State Govt initiates action against 338 co-op societies

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, reports Satyajit Joshi.

Imagine losing your life savings as your bank goes bankrupt or diverts your funds as loan to its office bearers.

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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.