Wednesday, June 03, 2020


Considering 5-year ban on new cash credit societies: Goa CM

July 09, 2019 02:32 PM

PANAJI:  The Goa government is considering banning registration of new cash-credit societies for a period of five years, Chief Minister Pramod Sawant said on Tuesday.

Sawant also said, that he had directed the state Registrar of Co-operatives not to permit non-Goans from setting up co-operatives in the coastal state on account of a spate of frauds carried out by such firms in the past.

"There are too many cash credit co-operative societies (in Goa). We are looking at legally shutting them down. In order to become chairpersons, some people start small collectives with acquaintances, collect a pool of money, give some loans and that is it. Such a society typically shuts down in two years, " Sawant said at an event here organised by the state Co-operatives Ministry.

"Should there be a ban on such societies for five years? There are more than enough already. If someone wants to start a new society, they may even consider taking over those which are willing to sell off. I have asked the department to review the law and if possible shut down registration of such societies for five years, " Sawant said.

The Chief Minister also said that his government was exploring options to ban non-Goans from starting co-operative societies in Goa, especially those which promise to double money in quick time.

"We are looking at not giving permission to non-Goans for starting co-operatives in Goa. We will not tolerate those who come here and loot Goans with such fraudulent schemes, " Sawant said, adding that there was a tendency among the residents of the state to fall for fraudulent schemes like doubling of money, which had led to investors going bankrupt.

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