SAHAKARA SINDHU
Department Of Cooperation, Government of Karnataka

DEPARTMENT OF CO-OPERATION

• Introduction
• Hundred years of Cooperation movement
• Principles of Co-operation
• Cooperative movement in Karnataka
• Department of Co-operation
• Secretariat
• Organization Chart
• Vacancies

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 encompasses 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.

       The Department of Co-operation is a vital Department of the Government of Karnataka. The Department functions in close co-operation and co-ordination with various other Departments connected with the implementation of socio-economic plans and schemes.

       The Department of Co-operation overseas the administration and functioning of various Co-operative Institutions namely Textiles, Sericulture, Industries, Animal Husbandry, Fisheries, Sugar, Horticulture, Agriculture and Irrigation and also assist the societies financially besides providing technical guidance and input. 

HUNDRED YEARS OF COOPERATIVE MOVEMENT:

      The Co-operative Movement in India took birth in 1904 by the enactment of Co-operative Societies Act 1904 and after making a long journey it has entered into the new millennium with lots of hopes and expectations.

      Two movements in the last century had a cascading effect on the well being of the vast population of this country. The independence movement got India rid of foreign yoke. Soon it was realized that political freedom had no meaning unless the country enjoyed the fruits of sustained economic growth. Independence movement was the movement of the people. And so has been the cooperative movement.

       Enshrined in both the movements had been the urge and aspirations of the teeming millions of India – small and marginal farmers, landless laborers, workers, members of the weaker sections of the community viz. handloom weavers, fishermen, artisans etc. who were otherwise steeped in poverty and deprived of the means and fruits of an economic upsurge for centuries. The post independence era witnessed the saga of human struggle not only to better the lot of the poor people but also to ensure equitable distribution of wealth and in this endeavour cooperatives had a crucial role to play. People from various classes assembled under the umbrella of cooperatives. Be it green (agriculture), white (dairy), yellow (poultry) and blue (fishery) revolutions, their success depended on the vast cooperative network spread in the nook and corner of the country. The age old institution of money lenders crumbled under the weight of credit cooperatives and banking institutions in rural and urban conglomerations. Spread of the movement in non-credit sector also followed in a big way.

      Right from the fifties of the 20th century, the country charted its course of economic development and chose mixed economy as the means to attain the goals. Whereas public and private sectors were assigned specific roles., the cooperative movement which has not been designated as a distinct sector even today had to fight its own battle and carve out a niche for itself in the economy. State participation in the financial set up of cooperatives became an integral part of the deliberate policy of the Government to promote cooperatives. Agricultural development became a major plank of the government. Cooperatives were to support the massive programmes for increasing agriculture production and creating suitable post- harvest facilities. The wide network of credit movement was assisted by non-credit cooperatives in various areas of socio-economic activities.

      There was mushroom growth of cooperatives in credit and non-credit areas. Both credit and non-credit cooperatives had various tiers extending from primary to national levels. There was massive diversification of cooperatives in all spheres of the economy be it primary, secondary and tertiary sectors. Today Cooperative Movement in India is the largest in the world. The movement has permeated all walks of life i.e., agriculture, horticulture, credit and banking, housing, agro-industries, rural electrification, irrigation, water harvesting, labour, weaker sections, dairy, consumers, public distribution system, tribals, international trade, exports, agri-business, human resource development, information technology.  

 PRINCIPLES OF CO-OPERATION

• Voluntary & Open Membership
         Cooperatives are voluntary organizations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on the basis of gender, social status, racial, political ideologies or religious consideration.
  
• Democratic Member Control
        Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these cooperatives are responsible and accountable to their members.
  
• Member's Economic Participation
         Members contribute equitably and control the capital of their cooperative democratically. At least a part of the surplus arising out of the economic activity would be the common property of the cooperatives. The remaining surplus could be utilized benefiting the members in proportion to their shares in the cooperative.
  
• Autonomy & Independence
        Cooperatives are autonomous self-help organizations controlled by their members. If cooperatives enter into agreement with other organizations including government or raise capital from external sources, they do so on the terms that ensure democratic control by members and maintenance of cooperative autonomy.
  
