Prior permission required to purchase land and buildings, loss will be charged to governing body: Guidelines and circular issued

THIRUVANANTHAPURAM: The government has asked cooperative societies to obtain prior permission from the Cooperative Registrar to purchase land and buildings. It should also be made clear for what purpose these are being purchased. If there is a loss after purchasing these, the loss will be recovered from the members of the governing body. The ones who will have full responsibility for this would be the members of the governing body who decided to invest money without earning any profit in a way that would cause a loss to the society. The Registrar of Cooperatives has issued new guidelines and a circular in this regard.

This is due to the increasing trend of many cooperative societies buying land and buildings at a loss. If the Registrar's permission is obtained to purchase land and buildings, an advertisement should be given in two dailies with a certain circulation in the area of ​​operation of the society. The name of the society, the land intended to be purchased, and the quantity should be shown in the advertisement. If a written complaint or objection is received, further steps should be taken only after it is resolved.

The District Joint Registrar and Joint Director should ensure that the societies have complied with the government directive. If any lapse is found, strict action will be taken.

Board of directors should evaluate

• Land and buildings should be purchased in a way that does not affect the daily business of the society. If land is purchased from working capital, it should not exceed five percent.
• The board of directors should evaluate this properly and prepare a report. The amount spent on the purchase should be recovered in equal annual installments within ten years. The board of directors is responsible for ensuring the annual installments.

Joint Committee for Valuation

A joint committee should be formed to evaluate the value of the property to be purchased or sold. The price should be determined by considering the average price of similar land transactions within a radius of three kilometres over a period of three years. These procedures should also be followed when selling land.