registrar of co-operative societiessahakara.kar.gov.in/doc/annual report english -2015-16.pdf ·...

1

REGISTRAR OF CO-OPERATIVE SOCIETIES

INTRODUCTION

The greatest challenge to any civilized society is the

economic deprivation it harbours, in league with social deprivation.

It is inescapable that a collective war is waged to banish human

deprivation from our midst. No other organized set up can be more

potent for this attack than building human capital among the

deprived, through sustainable Cooperative Development Initiatives.

Congruity with human nature further enhances the value of such

initiatives. This principle is germane to the cooperative

management in the Country and Karnataka in particular, which

ensconces the basic human feeling of self-worth as its core. The

cooperative strategy goes deep into the realms of building financial

capabilities and self confidence especially among the rural poor.

COOPERATIVE MOVEMENT IN KARNATAKA

The State has witnessed tremendous growth in the

cooperative sector. Cooperative institutions have played a vital role

in the socio-economic development of the State, particularly in the

rural areas and in agriculture and allied sectors. It is our firm belief

and conviction that the Co-operative Institutions will continue to

play a key role in the economic development of the country and will

become more relevant in the changing economic environment of

liberalization and globalization.

Cooperative Movement is wide spread in all the

developmental sectors like Credit, Marketing, Consumers, Silk

Industry, Dairy, Fisheries, Horticulture, Sugar, House Building,

Constructions of godowns etc.

2

Chapter I :-

Vision

To promote and encourage the growth of self-reliant,

autonomous and economically viable co-operatives through active

participation of the members

Mission

The mission of the department is :-

1. to take steps to see that genuine co-operatives are organized

and managed on sound lines as per the basic principles of co-

operation.

2. to render guidance and assistance for the development of co-

operative movement in the State and there by promote the

economic interests and welfare of the people.

3. to serve as a friend, philosopher and guide to all types of co-

operatives.

Objectives

1. Strengthen the credit delivery system to the farmers through

PACS and sustain the PACS by effective implementation of

Business Development Plan.

2. Extend health care facilities to all the members of rural

cooperatives.

3. Encourage active participation of women and socially and

economically backward sections of the society in the

cooperative movement.

4. Strengthen the infrastructure and financial position of the

cooperative societies with a district level integrated approach.

5. Modernize the office management for improved efficiency.

3

Functions

1. Suggest suitable amendments to all the Acts and Rules

administered by the Department.

2. Regulate and guide the co-operative societies as per Co-

operative Act and Rules.

3. Ensure that various developmental schemes pertaining to the

co-operatives are effectively implemented.

4. Reform the process of settling claims under various

developmental schemes.

5. Modernize the office Infrastructure and impart HRD-related

training to all the personnel of the Department.

Organizational Structure of the Department;

The Department at the Government level has a secretariat

and a five-tier field department comprising of the State, Region,

District, Sub-division and Taluka levels. The field officers of the

cooperation department are not only in charge of regulating the

affairs of divisional, district and taluk level co-operatives but also

implementing the departmental programmes and schemes.

Secretariat:

The Department of Co-operation at the Government level is

headed by a Minister of cabinet rank. The Secretary to Government,

Department of Co-operation looks after the working of the Registrar

of Co-operative societies, Co-operative Audit, Agriculture

Marketing and the Karnataka State Warehousing Corporation. The

department of co-operation at the Secretariat is responsible for

policy making, planning, and budgeting and for providing other

support services to the co-operative sector. It provides norms and

broad guidelines for strengthening and consolidating the growth of

co-operatives. It liaises with Planning, Finance and other

departments and with the Government of India. It is the Appellate

4

authority under the KCS Act and Rules. Government is also the

appointing and disciplinary authority in respect of the “A” group

officers of these departments.

State Head Quarters:

The Registrar of Co-operative Societies is the Head of the

Department of Co-operation. He is also the Registrar General of

Money Lenders and Pawn Brokers and the Registrar of chits. He

exercises statutory powers under the Karnataka Co-operative

Societies Act 1959, the Karnataka Money Lenders Act 1961,

Karnataka Pawn Brokers Act 1961 and Chit Funds Act 1982. The

Registrar of Co-operative Societies is the Government’s nominee on

the boards of Apex level Co-operatives such as the Karnataka State

Co-operative Apex Bank, the Karnataka State Co-operative

Agriculture and Rural Development Bank, the Karnataka

Cooperative Milk Producers Federation, the Karnataka State Co-

operative Marketing Federation, the Karnataka State Co-operative

Federation etc.,

Regional, District, Sub-divisional and Taluk level:

The powers of the Registrar have been delegated to the

Additional Registrars of Co-operative Societies and Joint Registrars

of Co-operative Societies in the Head Office, 4 Regional Joint

Registrars of Co-operative Societies, 32 Deputy Registrars of Co-

operative Societies of the Districts/ Zone and 51 Assistant Registrars

of Co-operative Societies, based on the registered jurisdiction of the

cooperatives. These officers exercise statutory and administrative

control over the co-operatives in accordance with the powers

delegated to them and accordingly register, amalgamate, liquidate

co-operative societies, amend their byelaws, inspect the co-

operatives, function as quasi judicial authorities and perform all

other statutory duties.

5

2 The District Deputy Registrars also function under the

control of the Zilla Panchayats so far as the implementations of the

District sector Plan Schemes are concerned. The sub-divisional

Assistant Registrar’s of Co-operative Societies are responsible for

the implementation of the State Plan Schemes and the District

Sectors Plan Schemes. For implementation of plan schemes of the

District Sector, they work under the supervision of the Taluk

Panchayats. There are 208 Co-operative Development Officers,

101 Co-operative Senior Inspectors and 178 Co-operative Inspectors

working in the department.

Acts and Rules implemented by Co-operation Department

1. Karnataka Co-operative Societies Act, 1959 and Karnataka

Co-operative Societies Rules, 1960

2. Karnataka Moneylenders Act, 1961 and Karnataka

Moneylenders Rules 1965

3. Karnataka Pawnbrokers Act, 1961 and Karnataka

Pawnbrokers Rules 1966

4. Chit Funds Act, 1982 and Chit Funds (Karnataka) Rules 1983

5. Karnataka Public Money (Recovery of Dues) Act, 1980

6. Karnataka Agricultural Credit operations and Miscellaneous

Provisions Act, 1974

7. Karnataka Souharda Co-operative Act, 1997 and Karnataka

Souharda Co-operative Act Rules, 2004

8. Karnataka Prohibition of charging exorbitant interest Act,

2004.

6

Basic Statistics

Sl.

No

Particulars 2013-14 2014-15

2015-16

(tentative)

1

No.of cooperatives 38,430 39,627 40,643

Of which

a) working

b) defunct

c) under liquidation

33,717

2,389

2,353

34,664

1,665

3,298

35,589

1,746

3,308

2

Share Capital

(Rs. in crores)

of which

4116.18 4025.26 4644.18

a) Govt 175.43 250.39 238.91

b) Members 3940.75 3774.87 4405.27

3 Membership ( in lakhs) 215.52 223.99 234.65

4 Working Capital

(Rs. in crores) 65,052 69,353 86,212

5 Deposits

(Rs. in crores) 35,230 44,698 62,587

6 No. of villages covered by co-

operatives % 100% 100% 100%

7

No. of cooperatives societies

under profit

No. of cooperative societies

under loss

No. of co-operative societies

with no profit/ no loss

22,209

16,250

--

21,631

13,624

4,372

23,307

13,514

3,822

7

-: Chapter II:-

PERFORMANCE OF THE DEPARTMENT

Allocation and expenditure for the year 2013-14, 2014-15 and

2015-16 under State Sector plan schemes of the year 2015-16

a Name of the scheme and year of

introduction

Direction & Administration- 125-

Modernisation, 2007-08

b Budget head 2425-00-001-0-01-125

c If Plan, the Central and State

share is

0:100

d Objective of the Programme/

Project/ Scheme

Modernization of the offices,

computerization, development of software,

Digitization of office records and providing

Photocopiers, Fax machines, Computers -

peripherals and stationery for office use.

e Estimated benefit and number of

estimated beneficiaries from the

programme/project/ scheme

Establishing fully equipped offices with

latest technology for better communication

and effective administration, which in turn

will enhance the work efficiency of the staff

of the Department.

f) Financing:(Rs in lakhs) :

Actual / Accounts 2013-14 Actual / Accounts 2014-15 RE 2015-16

Capital Revenue Capital Revenue Capital Revenue

1 2 3 4 5 6

- 150.00 - 85.56 - 15.00

g) Expenditure (Rs in lakhs) :



1 2 3 4 5 6

- 147.94 - 84.42 - 15.00

8

h) Physical Achievements: (Units----)

2013-14 2014-15 2015-16

Two key Audit observations/Inspection

findings of year 2014-15 (Specify date of

audit/inspection and the reference number

of the Report: Specify, if no audit or

inspection was carried out)/ 1 2 3 4

12 8 5

Part2 Sec-B-IV-No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15


introduction

Technology & Human Resources

Development Fund, 2008-09

b Budget head

2425-00-800-0-01


share is

0:100


Project/ Scheme

Improving the work efficiency of the

officers and staff of the Department by

imparting training programmes on various

sectors.

