Karnataka ANNUAL REPORT English - 2016-17

1
REGISTRAR OF CO-OPERATIVE SOCIETIES
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 ensconces 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.
COOPERATIVE MOVEMENT IN KARNATAKA
The State has witnessed tremendous growth in the cooperative

sector. Cooperative institutions have played a vital role in the socio-
economic development of the State, 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 and
globalization.
Cooperative Movement is wide spread in all the developmental

sectors like Credit, Marketing, Consumers, Silk Industry, Dairy,
Fisheries, Horticulture, Sugar, House Building, Constructions of
godowns etc.
2
Chapter I :-
Vision
To promote and encourage the growth of self-reliant,

autonomous and economically viable co-operatives through active
participation of the members
Mission
The mission of the department is :-
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 and there by promote the
economic interests and welfare of the people.
3. To serve as a friend, philosopher and guide to all types of co-
operatives.
Objectives
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.
3
Functions
1. Suggest suitable amendments to all the Acts and Rules

administered by the Department.
2. Regulate and guide the co-operative societies as per Co-operative
Act and Rules.
3. Ensure that various developmental schemes pertaining to the co-
operatives are effectively implemented.
4. Reform the process of settling claims under various
developmental schemes.
5. Modernize the office Infrastructure and impart HRD-related
training to all the personnel of the Department.
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 co-operation
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. The Secretary to Government,
Department of Co-operation looks after the working of the Registrar of
Co-operative societies, Co-operative Audit, Agriculture Marketing and
the Karnataka State Warehousing Corporation. The department of co-
operation at the Secretariat is responsible for policy making, planning,
and budgeting and for providing other support services to the co-
operative sector. It provides norms and broad guidelines for
strengthening and consolidating the growth of co-operatives. It liaises
with Planning, Finance and other departments and with the
Government of India. It is the Appellate authority under the KCS Act
4
and Rules. Government is also the appointing and disciplinary

authority in respect of the “A” group officers of these departments.
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
exercises statutory powers under the Karnataka Co-operative Societies
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.,
Regional, District, Sub-divisional and Taluk level:
The powers of the Registrar have been delegated to the

Additional Registrars of Co-operative Societies and Joint Registrars of
Co-operative Societies in the Head Office, 4 Regional Joint Registrars
of Co-operative Societies, 33 Deputy Registrars of Co-operative
Societies of the Districts/ Zone 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-operative
societies, 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 so far as the implementations of the District
5
sector Plan Schemes are concerned. The sub-divisional Assistant

Registrar’s 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 223 Co-operative Development Officers, 155 Co-operative
Senior Inspectors and 79 Co-operative Inspectors working in the
department.
Acts and Rules implemented by Co-operation Department
1. Karnataka Co-operative Societies Act, 1959 and Karnataka Co-

operative Societies Rules, 1960.
2. Karnataka Moneylenders Act, 1961 and Karnataka
Moneylenders Rules 1965.
3. Karnataka Pawnbrokers Act, 1961 and Karnataka Pawnbrokers
Rules 1966.
4. Chit Funds Act, 1982 and Chit Funds (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 Karnataka
Souharda Co-operative Act Rules, 2004.
8. Karnataka Prohibition of charging exorbitant interest Act, 2004.
9. Karnataka Societies Registration Act 1960.
6
Basic Statistics
Sl. 2015-16 2016-17

Particulars 2014-15
No (tentative)
No.of cooperatives 39,627 40,643 41,402
1 Of which
a) working 34,664 35,589 36,345
b) defunct 1,665 1,746 1,706
c) under liquidation 3,298 3,308 3,351
Share Capital (Rs. in crores)

4025.26 4644.18 4,961.74
of which
2 a) Govt 250.39 238.91 228.55
b) Members 3774.87 4405.27 4,733.19
3 Membership ( in lakhs) 223.99 234.65 248.21

Working Capital
4 69,353 86,212 98,364
(Rs. in crores)
Deposits
5 44,698 62,587 64,634
(Rs. in crores)
No. of villages covered by co-
6 100% 100% 100%
operatives %
No. of cooperatives societies
under profit 21,631 23,307 24,619
No. of cooperative societies
7
under loss 13,624 13,514 12,399
No. of co-operative societies
with no profit/ no loss 4,372 3,822 4,384
7
-: Chapter II:-
PERFORMANCE OF THE DEPARTMENT
Allocation and expenditure for the year 2015-16 and 2016-17
under State Sector plan schemes of the year 2016-17
a Name of the scheme and year of Direction & Administration- 125-

introduction Modernisation, 2007-08
b Budget head 2425-00-001-0-01-125

c If Plan, the Central and State 0:100
share is
d Objective of the Programme/ Modernization of the offices,
Project/ Scheme computerization, development of software,
Digitization of office records and providing
Photocopiers, Fax machines, Computers -
peripherals and stationery for office use.
e Estimated benefit and number of Establishing fully equipped offices with
estimated beneficiaries from the latest technology for better communication
programme/project/ scheme and effective administration, which in turn
will enhance the work efficiency of the staff
of the Department.
f) Financing:(Rs in lakhs) :
Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

