THIRUVANANTHAPURAM: In the wake of widespread complaints of fraud in co-operative banks, the state government has expedited the move to bring in a comprehensive amendment by including strict rules in the co-operative law to curb it. An attempt is being made to present a draft amendment bill in this regard in the Assembly session starting next month. If it doesn't materialize, it will be issued as an ordinance. The government on Wednesday appointed a special committee to look into the matter. Provisions, including stricter penalties for fraud, will be brought forth.

The government started amending the Co-operatives Act in July 2019. The three-member committee, which was tasked with submitting proposals to curb the growing unfavorable trends in the co-operative sector, submitted its report in the same year but no further action was taken. Meanwhile, scams have come to light in many places, including the Karuvannur Co-operative Bank. With that, the government decided to speed up the process. The new committee was appointed to study the recommendations and suggestions submitted by the earlier three-member committee and prepare a draft amendment bill incorporating the practical and legal provisions.

Committee members

The committee consists of Retd Co-operative Deputy Registrar Jose Philip, Co-operative Training Center Retd. Principal Madanachandran Nair, and Retd. Assistant Registrar NG Pradeep Kumar. The co-operative society appointed the Law Officer of the Registrar's Office as the convener. Kattakada Assistant Registrar Jayachandran, IT Nodal Officer Ayyappan Nair, Assistant Registrars Bijuprasad and Padmakumar were also appointed to assist the committee.

Strict conditions

• Co-operative fraud will be considered a criminal case and sentencing will be decided.
• If involved in fraud, their property will be frozen until the case is settled
• Special vigilance system in the co-operative sector
• The terms and conditions of the governing bodies will be changed