E Estimated benefit and number of



Qualitative training on Departmental

programmes and Human Resource

Development (H.R.D) will result in

delivering high quality of service to the

concerned co-operative institutions and

public at large; which will ultimately

result in the effective implementation of

Departmental schemes.

9




1 2 3 4 5 6

- 15.00 - 12.84 - 5.00




1 2 3 4 5 6

- 14.92 - 10.46 - 4.85

h) Physical Achievements (Units----)

2013-14 2014-15 2015-16






563 500 394 --


introduction

Interest Subsidy to enable Crop Loans,

2004-05

b Budget head 2425-00-107-2-41


share is

0:100


Project/ Scheme

Reduction in the rate of interest on short

term agricultural loans to 0% and on

Medium term and Long term agricultural

10

loans to 3% and as a consequence of the

same the loss to the co-operative

institutions is reimbursed by way of

interest subsidy as per the commitment of

the Govt.




Strengthen the credit delivery system to

the farmers and make available easy credit

at concessional rates.




1 2 3 4 5 6

- 62750.02 - 62444.35 - 75454.25

g) Expenditure: (Rs in lakhs) :



1 2 3 4 5 6

- 62750.00 - 62444.35 - 75454.25


2013-14 2014-15 2015-16



audit/inspection and the reference

number of the Report: Specify, if no

audit or inspection was carried out)/ 1 2 3 4

16,66,083 15,87,328 19,72,744 Part2 Sec-A-I-No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15

11

a Name of the scheme and year

of introduction

Interest subvention for loans to Self

Help groups (SHG’s), 2007-08

b Budget head 2425-00-107-2-45


share is

0:100


Project/ Scheme

Reduction in the rate of interest on loans to

SHGs at 4% and as a consequence of the

same the loss to the co-operative

institutions is reimbursed by way of

interest subsidy as per the firm

commitment of the Govt.

e Estimated benefit and number

of estimated beneficiaries from

the programme/ project/

scheme

Providing accessible credit through formal

financial institutions to members belonging

to socially and economically backward

sections of the society, in particular

women.

f) Financing (Rs in lakhs) :



1 2 3 4 5 6

- 2000.00 - 2000.00 - 6262.75




1 2 3 4 5 6

- 2000.00 - 2000.00 - 5668.26


2013-14 2014-15 2015-16






46,698 47,464 1,41,469 --

12


of introduction

Loan waiver-Failed borewells, 2015-16

b Budget head/ 2425-00-107-2-46


share is

0:100


Project/ Scheme/

Waiver of those loans which were disbursed

to farmers through PCARD Banks for

drilling of bore wells for agricultural

purposes, and which has become overdue

on account of failure of borewells.

E Estimated benefit and number

of estimated beneficiaries

from the programme/project/

scheme

Waiving off the long overdue loans

outstanding will enable the farmers to avail

fresh loans for agricultural purposes at

concessional rate of interest.




1 2 3 4 5 6

- - - - - 200.00




1 2 3 4 5 6

- - - - - 200.00


2013-14 2014-15 2015-16

Two key Audit observations/Inspection findings

of year 2014-15 (Specify date of audit/inspection

and the reference number of the Report: Specify,

if no audit or inspection was carried out)/

1 2 3 4

- - 831 -

13

a Name of the scheme and

year of introduction

(TSP)-Establishment of Marketing

Infrastructure to LAMPS Federation, 2004-05

b Budget head 2425-00-108-0-39


share is

0:100

d

Objective of the Programme/

Project/ Scheme/

To provide assistance for infrastructure facilities

such as Computers, FAX machines, Telephone,

Transport vehicles etc to LAMPS Federation

and LAMPS Societies. Also provide financial

assistance for construction of godowns/

building.

E

Estimated benefit and

number of estimated

beneficiaries from the

programme/ project/ scheme

Assist the members of LAMP societies in

marketing their minor forest produce through

efficient means and as a consequence of which,

the members & societies thereby are

economically benefited.


Actual /Accounts 2013-14 Actual / Accounts 2014-15 RE 2015-16

Capital Revenue Capital Revenue Capital Revenue 1 2 3 4 5 6

- 25.00 - 32.00 - 50.00


Actual / Accounts 2013-

14

Actual / Accounts 2014-15 RE 2015-16


- 25.00 - 32.00 - 50.00


2013-14 2014-15 2015-16






4 4 4 ---

14


of introduction

Yeshasvini Rural, 2003-04

Yeshasvini Urban, 2014-15

b Budget head 2425-00-108-0-57


share is

0:100

d


Project/ Scheme/

To provide quality health care and improve

the living standards of rural and urban

cooperative members, thereby ensuring

overall health and welfare of the co-

operative members

e

Estimated benefit and number


the programme/project/

scheme

Free medical treatment for 823 types of

surgeries to the rural and urban cooperators

through 640 network hospitals. Improvement

in health conditions, financial position and

living standards of the members.


Actual /Accounts 2013-14 Actual /Accounts 2014-15 RE 2015-16


- 4500.00 - 6195.00(R)

1000.00(U)

- 9901.00(R)

1100.00(U)


Actual/Accounts 2013-14 Actual /Accounts 2014-15 RE 2015-16


- 4500.00 - 6195.00(R)

1000.00(U)

- 10115.15(R)

841.00(U)


2013-14 2014-15 2015-16


findings of year 2014-15(Specify date of




86,549 1,27,052(R)

5,648 (U)

1,57,386(R)

11,559 (U)

Part2 Sec-B-IV-No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15

15


introduction

Loan waiver, 2012-13

b Budget head/ 2425-00-107-2-46


share is

0:100


Project/ Scheme/

Under the scheme, the crop loan principal

upto Rs.25000/- including interest on it is

waived off to those farmers who have

availed crop loan during 01.08.2011 to

25.07.2012 from co-operative institutions.

E Estimated benefit and number of



Relieve the farmers of their loan burden

who have suffered on account of drought

in the State.




1 2 3 4 5 6

- 233864.83 - 472.82 - 1913.00




1 2 3 4 5 6

- 233864.83 - 472.82 - 1581.39


2013-14 2014-15 2015-16 Two key Audit observations/Inspection


audit/inspection and the reference number of

the Report: Specify, if no audit or inspection

was carried out)/

1 2 3 4

10,61,350 1,832 7,196 ----

16


of introduction

Enrolment of BPL/SC/ST/ Backward

Class/ Minority/ Women/ physically

challenged persons as members of all

types of Cooperatives, 2005-06

b Budget head

2425-00-108-0-58


share is

0:100


Project/ Scheme

The Scheme aims at enrolling people

belonging to SC/ST/BC/Minorities as

members in all types of co-operative

societies, thereby enabling them to obtain the

facilities made available by a co-operative

society.




scheme

Economically weaker sections of the people

belonging to SC/ST/BC/ Minorities will be

able to get the facilities made available by

the respective co-operative societies which

will uplift them socially/ financially.


Actual / Accounts 2013-14 Actual / Accounts 2014-

15

RE 2015-16


- 25.00 - 42.40 - 3200.00

g) Expenditure : (Rs in lakhs) :

Actual / Accounts 2013-

14

Actual / Accounts 2014-15 RE 2015-16


- 24.90 - 42.40 - 3200.00

17


2013-14 2014-15 2015-16






10,505 10,640 7,88,919 --




- 25.00 - 24.00 - 11.00


of introduction

Financial assistance to SC/ ST/ BC/

Minorities Cooperative Societies, 2009-10

b Budget head 2425-00-108-0-62


share is/ 0:100


Project/ Scheme

To provide financial assistance to create

infrastructure and assets to Cooperative

Societies belonging to SC/ ST/ Backward

Class/ Minority members.



the programme/project/

scheme

With better infrastructure the beneficiary

societies will be able to increase their

business and thereby achieve their

objectives.

18




- 24.914 - 23.96 - 11.00

h) Physical Achievements :(Units----)

2013-14 2014-15 2015-16






21 18 10 --


introduction

Loans to weak DCC Banks

b Budget head/ 6425-00-107-5-09


share is

0:100


Project/ Scheme

Extend financial assistance in the form

of loans to weak District Central Co-

operative Banks and help these banks

in their revival.




The assistance will help in meeting the

loan requirement of the famers of the

concerned districts.


Actual / Accounts 2013-14 Actual /Accounts 2014-15 RE 2015-16


- - - - 500.00 -

19


Actual / Accounts 2013-14 Actual / Accounts 2014-

15

RE 2015-16


- - - - 500.00 -

h) Physical Achievements : (Units----)

2013-14 2014-15 2015-16






- - 1 -



Financial assistance in the form of Share

Capital to the financially weak

Consumers, Marketing and Processing

Co-operative societies, 2012-13

b Budget head/ 4425-00-108-0-57-100


share is

0:100


Project/ Scheme/

To provide financial assistance in the form

of Share Capital to the financially weak

Consumers, Marketing and Processing Co-

operative societies to achieve their

objectives.

e Estimated benefit and

number of estimated



The assisted societies will increase their

Share capital/ own funds and improve their

business activities; helping them to achieve

financial stability.

20

f) Financing :(Rs in lakhs) :



40.00 - 85.56 - 140.00 -




40.00 - 80.00 - 140.00 -

h) Physical Achievements : (Units----)

2013-14 2014-15 2015-16






4 8 14 -



Loans to Karnataka State Co-operative

Agricultural and Rural Development Bank

Ltd.

b Budget head 6416-00-190-1-01-395

c If Plan, the Central and

State share is

0:100

d Objective of the

Programme/ Project/

Scheme

Meet the Govt. of Karnataka’s share of 4-5%

for extending term loans to KSCARD Bank

Ltd. for onward lending to PCARD Banks.

