Demonetization, Cooperative Societies to approach Court
Udupi: The District Co-operative Union Limited will be approaching the court over the demonetization of Rupees 1000 and 500 notes as demonetization has put the cooperative societies in financial crisis with the shortage of cash.
Kishan Hegde Kolkebail, President of the District Co-operative Union Limited said that the cooperative societies are the backbone of financial activities in rural areas, the cooperative societies welcome the move by the central government on demonetization but still the members of the cooperative societies face severe problems. The demonetization has badly affected the cooperatives societies since the members cannot repay the loans. The societies are even not able to give loans to members with non-availability of cash.
Rumours are been circulated of income tax raid on cooperative societies which is far from the truth. Cooperative societies are in a financial crisis. The cooperative societies have submitted a memorandum to the Reserve Bank of India and Finance Ministry to allow the societies to accept rupees 1000 and 500 for payment of loans. The acute shortage of cash has ruined societies as they cannot give loans.
The people’s representatives have made every effort to solve the problems without any success. The union has come to a conclusion that it will approach the court for legal assistance.
Managing Director of Badagubettu Cooperative Society Jayakar Shetty Indrali and others were present.
I’ve a feeling that there is something more to this story. For those who know how these cooperative societies operated, it should be no surprise. What demonetization does is to force everyone to either declare or dump the cash they were holding. If the cash is legally yours, you have nothing to hide!