• Education,Training & Information
         Cooperatives provide education and training to their members elected representatives and employees so that they can contribute effectively to the development of these institutions. They also make the general public, particularly young people and leaders aware of the nature and benefits of cooperation.
• Cooperation among cooperatives
        Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through the available local, regional, national and international structure.
• Concern for Community
        Co-operatives work for the sustainable development of their communities through policies approved by their members.

  The Mysore Co-operative Societies Act 1959 is the first legislation in our state pertaining to the co-operative societies and has come into being from 25-05-1960.

Karnataka occupies third position in the co-operative movement in India. It has been playing an important role in improving the economic condition of people involved in co-operative movement and has spread to almost all sectors of economic activities, both in rural and urban areas.

  Karnataka is the first state where in Agricultural loans through co-operatives are available at 3% which, is  the lowest in the country. This facility is also extended to the loans borrowed by weavers and fishermen.

 Loans are available, if borrowed through co-operatives, for self-help groups at 4%. Government of Karnataka is subsidizing the co-operatives by providing Interest- subsidy through budgetary provisions.

  Since the implementation of the recommendations of Prof.Vaidyanathan Committee through MOU with Government of India, NABARD and the state Government in March 2008, the role of the state Government in respect of Agricultural credit structure Institutions has metamorphised from the role of regulator, supervisor to the role of being a Friend, Philosopher and Guide. All statutes, circulars, orders which were coming in the way of day to day internal affairs of the institutions have been withdrawn.

A new era of co-operative credit structure through self-governance and independent decision making has come in to being and it is hoped that the co-operatives will become professionally efficient and financially viable in the years to come.The state has witnessed a tremendous growth in the Cooperative Sector.

Basic Statistics

Co-operative institutions have played a vital role in the socio-economic development of the country, 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 of globalization.

Cooperative Movement is wide spread in all the developmental sectors like Credit, Marketing, Consumers, Silk Industry, Dairy, Fishery, Horticulture, Sugar, House Building, Constructions of godown

DEPARTMENT OF CO-OPERATION

Vision

        To promote and encourage the growth of self-reliant, autonomous and economically viable co-operatives through active participation of the members

Mission

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 to promote the economic interest and welfare of the people.
3. to serve as a friend, philosopher and guide to all types of co-operatives.

Objective of the department

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.

Objectives And responsibility  Department's

1. The primary objective of the Department of cooperation is to see that genuine cooperatives are organized and managed on the basis of sound cooperative principles for the promotion of economic interest and welfare of the people, and to render guidance and assistance for development of cooperative movement in the state.
2. Administering proper supervision and control on the registered co-operative societies based on the above objectives as per the provisions of the Karnataka co-operative societies Act and Rules.
3. Enforcement of the Government policy pertaining to Agricultural credit, Agricultural produce, Horticulture, Fisheries, Dairy, their marketing and processing  and implementation of various schemes.
4. Providing share capital, loan, interest subsidy to the members of the  credit, marketing, consumers, industries and various co-operative societies but also extending govt.  guarantee to loans availed by state level Institutions,
5. Providing financial assistance for the upliftment of the SC/ST backward classes and minorities through the special schemes formulated by Government so that they can not only participate in the co-operative societies activities, obtain the various benefits but also come to the main stream of co-operative movement crossing the  threshold.
6. Provide technical guidance for the implementation of the schemes formulated by the Government.
7. Collection and compilation of statistics of department as required by Central, State Government, RBI, NABARD etc.
8. To exercise proper control and supervision on the administration of various cooperative societies within the legal frame work of cooperative Acts and Rules.                                                                                                      

