Kollam DCB Director Board dissolved

Kollam DCB Director Board dissolved; decision to be challenged

The Kerala High Court has adjourned the hearing on a petition challenging the Cooperative Societies Ordinance 2012 dissolving the director boards of district cooperative banks and appointing administrators to manage the affairs of banks. The UDF government has decided to promulgate the ordinance according to the recommendations of a committee headed by Sri.Karakulam Krishna pillai. Mr:Pillai said that the they have not dissolved the committee but only reinstalled the voting right of all primary societies The petition was filed by the president of Kollam District Cooperative Bank and two other members of the bank. The petitioners sought to quash the ordinance and issue a directive to the state government and other respondents to desist from dissolving the director board and appointing administrators. Similar ordinance was brought in by the LDF government in 2007 and that resulted in the dissolution of the director board including the Kollam District Co-operative Bank. When the petition came up for hearing on Monday, Justice P N Ravindran asked the government pleader to produce a copy of the ordinance on Tuesday. The petitioners contended that the ordinance was illegal and arbitrary. They also alleged that it was brought out with a mala fide intention to topple the existing director boards of the banks and put them under the control of the UDF government.

“All the primary societies and urban cooperative banks have been given voting rights in the district cooperative banks. The new ordinance is against the High Court order upholding the previous LDF government’s decisions to allot voting rights to primary cooperative societies except agricultural credit societies and urban cooperative banks,” the petitioners submitted. They further submitted that they were elected to the directed board in 2010 and their term would end only on July 21, 2013. “Besides, the ordinance has not been published in the gazette so far though it was approved by the Cabinet,” they said.

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