21


number of estimated



Will enable KSCARD Bank to avail refinance

facility from NABARD, thereby the farmers

will get long term loans at reasonable rates of

interest. This results in improving their

financial position and living standard.




400.00 - 1200.00 - 500.00 -




400.00 - 400.00 - 500.00 -


2013-14 2014-15 2015-16






1,000 1,000 1,200 Part2 Sec-B-V-2No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15



Co-operative Election Authority,2013-14

b Budget head 2425-00-004-0-03

c If Plan, the Central and

State share is

0:100

22

d Objective of the

Programme/ Project/

Scheme

In view of the Constitution (97th

Amendment) Act, 2011, amendments to the

Karnataka Co-operative Societies Act, 1959

and Karnataka Souharda Societies Act, 1997

has been made. An independent Co-

operative Election authority has been

established and Govt. is providing subsidy

to meet the administrative expenses of the

said Authority.


number of estimated



The Co-operative Election Authority is

vested with the superintendence, direction

and control of the preparation of the

electoral rolls for, and the conduct of, all

elections to the co-operative societies in the

State. This has ensured the conduct of free

and fair elections, Boards being established

and the governance of these societies by the

elected Office bearers.


Actual /Accounts 2013-14 Actual/Accounts 2014-15 RE 2015-16


- 500.00 - 213.91 - 200.00


Actual / Accounts 2013-14 Actual/Accounts 2014-15 RE 2015-16


- 500.00 - 77.74 - 184.32


2013-14 2014-15 2015-16






- 1 1 Part2 Sec-B-V-3No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15

23

a

Name of the scheme and


Construction and Maintenance of

PCARD, TAPCMS and Primary

Agricultural Co-op Societies, 2013-14

b Budget head 2425-00-108-0-70-100


share is

0:100

d


Project/ Scheme

This is a scheme being implemented from

the year 2013-14. Aims at providing

financial assistance for construction of

new buildings and repair/ maintenance of

existing buildings of PCARD Banks,

Taluk Agricultural Produce Co-operative

Marketing Societies and Primary

Agricultural Co-op Societies.

e


number of estimated



Construction of new buildings and repair/

maintenance of existing buildings of the

co-operative societies will help in the

creation of desirable quality assets to

these societies.




- 300.00 - 1400.00 - 2424.00




- 300.00 - 517.50 - 2424.00

24


2013-14 2014-15 2015-16



audit/inspection and the reference number of

the Report: Specify, if no audit or inspection

was carried out)/ 1 2 3 4

24 170 377 Part2 Sec-B-V-3No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15

a

Name of the scheme and


Construction of godowns for Primary

Agricultural Credit Cooperative Societies

under PPP model, 2015-16

b Budget head 2425-00-001-0-01


share is

0:100

d


Project/ Scheme

Construction of godowns in those Primary

Agricultural Credit Cooperative Societies

which do not have godowns, with the

participation of public and private sector.

e


number of estimated



The godowns will increase the storage

capacity and thus assist in storing the

agricultural produce of the farmers in a

scientific manner.




- - - - - 500.00

25




- - - - - 500.00


2013-14 2014-15 2015-16

Two key Audit observations/ Inspection





- - 115 --

a

Name of the scheme and year

of introduction

Financial Assistance for Construction of

training centres of Karnataka State

Cooperative Federation

b Budget head 4425-00-108-0-73-059


share is 0:100

d


Project/ Scheme

Construction of 3 training centers at

Belgaum, Dharwad, Bangalore under the

administration of Karnataka State

Cooperative Federation.

e




scheme

The construction of modernized training

centers will help in imparting effective

training to the co-operators/ employees of

co-operative societies.

26




- - 77.01 - 60.00 -




- - 77.01 - 60.00 -


2013-14 2014-15 2015-16






- 1 1 Part2 Sec-B-V-1-No.AG(E&RSV/VS/I/H/

2015-16/33 dated:09-12-15


of introduction

Computerisation of PACS and SHG,

2014-15

b Budget head 2425-00-004-0-01


share is 0:100

d


Project/ Scheme

Development and implementation of a

common software solution in the Primary

Agricultural Credit Co-operative Societies

(PACS) in the State thereby

computerising their day to day business

and financial transactions.

27

e




scheme

Computerising PACS will help in

accurate preparation of interest subsidy

claim bills from the Govt., maintenance of

data and effective reporting of MIS.




- - - 211.70 - 245.00 g) Expenditure: (Rs in lakhs) :



- - - - - 1.40


2013-14 2014-15 2015-16






- - - -

a


of introduction

Financial assistance to buy cleaning and

grading equipments to Primary

Agricultural Credit Co-operative

Societies

b Budget head 2425-00-001-0-01


share is 0:100

28

d


Project/ Scheme

Provide cleaning and grading equipments

to the Primary Agricultural Credit Co-

operative Societies to enable primary

value addition, cleaning and

categorization of agricultural produce and

thereby assist the farmers.

e


of estimated beneficiaries

from the programme/project/

scheme

Will enhance the quality of agricultural

produce and due to the value addition the

farmers will be able to obtain a good price

for their produce.




- - - - - 300.00




- - - - - 201.98


2013-14 2014-15 2015-16






- - 187 -

29

a


of introduction

Share capital assistance to Karnataka

State Industrial Co-operative Bank,

2015-16

b Budget head 4860-04-190-5-01


share is 0:100

d


Project/ Scheme

Sanction of additional share capital to

Karnataka State Industrial Co-operative

Bank for its revival.

e



the programme/project/ scheme

The financial assistance in the form of

share capital will assist in the revival of

the said Bank.




- - - - 1000.00 -


Actual /Accounts 2013-14 Actual / Accounts 2014-15 RE 2015-16


- - - - 1000.00 -


2013-14 2014-15 2015-16






- - 1 -

30

Sources of Income of the Department:

Since the Department of Cooperation is considered as a

"Development Department", the sources of income of the

Department are not many and the progress made during the last two

years are shown as under.

Receipts year wise

(Rs. in lakhs)

Sl.

N0. Particulars

2014-15

2015-16 (As at end of

Jan-16)

1. Interest from Co-operatives 579.77 457.14

2. Dividend credited by Coops 117.32 122.53

3. Copying charges 8.35 9.67

4. Execution fee 190.00 174.23

5. Fees under M.L. 378.20 310.27

6. Fee under Chit Fund rules 133.70 105.17

7.

Registration fees of co-operative

societies and Amendment of Bye-

law fees

54.31 59.40

8. ABN fees & other items 158.44 102.56

9. Registration fee under Souharda 17.22 16.96

10. Fee collected under K.P.M.R Act. 26.91 21.55

11. Fee collected under KACOMP Act 135.39 52.78

12. Leave Salary Contribution 1.19 3.52

13.

Assistance from NCDC towards

Expenditure on schemes sponsored

by them

2.57 1.97

14. Cost of Staff under Rule 441 158.15 118.69

15.

Fee paid to receive Certified

Copies under Karnataka Co-

operative Societies Rules-1960

2.37 0.92

Total 1963.89 1557.36

31

Souhardha Co-operatives:

As on 31-3-2016 there are 3,580 Souhardha societies registered

under Souhardha Act 1997, the breakup of which is as below-

1) Souhardha Urban co-op Banks : 18

2) Credit souhardha co-op : 2006

3) Multi purpose souhardha : 1278

4) Others : 278

-------

Total 3580

Cooperatives undertaking e-Stamping business : 891

Money Lenders/Pawn Brokers/Chit Funds :-

As on 31-3-2016 there are 17,027 money lenders/ financial

institutions, 10,061 pawn brokers functioning in the State and the

licence fee paid by these institutions during the year 2015-16 is

Rs.176.12 lakhs. In accordance with Section 28 of the Karnataka

Money Lenders Act, 1961 the Government Notification dtd.28-8-

2003 specifies the maximum rate of interest to be levied by the

above institutions i.e 14% for secured loans and 16% for unsecured

loans per annum. As on 31-3-2016, 1042 Chit companies are

functioning in the State. A sum of Rs.91.02 lakhs has been remitted

as fees to the Government during the year 2015-16 .

32

Enquiry and Inspection

Enquiries under sec 64 of KCS Act, 1959:

As on 31-3-2015, 78 enquiries were pending and during the

period 1-4-2015 to 31-3-2016, 73 fresh enquiries were ordered. Out

of the total 151 enquiries ordered, 45 enquiries were completed and

106 enquiries are pending, of which 82 are pending for less than one

year and 24 are pending for more than a year.

Inspections under sec 65 of KCS Act, 1959

As on 31-3-2015, 80 inspections were pending and during

the period 1-4-2015 to 31-3-2016, 47 inspections were newly

ordered. Out of the total 127 inspections, 42 inspections have been

completed and 85 inspections are pending of which, 72 are pending

for less than one year and 13 are pending for more than a year.

Agricultural Co-operative Credit Structure

In the short term credit structure, out of 5,463 PACS in the

State 5,230 PACS are functioning. In addition to this, there are 21

District Cooperative Central Banks (DCCB) with 698 branches.