Capital Revenue Capital Revenue Capital Revenue
1 2 3 4 5 6
- 85.56 - 15.00 - 20.00
g) Expenditure (Rs in lakhs) :

1 2 3 4 5 6
- 84.42 - 15.00 - 5.98
8
h) Physical Achievements: (Units)

Two key Audit observations/Inspection
findings of year 2015-16 (Specify date of
2014-15 2015-16 2016-17 audit/inspection and the reference
number of the Report: Specify, if no
audit or inspection was carried out)/
1 2 3 4
U/S 13 Part-B IV/IIB PR AG(E &RSA)
8 5 2
VS-1/h/2016-17/28-29 dated21-10-2016
a Name of the scheme and year of Technology & Human Resources

introduction Development Fund, 2008-09
b Budget head 2425-00-800-0-01

share is
d Objective of the Programme/ Improving the work efficiency of the
Project/ Scheme officers and staff of the Department by
imparting training programmes on various
sectors.
E Estimated benefit and number of Qualitative training on Departmental
estimated beneficiaries from the programmes and Human Resource
programme/project/ scheme Development (H.R.D) will result in
delivering high quality of service to the
concerned co-operative institutions and
public at large; which will ultimately
result in the effective implementation of
Departmental schemes.

1 2 3 4 5 6
- 12.84 - 5.00 - 10.00
9

1 2 3 4 5 6
- 10.46 - 4.85 - 10.00
h) Physical Achievements (Units)

1 2 3 4
500 394 332 --
Name of the scheme and year of

Co-operative Election Authority, 2013-
a introduction
14
b Budget head 2425-00-004-0-03

If Plan, the Central and State
c 0:100
share is
Objective of the Programme/ In view of the Constitution (97th
Project/ Scheme Amendment) Act, 2011, amendments to
the Karnataka Co-operative Societies Act,
1959 and Karnataka Souharda Societies
d Act, 1997 has been made. An independent
Co-operative Election authority has been
established and Govt. is providing subsidy
to meet the administrative expenses of the
said Authority.
Estimated benefit and number of The Co-operative Election Authority is
estimated beneficiaries from the vested with the superintendence, direction
programme/project/ scheme and control of the preparation of the
e
electoral rolls for, and the conduct of, all
elections to the co-operative societies in
the State. This has ensured the conduct of
10
free and fair elections, Boards being

established and the governance of these
societies by the elected Office bearers.
f) Financing :(Rs in lakhs) :

1 2 3 4 5 6
- 213.91 - 200.00 - 300.00
g) Expenditure: (Rs in lakhs) :

1 2 3 4 5 6
- 106.95 ` 184.32 - 210.54

Two key Audit observations/ Inspection
2014-15 2015-16 2016-17 audit/inspection and the reference number
of the Report: Specify, if no audit or
inspection was carried out)/
1 2 3 4
1 1 1 U/S 15 Part-II SEC-B PR AG(E &RSA) VS-
1/h/2016-17/28-29 dated21-10-2016
a Name of the scheme and year of Interest Subsidy to enable Crop Loans,
introduction 2004-05
b Budget head 2425-00-107-2-41
share is
d Objective of the Programme/ Reduction in the rate of interest on short
Project/ Scheme term agricultural loans to 0% and on
Medium term and Long term agricultural
loans to 3% and as a consequence of the
same the loss to the co-operative institutions
11
is reimbursed by way of interest subsidy as

per the commitment of the Govt.
e Estimated benefit and number of Strengthen the credit delivery system to the
estimated beneficiaries from the farmers and make available easy credit at
programme/project/ scheme concessional rates.

