Govt directs strict action against defaulters in Cooperative Societies

The Delhi Government on Tuesday held a high-level meeting of office-bearers and members of Credit and Thrift Cooperative Societies at the Delhi Secretariat to review key challenges facing the cooperative sector and outline measures to strengthen institutions and expand their public outreach.

Chaired by Cooperation Minister Ravindra Indraj Singh, the meeting focused on issues such as loan recovery, management of defaulters, cases of dual membership, administrative delays and the need to take the cooperative movement closer to the general public. The minister said cooperation is not just an economic activity but a system built on social trust and collective participation, stressing that the success of cooperatives depends on transparency, regular dialogue and shared decision-making.

The Minister made it clear that strict action would be taken against defaulters, irregular interest practices and dual membership. He said uniform and clearly defined rules would be implemented across all cooperative institutions, adding that honesty and accountability must be reflected in day-to-day functioning to strengthen public confidence in the cooperative system.

Members attending the meeting suggested that cooperative institutions should adopt a more proactive role in social welfare and that coordination between the government and cooperatives should be improved. Responding to these suggestions, the minister said the Cooperation Department would be made more participatory, responsive and accountable.

Addressing concerns raised by the institutions, the minister assured timely action on several key issues, including identification of dual memberships, strict action against defaulting members, effective implementation of provisions under Sections 52 and 71 of the Delhi State Cooperative Societies Act, faster disposal of pending loan recovery cases, time-bound membership of eligible institutions in the Delhi State Cooperative Bank, and strengthening the department’s recovery mechanism.

He also announced that regular meetings between the department and the advisory board of cooperative institutions would be held every 15 days to ensure continuous coordination and quicker resolution of issues. The minister said the government is working on developing new cooperative initiatives, including cooperative stores and employment-oriented models, in which existing institutions will play a significant role. These initiatives, he added, are aimed at strengthening cooperatives while ensuring affordable and quality services for residents of Delhi.

Referring to the long-standing history of the cooperative movement in the capital, the minister noted that several cooperative institutions in Delhi have been operating for more than 50 years, reflecting their credibility and institutional strength. He said newly formed cooperatives must carry this legacy forward by adhering to transparency, discipline and integrity.