Karnataka State Co-operative Apex Bank is functioning as State

level financial institution.

Karnataka State Co-operative Agriculture and Rural

Development Bank (KSCARD) at the State level and 177 Primary

Cooperative Agriculture and Rural Development Banks at the taluk

level cater to the long term credit needs in the two tier credit

delivery system.

33

The National bank for Agriculture and Rural Development

(NABARD) provides refinance to the Apex bank and KSCARD

Bank on the loans disbursed by them.

Agricultural loan disbursement and Kissan credit cards

Agricultural Loans disbursement from 01-04-2015 to 31-03-2016

( Rs in crores)

S.

No Particulars Number Amount

Out of which Loans

for New members

Out of which

Loans to SC/ST

members

No. Amt No. Amt

1 Short term

loan 2256129 10235.63 136571 624.63 295101 1078.57

2 Medium term

loan 22478 373.79 22402 368.31 2562 29.88

3 Long term loan 17883 262.50 10747 115.97 1389 19.09

Total 2296490 10871.92 169720 1108.91 299052 1127.54

The funds involved by various institutions in the Short term

agricultural loans disbursed through PACS are as follows:

Sl.No Name of the Institution Funds Involved

( Rs. In crores)

1 NABARD 3950.00

2 APEX Bank 1540.37

3 DCC Banks 4334.45

4 PACS Own funds 195.39

5 Commercial Bank 215.42

Total 10235.63

34

Performance of short term, medium term and long term credit

structure in Karnataka from 2013-14 to 2015-16

( Rs.incrores)

Year

Short term Medium term Long term Total

Perce

ntage

(%)

Target Achieve

ment

Target Achiev

ement

Target Achiev

ement

Target Achieve

ment

2013-14 7936.00 7559.73 375.00 309.08 183.98 212.00 8494.98 8080.81 95.13

2014-15 10000.00 9285.99 400.00 292.95 300.00 317.66 10700 9896.60 92.49

2015-16 10000.00 10235.63 400.00 373.79 238.00 262.50 10638 10871.92 102.19

3950, 39%

1540.37, 15%

4334.45, 42%

195.39, 2% 215.42, 2%

The funds involved by various institutions in the ST Agri loans disbursed through PACS

(Rs. in crores)

NABARD

APEX Bank

DCC Banks

PACS Own funds

Commercial Bank

35

As against the target of agricultural loan disbursement of

Rs.60321.68 crores during the 12th five year plan, Rs. 35399.51

crores of agicultural loans has been disbursed as on 31-03-2016

thereby achieving progress of 58.68%.

During the year 2015-16, the short term (ST), medium term

(MT) and long term (LT) loans disbursed by the co-operative credit

system in the State was Rs.10235.63 crores, Rs.373.79 crores and

Rs.262.50 crores respectively, thereby achieving progress of

102.19% as against the annual target.

The scheme of disbursing loans to the farmers through

Kissan Credit Cards was started from the year 1997-98. As on 31-

03-2016, 23,16,355 KCC cards has been distributed of which

21,03,344 KCC cards holders are covered under Personnel accident

insurance scheme.

95.13

92.49

102.19

Disbursement of agricultural loans during the past 3 years

(Achievement as against target in (%) )

2013-14

2014-15

2015-16

36

Recovery of loans:

The comparative position of recovery of short, medium and

long term loans under the cooperative credit system in the state for

the years from 2013-14 to 2015-16 is presented in the following

table.

(Rs.in crores)

Year

Short term loan Medium term loan Long term loan

Demand Collection Balance %of

Recy Demand

Collec-

tion Balance

% of

Recy Demand

Collec-

tion Balance

% of

Recy

2013-14 6257.16 6061.20 195.96 96.87 182.72 157.77 24.95 86.35 605.20 356.23 248.97 58.87

2014-15 7445.51 7242.95 202.56 97.28 308.13 276.22 31.91 89.64 589.17 304.09 285.08 51.61

2015-16 9757.32 9594.06 163.26 98.33 210.18 182.18 28.00 86.68 590.69 218.58 372.11

37

(tentat

ive)

0

20

40

60

80

100

2013-14 2014-15 2015-16

96.87 97.28 98.33 86.35

84.92 89.64

58.87 51.61

37

RECOVERY IN PERCENTAGE OF ST, MT, & LT LOANS

Short term loan % ofRecovery

Medium term loan % ofRecovery

Long term loan % ofRecovery

37

I. Interest subsidy on Agricultural Loans disbursed at 0 & 3%:

The scheme of advancing agricultural short, medium and

long term loans to the farmers at the rate of interest of 3% through

Cooperative Credit Institutions has been implemented from

01.04.2008. The interest rate on loans upto Rs.3 lakhs has been

reduced to 1% during 2011-12. Since 01.04.2012 the interest rate on

loans disbursed uptoRs. 1 lakh is reduced to 0% and on entire loan

above Rs.1 lakhs upto Rs.3 lakhs at 1%. The differential rate of

interest is reimbursed by the Government to the Cooperative

Institutions by way of interest subsidy.

During the year 2013-14 the interest rate on loans disbursed

uptoRs. 2 lakh has been reduced to 0% and the entire loan above

Rs.2 lakhs upto Rs.3 lakhs is disbursed at the rate of 1%. Further

during the year 2014-15 the limit of agricultural loans disbursed at

0% has been increased to Rs.3 lakhs, which was continued in the

year 2015-16.

In the year 2015-16, Rs. 75454.25 lakhs was provided for

implementation of this scheme. The Government has released Rs.

75454.25 lakhs and the entire amount is released through DCC

Banks towards the claims of 19,72,744 beneficiaries.

During the said period, out of the amount released

Rs.3181.07 lakhs was spent under the special component plan

towards the claims of 1,12,466 SC beneficiaries and Rs.3775.43

lakhs was spent under the Tribal Sub-Plan towards the claims of

1,58,617 ST beneficiary members.

Budget allocation in the said scheme during the last 3 years

(Rs. in lakhs)

Sl.

No. Year

Budget

allocation

Funds released

by Gok

Out of which

SCP TSP

1 2013-14 62750.02 62750.00 2250.00 400.00

2 2014-15 62444.35 62444.35 2379.16 1811.38

3 2015-16 75454.25 75454.25 3669.50 3287.00

38

II. Loan Waiver -2012 Scheme

Short term agricultural loan up to Rs.25,000 borrowed from

agricultural co-operative credit societies during the period 1-8-2011

to 25-7-2012 and has remained outstanding as on 25-7-2012 has

been waived off along with interest.

During the said period, in case of loans borrowed above

Rs.25,000 and have remained outstanding as on 25-07-2012, subject

to the repayment of the loan amount over and above Rs.25000 with

in the due date or 30-6-2013, which ever is earlier, the Principal

amount of Rs.25,000 and interest on it has also been waived.

In the year 2012-13, budget provision of Rs.1140.00 crores

has been made of which Rs.940.00 crores has been released to the

co-operative institutions in favour of 4.03 lakh farmer members.

During the year 2013-14 out of the budget provision of Rs.2338.65

crores, the Govt. has released the entire amount, which has in turn

benefitted around 10.61 lakh farmer members. Further during 2014-

15, the budget provision of Rs. 4.73 crores has been released on

behalf of 1,832 lakh beneficiaries. In the year 2015-16, out of the

budget provision of Rs.19.13 crores an amount of Rs.15.81 crores

has been released to the co-operative institutions on behalf of 7,196

farmer members.

III. Formation, Fresh Finance and Repeat Finance of Self help

groups

(Rs.in crores)

Year

Group Formation Fresh Finance

Target Achievement Target Achievement

No Amt No Amt

2013-14 30000 13765 33150 331.50 11097 96.34

2014-15 10000 11368 19779 132.30 10887 103.24

2015-16 6000 11442 11723 111.75 9361 102.47

39

Year

Repeat Finance Total Loans

Target Achievement Target Achievement

No Amt No Amt No Amt No Amt

2013-14 32175 643.50 25883 473.23 65325 975.00 36980 569.57

2014-15 40221 596.89 26417 544.68 60000 729.19 37304 647.92

2015-16 28277 598.25 24568 521.82 40000 710.00 33929 624.29

30000

10000

6000

13765 11368 11442

0

5000

10000

15000

20000

25000

30000

35000

2013-14 2014-15 2015-16

No. of SHGs formed ( achievement as against target)

Target Achievement

975.00

729.19 710.00 569.57 647.92 624.29

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

2013-14 2014-15 2015-16

Target Achievement

Loans advanced to SHGs (achievement as against target)

(Rs. in crores)

40

Interest subsidy to Self Help Groups :-

The scheme of advancing loans at interest rate of 4% through

primary agricultural credit societies to Self Help groups (SHGs) in

Karnataka has been implemented from 01.04.2007. The differential

rate of interest is being reimbursed as interest subsidy by the

Government to the co-operative societies. Interest subsidy at the

rate of 8.25% and 7.5% to PACS and DCC Banks respectively has

been provided on loans disbursed during the year 2013-14. Budget

allocation of Rs.6262.75 lakhs has been provided for the year 2015-

16 and the entire provision has been released as interest subsidy to

the co-operative institutions.

Budget allocation during last 3 years in the above scheme

(Rs in lakhs)

Sl.