1 2 3 4 5 6
- 62444.35 - 75454.25 - 89124.47

1 2 3 4 5 6
- 62444.35 - 75454.25 - 88046.54

1 2 3 4
U/S 15 Part-II Sec( A-)1 PR AG(E &RSA)
15,87,328 19,72,744 22,58,290
VS-1/h/2016-17/28-29 dated21-10-2016
a Name of the scheme and year of Interest subvention for loans to Self Help
introduction groups (SHG’s), 2007-08
b Budget head 2425-00-107-2-45
share is
12
d Objective of the Programme/ Reduction in the rate of interest on loans to

Project/ Scheme SHGs at 4% and as a consequence of the
same the loss to the co-operative institutions
is reimbursed by way of interest subsidy as
per the firm commitment of the Govt.
e Estimated benefit and number Providing accessible credit through formal

of estimated beneficiaries from financial institutions to members belonging
the programme/ project/ scheme to socially and economically backward
sections of the society, in particular women.
f) Financing (Rs in lakhs) :

1 2 3 4 5 6
- 2000.00 - 6262.75 - 2089.50

1 2 3 4 5 6
- 2000.00 - 6262.75 - 2089.50
h) Physical Achievements (Units----)

1 2 3 4
47,464 1,41,469 75,611 --
13
Name of the scheme and year of Inland Fisheries- Short term loans through
a introduction co-operative banks, 2015-16
b Budget head 2425-00-107-02-41

c 0:100
share is
Objective of the Programme/ To bring in blue revolution in inland fisheries
Project/ Scheme – short term loan up to Rs.1 lakh at 0%
d interest will be provided to inland fish
farmers in the state through co-operative
banks.
Estimated benefit and number Strengthen the credit delivery system to the
e of estimated beneficiaries from inland fish farmers and make available easy
the programme/ project/ scheme credit at concessional rates.

1 2 3 4 5 6
- - - 240.00 - 100.00

1 2 3 4 5 6
- - - - - 2.08

1 2 3 4
- - 44 --
14
Name of the scheme and year of PashuBhagya- Short term loans through
a
introduction co-operative Banks, 2015-16
b Budget head 2425-00-107-02-41
c 0:100
share is
Objective of the Programme/ In Pashu-bhagya scheme, short term loans
Project/ Scheme upto Rs.50000 at 0 % interest will be
provided through cooperative banks on the
d
lines of short term agriculture loans for
providing cattle feed and other maintenance
expenditure.
Estimated benefit and number Providing cattle feed and other
e of estimated beneficiaries from maintenance expenditure make available
the programme/ project/ scheme easy credit at 0 % interest rate.

1 2 3 4 5 6
- - - 1560.00 - 300.00

1 2 3 4 5 6
- - - - - 2.45

1 2 3 4
- - 53 --
15
a Name of the scheme and year of Loan waiver, 2012-13

introduction
b Budget head/ 2425-00-107-2-46
share is
d Objective of the Programme/ Under the scheme, the crop loan principal
Project/ Scheme/ upto Rs.25000/- including interest on it is
waived off to those farmers who have
availed crop loan during 01.08.2011 to
25.07.2012 from co-operative institutions.
e Estimated benefit and number of Relieve the farmers of their loan burden
estimated beneficiaries from the who have suffered on account of drought
programme/project/ scheme in the State.

1 2 3 4 5 6
- 472.82 - 1913.00 - -
1 2 3 4 5 6
- 472.82 - 1581.39 - -

2014-15 2015-16 2016-17 audit/inspection and the reference number of
the Report: Specify, if no audit or inspection
was carried out)/
1 2 3 4
1,832 7,196 - -
16
Name of the scheme and year (TSP)-Establishment of Marketing Infrastructure to

a
of introduction LAMPS Federation, 2004-05
b Budget head 2425-00-108-0-39
c 0:100
share is
Objective of the Programme/ To provide assistance for infrastructure facilities
Project/ Scheme/ such as Computers, FAX machines, Telephone,
d Transport vehicles etc to LAMPS Federation and
LAMPS Societies. Also provide financial assistance
for construction of godowns/ building.
Estimated benefit and number Assist the members of LAMP societies in marketing
of estimated beneficiaries their minor forest produce through efficient means
e
from the programme/ project/ and as a consequence of which, the members &
scheme societies thereby are economically benefited.

