MUMBAI, May 30: Members of cooperative societies are themselves largely responsible for the ongoing troubles of the cooperative movement, believes the joint registrar of Cooperative Societies, Mumbai Division, Sudhir Thakre, one of the key figures in the expose of the cobbler scam followed by the bank scandals.

In an exclusive interview to Express Newsline, the rather low profile Thakre (name spelt in just six alphabets. ``I am a short Thakre'') refused to be photographed, pleaded against eulogy, and brought home certain truths about the working of the cooperative societies.

``Did you know that a maximum of 8000 members among one lakh strong cooperative society, actually vote for its managing committee, though all of them have voting rights?'' he queried. In the case of the Rs 1600 crore cobblers' scam, the illiterate cobblers who actually formed the cooperatives were apparently made to resign and members of the powerful shoe industries took over the managing committee. ``All labour laws were circumvented as employers like Daya and Tejani exploited these cobblers by taking their products and showed that they were not employees but members of the societies,'' Thakre explained.

Unlike company laws where a share holding capacity defines the voting rights, cooperative societies give each person one vote, regardless of the number of shares owned by him or even his contribution to the society. ``Every cooperative society has a general body which then elects the managing committee. But since a maximum of a few thousand actually vote, it is easier for the strong businessman to `keep' a few who then vote for him,'' he said.

``Once elected, there is nobody to question him for five years. Even though all the members on the managing committee have the same powers, and the chairman actually has no statutory authority, all the powers are vested in him, which he could then misuse.''

The office of the joint registrar has at present filed criminal charges against four cooperative banks in the city, apart from the Abhyudaya Bank.(see box) Of these, the 5000 membered Winkar (Weavers') Bank has a Rs nine crore outstanding loan.

Rupees seven crore of which has been given to one single party.

In another bank, of the Rs four crore loan taken, Rs 2.5 crore was loaned to the wife of the chairman. In the Awami Bank, of the working capital of Rs six crore, only one crore was loaned.

The rest was used for purchasing premises. ``The bank had no business to enter into a real estate deal. Obviously the chairman had a personal interest in it,'' Thakre added.

While on vested interests Thakre specifies that none of the banks which are `ill', are so because of loans given to the really needy. ``The poor man will always repay his loan. If not this year, the next year.

"It is money loaned out to the speculator, that is usually not returned,'' he said.

The joint registrar offers a simple panacea: People should take chrge of the cooperatives.

``How long do you think can an administrator manage the affairs of a society? After a year or two, I will have to hold elections.''

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.