Govt. of Punjab orders Audit of 19000 Cooperative Societies across State

The Government of Punjab has requested that the Registrar of Cooperative Societies conduct an audit of all the finances and assets of the state’s 19,000 cooperative societies.

The Special Chief Secretary, Cooperatives, issued the order, requesting quick compliance from the department.

Following this, Registrar Vimal Kumar Setia met with the department’s Chief Auditor today to devise a strategy for completing the audit of all societies.

It is learned that the decision to audit all societies was made when it was discovered that in the past, only 65% of cooperative societies were audited, which jumped to 93% last year.

There have also been claims that some of these organizations are making loans to non-members without the Registrar’s consent. There have also been instances of members failing to return term loans on time. These are the reasons why nearly half of all civilizations are losing money. Section 17 of the Cooperatives Societies Act requires the Registrar to have the societies audited at least once a year.

Setia, on the other hand, stated that all societies were audited on a regular basis. “Even now, we have completed audit of 98 percent societies, and the remaining societies will be completed soon,” he added, adding that the societies are audited cyclically.

Each of these societies is said to have a capital ranging from Rs. 2 lakh to Rs. 10 lakh. Crop loans are given to members twice a year, for the Rabi and Kharif crops. Members of cooperative societies like to obtain loans from them since they are generally hassle-free (in comparison to banks and other financial organizations), and they also receive a 3% interest subsidy. The loan from the societies comprises both cash and agricultural materials such as urea and DAP.

Aside from that, cooperative associations offer fertilizer to farmers. They also hold a considerable number of heavy agricultural tools, which they loan to members. Many organizations had just bought stubble management devices, rotavators, and balers, among other items, for use by all members collectively. It has been learned that the audit of these machines, as well as the cooperative societies’ trading operations, will be carried out.