PANAJI
Chief Minister Pramod Sawant on Sunday announced that the government will halt permissions for traditional credit co-operative societies, asserting that many of them have “turned into a system of loot.”
Speaking at the 72nd All India Co-operative Week 2025 celebrations, Sawant said the State intends to gradually phase out such entities and instead promote modern, transparent and technology-driven co-operatives.
The Chief Minister stressed that the government’s priority is to strengthen new-age co-operatives with professional management and digital oversight to prevent financial irregularities.
“Traditional co-operative society’s days are over. We will not grant any more permission to such societies. Enough of give and take. They have become a system of loot. We now need to focus on promoting new-age co-operative societies,” he said.
He further noted that the government is working to boost women’s and youth participation in the co-operative movement and is also exploring avenues to encourage start-ups in the sector.
Sawant said these reforms are essential to ensure accountability and restore public confidence in the co-operative ecosystem.
Over the past few years, there have been repeated reports of financial irregularities in several credit societies. The government is of considerable view that a lack of regular audits has made it easier for some co-operative banks or credit societies to commit fraud.
Some of the major frauds involve Visionary Urban Co-operative Credit Society that ran into Rs 39 crore scam, Rs 4 crore misappropriation at Satteri Urban Co-operative Credit Society, Ashtagandha Urban Credit Cooperative Society involving Rs 11 crore fraud through fake loans, sanctions, etc.