1 2 3 4 5 6
- 32.00 - 50.00 - 100

1 2 3 4 5 6
- 32.00 - 50.00 - 100
1 2 3 4
4 4 5 ---
17
Name of the scheme and year Yeshasvini, (Rural and Urban )2003-04,
a
of introduction 2014-15
b Budget head 2425-00-108-0-57
If Plan, the Central and State 0:100
c
share is
Objective of the Programme/ To provide quality health care and improve
Project/ Scheme/ the living standards of rural and urban
d cooperative members, thereby ensuring
overall health and welfare of the co-
operative members
Estimated benefit and number Free medical treatment for 823 types of
of estimated beneficiaries from surgeries to the rural and urban cooperators
e the programme /project/ through 735 network hospitals. Improvement
in health conditions, financial position and
scheme
living standards of the members.
Actual /Accounts 2014-15 Actual /Accounts 2015-16 RE 2016-17
1 2 3 4 5 6
- 6195.00(R) - 9901.00(R) - 17042.72
1000.00(U) 1100.00(U)
Actual /Accounts 2014-15 Actual /Accounts 2015- RE 2016-17
16
1 2 3 4 5 6
- 6195.00(R) - 10115.15(R) - 17042.72
1000.00(U) 841.00(U)
findings of year 2015-16(Specify date
2014-15 2015-16 2016-17 of audit/inspection and the reference
1 2 3 4
1,27,052(R) 1,57,386(R) U/S 15 (1) Part-B IV/IIB PR AG(E

1,94,129 &RSA) VS-1/h/2016-17/28-29
5,648(U) 11,559 (U) dated21-10-2016
18
a Name of the scheme and Enrolment of SC, ST, Backward

year of introduction Class/Minority persons as members of all
types of Cooperatives, 2005-06
b Budget head 2425-00-108-0-58
c If Plan, the Central and 0:100
State share is
d Objective of the The Scheme aims at enrolling people
Programme/ Project/ belonging to SC/ST/BC/ Minorities as
Scheme members in all types of co-operative
societies, thereby enabling them to obtain
the facilities made available by a co-
operative society. Financial assistance
equivalent to the value of one share.
e Estimated benefit and Economically weaker sections of the people
number of estimated belonging to SC/ST/BC/ Minorities will be
beneficiaries from the able to get the facilities made available by
the respective co-operative societies which
programme/ project/ scheme
will uplift them socially/financially.

Actual / Accounts 2014-15 Actual / Accounts 2015- RE 2016-17
16
1 2 3 4 5 6
- 42.40 - - - -

16
1 2 3 4 5 6
- 42.40 - - - -
19

was carried out)/
1 2 3 4
10640 - - -
a Name of the scheme and year Priyadarshini Scheme,2014-15

of introduction
b Budget head/ 2425-00-108-0-72-059
share is
d Objective of the Programme/ To Encourage the participation of more
Project/ Scheme/ women in cooperatives, financial assistance
in the form of share capital is provided to
women to enrol as member and form
women cooperative societies.
e Estimated benefit and number Women will be able to get the facilities
of estimated beneficiaries from made available by the respective co-
the programme/ project/ operative societies which will uplift them
scheme socially/financially.

1 2 3 4 5 6
- 100.00 - - - -

1 2 3 4 5 6
- 100.00 - -
20
h) Physical Achievements : (Units)

1 2 3 4
16756 - - -
a Name of the scheme and Ashakiran Scheme, 2014-15

year of introduction
b Budget head 2425-00-108-0-73-059

c If Plan, the Central and 0:100
State share is
d Objective of the To Encourage the participation of Physically
Programme/ Project/ disabled people in cooperative societies,
Scheme financial assistance in the form of share
capital is provided to Physically disabled
people to enrol and to organise cooperative
societies.
e Estimated benefit and Physically disabled people will be able to get
number of estimated the facilities made available by the respective
beneficiaries from the co-operative societies which will uplift them
programme/project/ scheme socially/financially.

1 2 3 4 5 6
- 100.00 - - - -
21

1 2 3 4 5 6
- 100.00 - - -
number of the Report: Specify, if no audit
or inspection was carried out)/
1 2 3 4
11529 - - -
Name of the scheme and Enrolment of BPL/SC/ST/ Backward Class/

year of introduction Minority/ Women/ physically challenged
a persons as members of all types of
Cooperatives, (A consolidated provision is
made for all the above groups during 2015-16)
b Budget head 2425-00-108-0-58
If Plan, the Central and 0:100
c
State share is
Objective of the The Scheme aims at enrolling people belonging to
Programme/ Project/ BPL/SC/ST/BC/Minorities/women/ Physically
Scheme challenged as members in all types of co-
d
operative societies, thereby enabling them to
obtain the facilities made available by a co-
operative society.
Estimated benefit and Economically weaker sections of the people
number of estimated belonging to BPL /SC /ST /BC/ Minorities
beneficiaries from the /women /Physically challenged will be able to get
e
programme/ project/ the facilities made available by the respective co-
scheme operative societies which will uplift them
socially/ financially
22

