BHOPAL : A meeting of the state cabinet, chaired by Chief Minister Shivraj Singh Chauhan, here on Tuesday, decided that the Registrar, Cooperative Societies would initiate the process for the liquidation of State Cooperative Agriculture and Rural Development Bank and all 38 District Cooperative Agriculture and Rural Development Banks as they were in ‘inactive’.
The action will be taken under the Madhya Pradesh Cooperative Societies Act 1960. Following liquidation of these banks, their employees would be accommodated in state’s cooperative banks and other cooperative institutions.
These banks have a cumulative NPA of Rs 670 crore. The defaulters will be asked to repay the principal amount in three installments by September 30, 2015, January 31, 2016 and June 30, 2016. and the interest will be waived off. Once the principal amount is repaid, the government will release the land of the farmers mortgaged against the loan.
The principal amount received under this one-time settlement scheme from farmers will be returned by the banks to the state government. The process of clearing liabilities worth Rs. 249 crore of the banks and annual management expenditure of Rs. 61 crore will be undertaken after obtaining permission from the Finance Department.
In another major decision, the cabinet decided to amend the Store Purchase Rules, pulling off 100 of the 139 items from the list of goods to be mandatorily purchased by government departments from Laghu Udyog Nigam. These items will be purchased through open e-tendering.
The cabinet also decided to amend renewal rules of public service centres set up for effective implementation of Public Services Delivery Guarantee Act 2010.
A provision will be made to classify public service centres under two categories A and B. Public service centres where over 1000 applications are received on an average will be placed in A category and the remaining in B. The agreements with public service centres performing satisfactorily for the past three years and recommended by e-Governance Society will be renewed for the next three years. In the case of public service centres the work of which has not been satisfactory during the past three years and whose agreements have been revoked by e-Governance Society, new centre operators will be selected for the next three years through open tendering.