No Year Budget allocation

Funds released by

Govt

1 2013-14 2000.00 2000.00

2 2014-15 2000.00 2000.00

3 2015-16 6262.75 6262.75

IV. Construction and maintenance of PCARD Banks, TAPCMS

and Primary Agricultural Credit Co-Op Societies

Under the said Scheme, Rs.3 crores has been released to 26

co-operative societies in the year 2013-14 and Rs.5.25 crores is

released to 96 co-operative societies during the year 2014-15.

Further Rs.24.24 crores has been released for the construction of

new building and maintenance of the existing building of 377

PCARD Banks, TAPCMS and Primary Agricultural Credit Co-Op

Societies during the year 2015-16.

41

V. Scheme for providing assistance to Primary Agricultural

credit cooperative societies for purchase of agricultural

cleaning and grading machines

Under the said Scheme, Rs.2.02 crores has been released to

187 PACS to purchase of cleaning and grading machines, thereby

providing better marketing facility to members of the PACS.

VI. Scheme for providing assistance to Primary Agricultural

credit cooperative societies for construction of godown

Under the said Scheme, Rs.5.00 crores has been released to

115 Primary Agricultural credit cooperative societies to have their

own godowns; involving financial contribution in the ratio of 70:30

from PACS and the Government.

In order to give relief to farmers suffering due to severe

drought during 2015-16, Govt has announced two schemes

to help the farmers in reducing teir financial burden.

VII. Interest waiver Scheme on Postponement of Installments of

Medium and Long term Agri loan for one year

Under the said scheme, Govt has accorded sanction for the

postponement of the re-payment of regular medium-term and long-

term agricultural loan installments by one-year for agricultural loans

which were disbursed after 2004 and the installments of these loans

fall due during the year 2015-16 by the farmers to the cooperative

banks. The Government will bear the interest burden of Rs.65.87

crores during the year 2015-16 and Rs. 228.31crores during the

subsequent years on account of the postponement in respect of app.

2.93 lakh farmers.

42

VIII. Interest waiver on Overdue Agricultural loans

Under the said scheme, Govt has waived the interest on Over due

principle of Short term, Medium term and long term Agricultural

loans as on 30-9-2015 , provided that farmers pay the principal

amount within 31-03-2016. This will approximately benefit 2.07

lakh farmers and will create a burden of Rs. 250.77 Crores on the

state government.

Govt has further extended the period for repayment of overdue loans

till 30-9-2016 for the benefit of those farmers who were not able to

repay the overdue loans to cooperative societies.

IX. Loan waiver of failed bore wells of PCARD bank

Under the said scheme, Govt has waived those loans availed by

farmers for bore wells from PCARD banks, which have failed and

released an amount of Rs.2.00 crore with respect to 831 farmers.

X. Yeshasvini Co-Operative Farmers’ Health Care Scheme

Yeshasvini Co-operative Farmers’ Health Care Scheme was

started in June 2003 and has completed 13 years. Ever since its

commencement; the scheme has been successfully implemented to

provide quality health care service to the under privileged members

of society.

Any member of a cooperative society who has completed 3

months of his admission as a member of cooperative society can

enroll himself and his family members under Yeshasvini scheme by

paying the annual contribution fixed by the Trust.

43

The Scheme is implemented for the members of Rural and

Urban Cooperative Societies and their families. The annual

contribution per person for general category members and their

family in respect of Rural co-operative societies is Rs.300/-. The

SC/ST members have to pay Rs. 50/- only and remaining amount of

Rs. 250/- is subsidized by the Govt.

From new born baby to a person in his lifetime can become a

member subject to the eligibility norms. The maximum limit

of treatment in Rural Yeshasvini borne per member is Rs.

1.25 lakhs for single admission & for multiple admissions is

Rs. 2.00 lakhs in the same year.

The scheme is only a surgical health care scheme and

provides 823 surgical procedures identified by the Trust to

its members through 640 empanelled Network Hospitals.

The Yeshasvini Scheme was also extended to the members

of Urban Co-operatives from 1st June, 2014. Under the

Urban Yeshasvini Scheme the general category members

have to pay annual contribution of Rs. 710/-; and SC/ST

members have to pay Rs. 110/- only and the remaining

amount of Rs.600/- is subsidized by the Govt.

Under Urban Yeshasvini the maximum limit of treatment per

person for single admission is Rs. 1.75 lakhs and for multiple

admission is Rs. 2.50 lakhs in the same year.

The scheme provides the following medical benefits to its members.

1. The outpatient consultations at discounted rates.

2. Clinical investigations at discounted rates.

3. Treatment for 823 procedures including dog bite, electrical

shock, snakebite, bull gore, drowning, accidental wounds by

agricultural implements, Ortho surgeries & hip replacement,

general delivery & new born baby care treatment in Network

Hospitals with general ward facility.

44

Besides providing facilities under Yeshasvini scheme to

cooperative farmers’, weavers’, fishermen and their families, the

scheme is also extended to family members of self help groups

organised by cooperatives and self help groups doing transactions

with cooperative societies and cooperative Banks.

During the year 2015-16, 41,29,019 members had enrolled

under the scheme, out of these 1,68,945 members have undergone

surgical treatment at Network Hospitals.2,19,444 members have

been provided outpatient treatment. The Govt. has provided

Rs.10956.15 lakhs grant for the implementation of this during the

year 2015-16.

***********

45

Chapter III :-

Performance of the State level cooperative Federations :

1. Karnataka State Co-operative Apex Bank Ltd., Bangalore

The Karnataka State Co-operative Apex Bank, established in

1915 is earning profit since inception. As on 31-03-2016 the bank

has own funds of Rs. 674.56 crores, working capital of Rs.14405.60

crores and deposits of Rs. 7200.91 crores.

2. Karnataka State Co-operative Agricultural & Rural

Development Bank Ltd.,

The Karnataka State Co-operative Agriculture and Rural

Development Bank raises resources for meeting its objectives by

way of direct loan from NABARD. As on 31-03-2016 the Bank has

share capital of Rs. 57.05 crores, of which the Government’s share

is Rs. 4.45 crore and has a working capital of Rs. 2110.81 crores

(tentative).

3. Urban Co-operative Banks

Urban Co-operative cater to the needs of non agricultural

credit. The Urban Co-operative Banking Sector in the State has

achieved good progress in the Banking Sector and has acquired third

place in the country. As on 31-03-2016 there are 248 Urban Co-

operative Banks which are functioning with a membership of 23.68

lakhs members, Rs.1074.19 crores of share capital and working

capital of Rs.27331.39 crores

46

4. Women Urban Co-operative Banks

Among the above Urban Co-operative Banks, there are 28

banks organized exclusively by women of which 24 are functioning.

The organization and development of women co-operative banks

has occupied the top place in the country.

5. The Karnataka State Co-operative Urban Banks Federation

Ltd., Bangalore.

The Karnataka State Co-operative Urban Banks Federation

registered during the year 1965 with Primary Urban Co-operative

Banks as its members, is providing institutional assistance to its

members. There are two Joint Registrars of Co-operative Societies

U/R 441 exclusively to hear disputes pertaining to Urban Banks.

6. The Karnataka State Credit Co-operative Societies

Federation Ltd., Bangalore

The Karnataka State Credit Co-operative Societies

Federation was registered on 2-11-2004. As on 31-3-2016, 604 Non

Agricultural Credit Co-operative Societies have become its

members. The Federation is imparting short term programmes on

income tax, audit, establishing separate courts for recovery of over

due loans, suggesting measures for protecting members deposits

etc. The federation also provides guidance in redressing problems

faced by member societies.

7. Co-operative Marketing Societies

The co-operative marketing structure in the State functions

under the 2-tier system. At the State level the Karnataka State Co-

operative Marketing Federation functions as the Apex Institution

and the Agricultural Produce and Marketing Co-operative societies

function at the State level.

47

7. (a) The Karnataka State Co-operative Marketing


The Karnataka State Co-operative Marketing Federation was

registered on 11-11-1943 under the Karnataka co-operative societies

Act. In the initial years the Federation was involved in the

distribution of Coffee seeds, Sugar, Clothes, Cement and other

consumer items. In the subsequent years the Federation has involved

itself in procuring and distributing of agricultural inputs essential to

the farmers such as fertilizers and insecticides and also purchase of

agricultural outputs from the farmers.

The major activities of the Federation are supplying

fertilizers and pesticides necessary to the farmers through co-

operative societies, under the Minimum price support Scheme of the

Govt, Market intervention Scheme and through its own funds

purchase of agricultural outputs from the farmers and construction

of godowns in important centers of the State and thereby providing

storing facility for the agricultural produce.

In order to ensure timely supply of fertilizers to the farmers,

the Government has implemented the Fertilizer Buffer Stock

Scheme from the year 2008-09 through the Karnataka State Co-

operative Marketing Federation. This has facilitated a business

turnover of Rs. 5800 crores to the Federation through marketing of

64.66 lakh tonnes of fertilizers, which has augmented its financial

position. The Government has also extended guarantee to the

Marketing Federation for raising loans for purchase of fertilizers to

the tune of Rs. 800 crores from the Banks.

The Federation has 483 co-operative societies as its members

with total share capital of Rs.712 lakhs and working capital of

Rs.590.64 lakhs. During the year 2015-16 the turnover in respect of

fertilizer distribution is Rs. 3.08 lakhs and that of agricultural

outputs is Rs.7994 lakhs. The said Federation is playing an

48

important role in the distribution of fertilizers, pesticides, seeds and

agricultural implements to the farmers and also in the marketing of

agricultural produce.

