State Govt initiates action against 338 co-op societies | india | Hindustan Times
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State Govt initiates action against 338 co-op societies

india Updated: Jan 19, 2009 15:04 IST
Satyajit Joshi
Satyajit Joshi
Hindustan Times
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Imagine losing your life savings as your bank goes bankrupt or diverts your funds as loan to its office bearers.

Maharashtra’s co-operation commissioner Krishna Lavhekar has initiated criminal action against 338 credit co-operative societies and arrested around 500 directors for financial irregularities. But this could be just the tip of the iceberg.

As many as 3.14 lakh investors, largely from semi-urban areas — small businessmen, working class, middle-class professionals - may be affected if the government cannot clean up the mess.

There are 25,000-odd co-operative credit societies with 1.10 crore members, which form the lowest rung of the banking system and provide micro-financing for a large section of the population. Most societies are headed or allied to politicians.