Regulatory Functions of the department

1. To organize and register various types of cooperative societies on the basis of principles of cooperation, formulating and registration of byelaws and rules for the effective functioning of these societies.
2.  To ensure that the general body meetings and if required, special general body meetings are conducted, approve the  resolutions made in these meetings within the frame work of cooperative Acts and Rules.
3. Appointment of election officer for conducting the election in order to elect the board members to the cooperative societies.
4. To supervise all types of cooperative societies and to ensure that these societies functions as per the provisions of Act and Rules.
5. Superceding and reorganization of Board in case the elected board functions against the provisions of the Act,Rules and Byelaws.
6. In addition to the disposal of the disputes arising with respect to constitution, working and management of cooperative societies also to perform statutory and quasi-judicial functions.
7. To perform statutory function by executing awards, decrees, orders and decisions pertaining to loan recovery.
8. To conduct Enquiry and Inspection with regard to irregular activities in co-operative societies.
9. Revival, Liquidation  and cancellation of registration of defunct societies.
10. Inspection and control of business of chit fund organizations, Money lenders, Pawn Brokers   under Chit fund Act, Money lenders Act, Pawn Brokers Act and Rules.
11. Register societies and institutions under Karnataka Societies Registration Act 1960 and to implement the Act.   

Acts and Rules implemented by Co-operation Department.

1. Karnataka Co-operative Societies Act, 1959 and Rules, 1960.
2. Karnataka Moneylender Act, 1961 and Rules, 1965.
3. Pawnbroker Act, 1961 and Rules, 1966.
4. Chit fund Act, 1982. and Chit fund (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 Rules 2004.
8. The Karnataka Prohibition Of Charging Exorbitant Interest Act, 2004.
9. Multi - State Co-operative Act (in part).
10. Karnataka Debt Relief Act 2018.
11. Karnataka Societies Registration Act 1960 and Karnataka Societies Registration Rules 1691.

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.

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 functions as the Registrar General under Karnataka Societies Registration Act 1960 with effect from 07-05-2008.  He exercises statutory powers under the KCS 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.,

Organization chart of Co-operation Department

State, Regional, District and Sub-divisional level:

        The powers of the Registrar have been delegated to the Additional Registrars and Joint Registrars in the Head Office, 4 Regional Joint Registrars of Co-operative Societies, 33 District Registrars of Co-operative Societies and 52 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-operatives, amend their byelaws, inspect the co-operatives, function as quasi judicial authorities and perform all other statutory duties.

        The District Deputy Registrars  also function under the control of the Zilla Panchayats in so far as the implementation of the District sector  Plan Schemes are concerned.  The sub-divisional Assistant Registrar 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 120 Co-operative Development Officers and 94 Co-operative Inspectors to assist the sub-divisonal Assistant Registrars.

Head Office

        The Head Office located in Bangalore, has been structured on functional and sectoral lines with reference to the types of co-operative societies. The department is headed by the Registrar of Co-operative Societies. He is the Chief Administrator of the department. He is assisted by four Additional Registrar of Co-operative Societies, four Joint Registrar of Co-operative Societies, three Deputy Registrar of Co-operative Societies, one statistician of the cades of Assistant Director and Assistant Registrar of Co-operative Societies and supporting staff.

Head Office consists of the following wings:-

1. Credit.
2. Consumers and Marketing.
3. Housing and Miscellaneous.
4. Industrial  And Dairy Co-operatives.
5. Administration and Development.
6. Urban Banks.
7. Enquiry and Inspections.
8. Integrated Co-operative Development Project.

The first four wings are headed by Additional Registrar of Co-operative Societies and the other wings by Joint Registrar of Co-operative Societies.

        All these wings assist Registrar of Co-operative Societies in managing the department with reference to various provisions of KCS Act and rules and the implementation of various departmental programs sponsored by the government. The Registrar of Co-operative Societies has not only to administer the Co-operative societies Act and Rules but also to implement the Karnataka money lenders Act and Rules, the Karnataka Pawn Brokers Act and rules and Chit fund Act and rules.

Organizational Structure of the Registrar of Cooperative Societies, in Karnataka,

District Office

Sub-Divisional Office

Taluk level Office

Organization chart of Co-operation Department at Field Level

Statement showing the sanctioned,working and vacancies as on 31-03-2019 of the Department