7. (b) Agricultural Produce Co-operative Marketing Societies

There are 181 Taluk Agriculture produce Co-operative

Marketing Societies working in the State. The area of operation of

these societies extends to a taluk and they function at the taluk

headquarters. The main objectives of these societies are to procure

agricultural produce from the farmers and enable marketing of these

produce thereby ensuring right price for the agricultural produce,

construction of godowns for storage of these agricultural produce.

Along with this implementation of the food ration scheme of the

Govt., distribution of ration to hostels/ prisons and marketing of

fertilizers, insecticides, agricultural implements are their other

objectives. Apart from these societies there are five specialized

Marketing Societies dealing with Commercial Crops like arecanut

etc.,

As at the end of 2015-16, these 181 co-operative societies

have 4844 co-operative societies and 3.33 lakhs individuals as its

members. The total share capital is Rs. 3352.78 lakhs, (of which

Government Share capital is Rs. 1436.09 lakhs), working capital is

Rs. 64895.98 lakhs and business turnover is Rs. 89069.33 lakhs.

8. Processing Cooperative Societies

For processing of agricultural and horticultural produce such

as Rice, Dal, Oil, Cotton, Coffee, Arecanut, fruits, processing units

are established in the Cooperative sector.

Out of these (1) CAMPCO Ltd., Mangalore (Arecanut and

Cocoa Marketing Processing Cooperative Society) (2) COMARK

Ltd., (Coffee) Hassan (3) Rubber, Marketing and Processing

Cooperative Society Ltd., Mangalore have been registered under the

Multistate Cooperative Societies Act 1984/2002.

49

There are other Areca Marketing and Processing Cooperative

Societies in the Areca growing Districts of the State and they

are:-

1. Karnataka State Cooperative Arecanut Marketing Federation

Ltd., Shimoga.

2. The Totagars Cooperative Sale Society Ltd., Sirsi

3. The Malnad Areca marketing Cooperative Society Ltd.,Shimoga

4. The Areca Processing and Sales Cooperative Society Ltd., Sagar

5. Hassan Valaya Arecanut Growers Co-operative Society Ltd.,

Hassan.

In the State, there are Rice Mills which have been established by the

TAPCMS. Kodagu Coffee Growers Cooperative Society is

registered on 02-01-1956 for processing of coffee.

9. The Karnataka Cooperative Oil Seeds Grower's Federation,

Bangalore

The Federation has only four members, viz, three regional oil

seed growers cooperative unions working at Chitradurga, Hubli and

Raichur and NDDB. The regional unions have a total membership

of 352 Oilseeds growers Cooperative Societies with 1.46 lakhs

farmers. As on 31-03-2016, the Federation has share capital of

Rs.179.12 lakhs and working capital of Rs.3000 lakhs and business

turnover during the year 2015-16 is Rs.24,226 lakhs and has earned

a net profit of Rs.414.76 lakhs.

10. The Karnataka State Cooperative Horticulture Marketing


The Federation was registered on 25-10-96. The main

objective of the Federation is to develop and encourage horticulture,

supply of inputs to the farmers, procurement and marketing of

produce.

50

11. Horticulture Producers Cooperative Marketing and

Processing Scoiety Ltd., Bangalore (HOPCOMS)

Horticulture Producers Co-operative Marketing and

Processing Society Ltd., Bangalore (HOPCOMS) registered in 1959

has at present 295 selling points and 7 procurement centres. It

procures horticultural produce from the growers at reasonable prices

and arranges for grading and marketing to the consumers at

reasonable prices. As on 31-03-2016, the society has 18,282 ‘A’

class members, ’B’ class (Government Share)-1 and ’C’ class 930

members with share capital of Rs. 273.30 lakhs, working capital of

Rs. 471.00 lakhs and earned a net profit of Rs.137.13 lakhs.

12. Consumer Co-operatives

In the State, consumer co-operatives are working in 3 stages viz.,

1) The Karnataka State Co-operative Consumers Federation

Ltd., Bangalore at the State level.

2) The District Central Co-operative Wholesale Stores at the

district level.

3) The Primary Consumer Co-operative Societies at the

Primary level.

12 a) The Karnataka State Co-operative Consumer's

Federation

The Federation which was registered in the year 1964 has 25

members. It has 4 Janatha Bazaars at Bangalore and 6 Janata

Bazaars and 9 branches in other districts. For the year 2015-16, the

Federation has share capital of Rs. 269.00 lakhs, (of which

Government Share capital is Rs. 257.99 lakhs), Rs. 1508.00 lakhs

of working capital and business turnover of Rs. 15569.52 lakhs.

During the year 2015-16 the Federation has earned a profit of

Rs. 409.71 lakhs.

51

12) b) District Central Co-operative Wholesale stores

There are 24 working District Central Co-operative

Wholesale Stores in the State having 76,157 members with a share

capital of Rs. 332.91 lakhs (of which Government Share Capital is

Rs. 145.23 lakhs) and Rs. 3228.65 lakhs working capital. The said

stores have made a business turnover of Rs. 10429.00 lakhs and

have earned a profit of Rs. 365.77 lakhs and as on 31-03-2016 they

have an accumulated loss of Rs. 235.25 lakhs.

12 c) Primary Consumers Cooperative Societies

There are 1275 Primary Consumers Co-operative Societies

working in the State having 5.31 lakh members. As on 31-03-2016,

these societies have a share capital of Rs.1566.658 lakhs (of which

Government share capital of Rs.618.20 lakhs) and undertaken

business turnover to the extent of Rs.8247.14 lakhs. These co-

operative societies have undertaken controlled/ non-controlled

business turnover of Rs.14624.86 lakhs and have earned a profit of

Rs.7366.30 lakhs and as on 31-03-2016 it has accumulated loss of

Rs.268.65 lakhs.

13. Karnataka State Co-operative Milk Federation Ltd.,

Karnataka Co-operative Milk Producers Federation Ltd.

(KMF), a co-operative apex body established in 1984, is

implementing dairy development activities since 3 decades in the

entire State through 14 district cooperative milk unions in co-

ordination with NDDB, ushering prosperity in the lives of rural milk

producers.

As at the end of March-2016, 14,826 dairy co-operative

societies (DCS) have been organised covering 21,777 villages of

172 taluks in the area of operation of 14 district cooperative milk

unions, of which 13,270 DCS are functioning and 96% of them are

52

in profit. There are 23.47 lakhs farmer members in these DCS, out

of which 8.24 lakhs are women members.

DCS are procuring milk from the member producers twice a

day throughout the year. The average milk procurement per day

was 64.83 lakh kgs during 2015-16. The surplus milk is converted

into milk products. The Federation occupies second position in the

country as far as milk procurement by co-operatives is concerned

and occupies the first position in South India.

23 dairies with a total processing capacity of 56.80 lakhs

liters per day, 45 milk chilling centres with chilling capacity of

21.40 lakhs liters per day and 5 milk powder plants with drying

capacity of 100 M.T. per day are functioning. During the year, 2015-

16, an average of 34 lakh liters of milk per day was sold, of which

an average of 19 lakhs liters was marketed in Bangalore city alone.

To meet the demands of consumers, milk products like good

life, UHT Milk, curds, butter, ghee, flavoured milk (in 8 flavours),

mysorepak, nandiniburfi, rasgulla, badam powder, jamoon mix,

yogurt and basin laddu are produced and sold. In addition to these

other products like sweet curds, butter milk, ice cream and kunda are

being produced and sold under the brand name “Nandini”.

Karnataka State Co-operative Milk Producers Federation has

covered the entire State under dairy development and is paying

higher price to the milk producers. It is actively participating in

Yashaswini Farmers Health Scheme by enrolling more number of

milk producers under this Scheme. Nandini Sperm station has

bagged the 2nd best A grade semen station award in the country

during the year 2005-06. KMF is successfully implementing the

Central Govt. Scheme, such as clean Milk Production, RKVY,

NPDD, and State Govt. scheme like Rs.4/- milk incentive,

Amrutayojane. DCS staff 20 paise incentive & Ksheerabhagya

yojane.

53

14. House building Co-operative Societies

Karnataka State Cooperative Housing Federation Ltd.,

Bangalore

The Karnataka State Co-operative Housing Federation Ltd.,

Bangalore, was registered in the year 1950. The Federation has been

assisting the House Building Co-operative Societies by providing

loans for the construction/purchase of houses and developing

layouts.

As on 31-03-2016 the Federation has got share capital of

Rs.603.31 lakhs and working capital of Rs. 9454.00 lakhs.

During the year 2015-16, the Federation has advanced loan

of Rs. 316.00 lakhs to the House Building Cooperative societies and

to the direct members, for construction of 85 houses. The percentage

of loan recovery against the demand for the year 2015-16 is 80%

(tentative).

Number of House Building Co-op. Societies in the State at the

end of March 2016

Sl.

No.

Districts Working Defunct Liquidation Total

1 Bangalore North 210 1 23 234

2 Bangalore Central 186 8 35 229

3 Bangalore South 56 0 7 63

4 Bangalore Rural 6 0 8 14

5 Ramanagar 9 0 5 14

6 Tumkur 30 2 12 44

7 Kolar 11 0 17 28

8 Chikkaballapur 6 1 10 17

54

Sl.

No.

Districts Working Defunct Liquidation Total

9 Chitradurga 10 0 9 19

10 Davanagere 20 0 11 31

11 Shimoga 31 0 10 41

12 Mysore 224 1 15 240

13 Mandya 27 0 11 38

14 Chamarajanagar 4 0 3 7

15 Hassan 27 0 6 33

16 Kodagu 1 0 0 1

17 Mangalore 21 1 4 26

18 Udupi 8 0 1 9

19 Chickmagalur 9 1 1 11

20 Belgaum 72 6 26 104

21 Bijapur 23 11 17 51

22 Bagalkot 26 3 6 35

23 Dharwad 104 5 26 135

24 Gadag 24 1 4 29

25 Haveri 13 0 7 20

26 Karwar 14 0 4 18

27 Gulbarga 19 23 24 66

28 Raichur 21 12 6 39

29 Bidar 23 9 11 43

30 Bellary 22 2 12 36

31 Koppal 10 10 1 21

32 Yadgir 3 7 0 10

Total 1270 104 332 1706

55

Particulars about the functioning of House Building Co-

Operative Societies as on 31-03-2016

Sl.

No. Details Number

1 No. of House Building Co-op. Societies in the State 1706

2

Out of Total House Building Co-op. Societies

a) Working

b) Defunct

c) Under Liquidation

1270

104

332

3

Total membership in these societies

a) Members

b) Associate Members

9,16,757

67,626

4 Out of Which SC/ST members 78,117

5

Share Capital (Rs. In crores)

a) From members

b) From Government

49.29

4.97

6 Extent of Land acquired, purchased 17817.90

acres

7 Total sites formed by the societies 3,06,203

8 Sites allotted to the members 2,85,719

9 Out of which the sites allotted to the members

belonging to SC/ST 22,202

56

15. Karnataka Co-operative Poultry Federation Ltd.,

Karnataka Co-operative Poultry Federation was established

on 15-3-1995 and 79 Primary poultry co-operative societies have

been affiliated to the federation as members. The Federation has the

following objectives:

Organization of Primary Poultry Cooperative Societies

throughout the State in order to generate employment among

the educated rural unemployed youth.

Imparting modernized poultry training techniques under

extension activities and also encouraging consumption of

egg & poultry meat.

Poultry disease surveillance and control of diseases.

Rearing and Marketing of Giriraja Chicks.

Creating awareness among the public regarding Avian

Influenza and other emerging diseases through meetings,

seminars, workshops etc., by the State and District Level

Animal Disease Emergency Committee.

16. Other types of Cooperative Societies and Federations:

In the State there are various cooperatives like Women

Cooperative Societies, Labour Contract Cooperative Societies,

Electrical Cooperative Societies, Water Users Cooperative Societies,

Fisheries Cooperative Societies, Solar Cooperative Societies,

Education, Hospital, Transport, Tree Growers and Toddy Tappers

Cooperative Societies etc.,

17. Water Users Cooperative Societies:

There are 3,153 Water Users Cooperative Societies

registered in the State of which 2,876 societies are working.

57

18. Women Cooperative Societies :

In the State 5,735 Women Cooperative Societies are

registered of which 5,127 co-operative societies are functioning.

19. The Karnataka State Cooperative Women Federation Ltd.,

Bangalore:

The Karnataka State Cooperative Women Federation Ltd.,

Bangalore, was registered on 25-11-1992. It is a State Level

Cooperative Institution.

The main objectives of this Federation are as under:

i) Organization and Development of District, Block and Primary

Level Women Cooperative Societies.

ii) To improve the financial position of the members of the District

Women Cooperative Societies and to work for the women

empowerment both in educational and social spheres.

iii) To provide suitable marketing opportunities to the products

manufactured by women Cooperatives.

iv) To give wide publicity to the activities of the women

cooperatives.

v) To conduct seminars, meetings and workshops for the members

of women cooperatives and to provide a forum for discussion on

the problems faced by the women cooperatives.

vi) To start working Women`s Hostel to provide accommodations

for working women.

Membership:

The membership of the State Women Cooperative Federation is

open to all District Level Women Multipurpose Cooperative

Societies, Women Cooperative Banks and other Women

Cooperative Societies.

58

20. Rural Electrical Cooperative Society:

In the State 5 Rural Electrical Cooperative Societies are

registered of which 2 are working. The Rural Electrical Cooperative

Society Ltd., Hukkeri, was registered in 1969 and as on 31-03-2016

it has share capital of Rs.5.95 crores and working capital of Rs.

87.14 crores. As on 31-03-2016, it has provided electricity to 113

villages, 13 hamlets and is functioning as an alternative to

HESCOM in power distribution.

21. Transport Cooperative Societies:

There are 17 Transport Cooperative Societies registered of

which 10 societies are working in the State. Of these, Transport

Cooperative Society Ltd., Koppa, registered in 1991 owns 76 buses

and has 292 individuals as its members. The society covers 60% of

the routes in rural areas of Chickmagalur District.

22. Fisheries Cooperative Societies:

There are 622 fisheries cooperative societies registered of

which 558 societies are working in the State.

Karnataka State Co-Operative Fisheries Federation Ltd.,

Mysore.

The Karnataka State cooperative fisheries federation was

registered on 02-10-1989 with jurisdiction extending to the entire

State. It has a membership of 275 Fisheries Cooperative Societies.

23. Tree Growers Cooperative Societies:

In the State 18 Tree Growers Cooperative Societies are

registered out of which 10 Societies are working. The said societies

are preserving and developing forest areas in the District.

59

24. Labour Cooperative Societies

There are 117 contract labour cooperative societies

registered of which 58 societies are working in the State.

25. Sports Promotion & Development Cooperative Societies,

Chandaragi.

This institution was registered in 1983 to promote sports and

it is a State Level Institution. It has a residential sports school which

provides hostel facilities to 677 students. The institution is running

a school both in Kannada and English Medium from 6th

Standard to

IInd P.U.C.

26. Cooperative Hospitals:

In the State, 15 Cooperative Hospitals are registered of

which 11 are working.

27. Industrial Co-operative Societies

There are 844 Industrial Co-operative Societies in the State

with a membership of 2.44 lakhs and working capital of Rs.

23004.78 lakhs.

28. Large sized Adivasi-Multi Purpose Co-operative Societies

(LAMPS)

There are 25 large sized Adivasi-Multi Purpose Co-operative

Societies working in the State. These societies have been organised

with the objective of improving the social and financial conditions

of the adivasis.

60

29. The Karnataka State Cooperative Federation Ltd.,

Bangalore:

Karnataka State Cooperative Federation Ltd., has an

objective of providing education and training to the personnel

working in the co-operative sector for the healthy development pf

the co-operative movement. Further it provides a wide coverage of

the activities of co-operatives in the State through the media. As on

31-03-2016, 833 training programs have been conducted wherein

35,850 persons are trained, of which 3,773 are women.

News Weekly:

Federation has been publishing ‘Sahakara’ Kannada news

weekly since 48 years. This weekly newspaper contains News and

views on co-operatives, Government Circulars, progress report on co-

operatives, interviews with senior co-operators, information on best

co-operatives and such other items. It has a wide circulation among

the co-operatives, co-operators and the public interested in Co-

operative field. Currently about 12,500 co-operative societies and co-

operators are the subscribers of the weekly.

***********

61

-: Chapter IV :-

Amendments to the existing legislation

During the year 2015-16 amendments have been made to the

Karnataka Co-operative Societies Rules, 1960 and the Karnataka

Souharda Co-operative Rules, 2004 which have respectively come

into effect from 06-06-2015 and 20-06-2015.

Departmental Schemes evaluation

Among the schemes implemented by the department during

the year 2014-15, the following schemes were identified for

independent evaluation study.

1. Interest subsidy on crop loan

2. Interest subvention for loan to self help groups.

In respect of the above schemes Terms of reference to

undertake independent evaluation has been prepared and the

approval of the Karnataka Evaluation Authority has been obtained.

The Karnataka Evaluation Authority after duly following all the

procedures has entrusted the work of evaluation of “Interest

subsidy on crop loan” to Siri Institute of Rural Development,

Mandya and that of “Interest subvention for loan to self help

groups” to Andhra Pradesh Industrial and Technical Consultancy

Organization ( APITCO) Ltd., Hyderabad. The evaluation work is

under progress. No new schemes were identified for evaluation

during the year 2015-16.

62

-: Chapter V :-

Human Resources Management and Administrative Activities

Statement showing the sanctioned and filled posts and vacancies

of the Department

(as on 31-03-2016)

Sl.

No. Name of the Post Pay Scale

Posts

Sanctioned

Working

Position

Vacancy

Position

1 2 3 4 5 6

1 Registrar of Cooperative

Societies 37400-67000 1 1 0

2 Addl. Registrar of

Cooperative Societies 48900-63600 25 25* 0

3 Joint Registrar of

Cooperative Societies

(ADM .& DEV.)

40050-56550 1 1 0

4 Joint Registrar of

Cooperative Societies 40050-56550 63 40 23

5 Deputy Registrar of


6 Assistant Registrar of

Cooperative Societies 22800-43200 160 127** 33

7 Assistant Engineer 22800-43200 1 1 0

8 Assistant Director 22800-43200 1 0 1

9 Assistant Accounts

Officer

Deputation

Post 1 0 1

10 Coop. Development

Officer 21600-40050 269 184 85

11 Superintendents 20000-36300 90 74 16

12 Senior Inspectors of


63

Sl.

No. Name of the Post Pay Scale

Posts

Sanctioned

Working

Position

Vacancy

Position

1 2 3 4 5 6

13 Asst. Statistical Officer Deputation

Post 1 0 1

14 Inspector of Coop.

Societies 14550-26700 510 41 469

15 Senior Accountant Deputation

Post 3 0 3

16 First Division Assistant 14550-26700 146 81 65

17 Stenographers 14550-26700 48 14 34

18 Senior Typists 14550-26700 16 5 11

19 Typists 11600-21000 114 27 87

20 Senior Drivers 14550-26700 16 8 8

21 Drivers 11600-21000 66 29 37

22 Second Division

Assistant 11600-21000 335 244 91

23 Process Servers 11000-19000 80 49 31

24 Peons 9600- 14550 387 220 167

25 Gardener 9600- 14550 1 0 1

Total 2,635 1,379 1,256

Note:

1) There are 28 officers working in the cadre of Additional Registrar of Co-

operative societies of which 3 officers are working in ex-cadre posts of

other departments.

2) There are 61 officiating officers working in the cadre of Assistant Registrar

of Co-operative societies and 66 officers are working in independent

charge under Rule 32 of KCSR. in the cadre of Assistant Registrar of Co-

operative societies.

64

Number of Officers/ Staff as at the end of 31-03-2016

Posts sanctioned Of which working-

Male

Of which working-

Female

Scheduled Caste

A B C D A B C D A B C D A B C D

140 432 1595 468 89 245 496 172 19 67 243 48 19 69 137 50

Scheduled Tribes No. of officers/ staff who

have retired during 2015-16

Details of outsourced staff

in various cadres

A B C D A B C D Cadre No.

05 23 41 09 14 25 19 23

Typists/

Stenographers 35

Drivers 27

“D” group 22

Details of the officers/ staff who have attended training

programmes during 2015-16

No. of officers/ staff

who have attended

training programmes

within the State

No. of officers/ staff who

have attended training

programmes outside the

State

No. of officers who have

attended training

programmes abroad

394 - -

65

Details of the training Programmes

Sl.

No. Details

No. of

Officers/ Staff

1

Training program on roles of a Public Information Officer

and Appellate authority; recent court orders, Transparency

Act and e-procurement

49

2 Program on “Human Resource development “for officers

of cooperative Department/ organizations 06

3

Training to the JRCS/DRCS and CEOs of DCC Banks

regarding the various schemes and the new schemes

implemented by the Department and RCS-PACS software

80

4 Program on motivation, time management and

management of work to the D group employees 36

5

Training program to the officers of the Department

working as Liquidators on efficiently performing the

duties of a Liquidator

30

6

Training program to the officers regarding the recent

amendments to the Karnataka Co-operative Societies Act,

1959 and Rules, 1960

47

7 Training regarding “filing, enquiry and writing of

orders/decision in quasi-judicial court cases” 28

8

Program on effectively conducting Inquiries and

Inspection under the provisions of Sec 64 and Sec 65 of

the Karnataka Co-operative Societies Act.

29

9 Training to the officers/ officials regarding conduct of

elections of co-operative societies 37

10

Program on HRMS/ Karnataka Financial Code/

Computers/ RTI, KTTP (Transparency Act and e-

tendering) for the officers and employees of the

department.

33

11 Training to the staff on RTI, work pressure management,

time management and efficiently managing the work 19

Total 394

66

Administrative measures and modernization of the Department

to increase efficiency

Direction and Administration-Modernization:-

Budget provision of Rs.15.00 lakhs is provided under this

Scheme for the year 2015-16 and the Government has released the

entire amount. The amount of Rs.15.00 lakhs is spent for

modernization of the Department through implementation of 05

programmes.

The amount has been released for the purchase of

U.P.S/Generator to the office of the Deputy Registrar of Co-

operative Societies, Madikeri, purchase of stationery items, 3

Copiers and 3 Copier cum Printer cum Fax machines, AMC of

Computers, Printers, Office intercom, Mike Systems, Generator and

Duplicating Machines at the Head Office,. Similarly amount has

been released to all the sub-ordinate offices for purchase of

stationery and AMC.

Administrative inspections conducted by the Division / District

level officers

For the year 2015-16, the annual target for conducting

administrative inspection by the Division/ District level officers was

1,360 co-operative societies, 358 offices totaling to 1,718. Out of

which inspections of 873 co-operative societies and 178 offices

totaling to 1,051 were conducted with a progress of 61.17%.

Punitive actions against officers/ officials.

As on 01-04-2015, there were 21 disciplinary cases pending

against officers / officials of the Department. During the period

from 01-04-2015 to 31-03-2016, 07 new cases have been ordered

and 14 cases have been disposed leaving a balance of 14 cases at the

end of 31-3-2016.

67

Chapter VI :-

Performance relating to Audit observations and number of

questions answered in the assembly

Paras Reported in the Local Audit inspection report

Year

Audit

Paras o/s

at the

beginning

of the year

Fresh

paras

added

during

the year

Total

Paras

No. of paras

to which

compliance

has been

submitted

No. of

paras

dropped

No. of

paras o/s

at the

end of

the year

1 2 3 4 5 6 7

2013-14 105 26 131 131 27 104

2014-15 104 39 143 143 35 108

2015-16 108 28 136 136 2 134

Paras reported in the report of the Comptroller and Auditor

General of India

Year

CAG

Paras o/s

at the

beginning

of the

year

Fresh

paras

added

during

the year

Total

paras

No. of

paras to

which

compliance

has been

submitted

No. of

paras

dropped

No. of

Paras

o/s at

the end

of the

year

1 2 3 4 5 6

7

2013-14 2 - 2 2 - 2

2014-15 2 - 2 2 - 2

2015-16 2 - 2 2 - 2

68

Number of questions answered in the Legislature :-

During 2015-16 in both the houses of the State Legislature, -

165 questions in the Legislative Assembly and 153 questions in the

Legislative Council were raised by the Hon’ble members and reply

to all these questions have been submitted.

Court cases against the Department in various courts/Tribunals.

1) In the Hon’ble Supreme Court of India as on 31-3-2016,

9 SLP’s were pending.

2) In the Hon’ble High Court of Karnataka as on 31-3-

2016, 259 writ petitions were pending.

3) In the Hon’ble Karnataka Administrative Tribunal as on

31-3-2016, 34 applications were pending.

4) As on 31-3-2016 there are 704 appeals pending before

the Hon’ble Karnataka Appellate Tribunal.

Right to Information Act

As on 01-04-2015, there were 74 applications pending under

the Right to Information Act. During the period from 01-04-2015 to

31-03-2016, 3167 applications were received. Out of the total 3241

applications, 3192 applications were disposed off and as on 31-03-

2016 there were 49 applications pending for disposal.

As on 01-04-2015, there were 11 appeals pending under the

Right to Information Act. During the period from 01-04-2015 to 31-

03-2016, 155 appeals were received. Out of these appeals, 166

appeals were disposed off and as on 31-03-2016 there were 16

appeals pending for disposal.

69

RELATED LINKS

DEPARTMENT OF CO-OPERATION http://www.sahakara.kar.gov.in

GOVERNMENT OF INDIA http://india.gov.in

GOVERNMENT OF KARNATAKA http://www.karunadu.gov.in

DEPARTMENT OF AGRICULTURE

AND CO-OPERATION, GOVT. OF

INDIA

http://agricoop.nic.in

DEPARTMENT OF CO-OPERATIVE

AUDIT

http://sahakaradarpana.kar.nic.in

YESHASVINI http://www.yeshasvini.kar.nic.in

KARNATAKA APEX BANK http://karnatakaapex.com

KARNATAKA MILK FEDERATION http://www.kmfnandini.coop

IFFCO http://www.iffco.in

DEPARTMENT OF AGRICULTURAL

MARKETING

http://krishimaratavahini.kar.nic.in

DEPARTMENT OF AGRICULTURE http://raitamitra.kar.nic.in

DEPARTMENT OF HORTICULTURE http://www.horticulture.kar.nic.in

STATE WARE HOUSING

CORPORATION

http://www.karnatakawarehousing.in

GOVERNMENT OF INDIA

DIRECTORY

http://goidirectory.nic.in

NABARD http://www.nabard.org

E-mail IDs

PRINCIPAL SECRETARY [email protected]

OSD [email protected]

RCS [email protected]

ADDITIONAL RCS (CREDIT) [email protected]

ADDITIONAL RCS (H&M) [email protected]

ADDITIONAL RCS (C&M) [email protected]

ADDITIONAL RCS (I&D) [email protected]

JOINT REGISTRAR (ADM & DEVP.) [email protected]

JOINT REGISTRAR (ICDP) [email protected]

JOINT REGISTRAR (UBC) [email protected]

JOINT REGISTRAR (LEGAL CELL) [email protected]

DEPUTY REGISTRAR (SQUAD) [email protected]

DEPUTY REGISTRAR & GA TO RCS [email protected]

***********

http://india.gov.in/

http://www.iffco.in/

mailto:[email protected]







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