1 2 3 4 5 6
- - - 3200.00 - 800.00

1 2 3 4 5 6
- - - 3200.00 - 800.00
Two key Audit observations/Inspection findings
of year 2015-16 (Specify date of audit/inspection
2014-15 2015-16 2016-17 and the reference number of the Report: Specify,
if no audit or inspection was carried out)/
1 2 3 4
- 7,88,919 1,89,074 -
Name of the scheme and year Financial assistance to SC/ ST/ BC/
a
of introduction Minorities Cooperative Societies, 2009-10
b Budget head 2425-00-108-0-62
If Plan, the Central and State 0:100
c
share is
Objective of the Programme/ To provide financial assistance to create
Project/ Scheme infrastructure and assets to Co-operative
d
Societies belonging to SC/ ST/ Backward
Class/ Minority members.
Estimated benefit and number With better infrastructure the beneficiary
of estimated beneficiaries societies will be able to increase their
e
from the programme/ project/ business and thereby achieve their objectives
scheme
23

1 2 3 4 5 6
- 24.00 - 11.00 - 11.00

1 2 3 4 5 6
- 23.96 - 11.00 - 11.00

1 2 3 4
18 10 9 --
a Name of the scheme and year of Financial assistance in the form of Share
introduction Capital to the financially weak
Consumers, Marketing and Processing
Co-operative societies, 2012-13
b Budget head 4425-00-108-0-57-100
share is
d Objective of the Programme/ To provide financial assistance in the form
Project/ Scheme/ of Share Capital to the financially weak
Consumers, Marketing and Processing Co-
operative societies to achieve their
objectives.
24
e Estimated benefit and number The assisted societies will increase their
of estimated beneficiaries from Share capital/ own funds and improve their
the programme/ project/ scheme business activities; helping them to achieve
financial stability.
Actual / Accounts 2014- Actual / Accounts 2015-16 RE 2016-17

15
1 2 3 4 5 6
85.56 - 140.00 - 100.00 -

Actual / Accounts 2014- Actual / Accounts 2015-16 RE 2016-17
15
1 2 3 4 5 6
80.00 - 140.00 - 100.00 -
h) Physical Achievements : (Units)

1 2 3 4
8 14 10
25
a Name of the scheme and year Office building of Department of co-

of introduction operation, 2010-11
b Budget head 4425-00-107-0-11

share is
d Objective of the Programme/ To take up the construction of building
Project/ Scheme premises for the offices of the Co-operation
Dept. wherever the Department owns vacant
sites.
e Estimated benefit and number Offices of the Department of Co-operation

of estimated beneficiaries from will get permanent building of their own,
the programme/ project/ scheme which will result in savings in payment of
building rent.
16
1 2 3 4 5 6
50.00 - - -
g) Expenditure : (Rs in lakhs) :
1 2 3 4 5 6
32.25 - - - - -
1 2 3 4
4 - - -
26
Name of the scheme and year of Loans to Karnataka State Co-operative

a introduction Agricultural and Rural Development
Bank Ltd.
b Budget head 6416-00-190-1-01-395
c 0:100
share is
Objective of the Programme/ Meet the Govt. of Karnataka’s share of 4-
Project/ Scheme 5% for extending term loans to KSCARD
d
Bank Ltd. for onward lending to PCARD
Banks.
Estimated benefit and number of To enable KSCARD Bank to avail
estimated beneficiaries from the refinance facility from NABARD, thereby
programme/project/ scheme the farmers will get long term loans at
e
reasonable rates of interest. This results in
improving their financial position and
living standard..

1 2 3 4 5 6
1200.00 - 500.00 - 500.00 -

1 2 3 4 5 6
400.00 - 500.00 - 500.00 -

1 2 3 4
1,000 1,200 1,200 -
27
Name of the scheme and year of Construction and Maintenance of

a introduction PCARD, TAPCMS and Primary
Agricultural Co-op Societies, 2013-14
b Budget head 2425-00-108-0-70-100
c 0:100
share is
Objective of the Programme/ This is a scheme being implemented from
Project/ Scheme the year 2013-14. Aims at providing
financial assistance for construction of new
buildings and repair/ maintenance of
d
existing buildings of PCARD Banks, Taluk
Agricultural Produce Co-operative
Marketing Societies and Primary
Agricultural Co-op Societies.
Estimated benefit and number of Construction of new buildings and repair/
estimated beneficiaries from the maintenance of existing buildings of the co-
e programme/project/ scheme operative societies will help in the creation
of desirable quality assets to the society.

1 2 3 4 5 6
- 1400.00 - 2424.00 - 1001.00

1 2 3 4 5 6
- 517.50 - 2424.00 - 1000.00
1 2 3 4
170 377 108 --
28
Name of the scheme and year of Financial Assistance for Construction of

a introduction training centres of Karnataka State
Cooperative Federation
b Budget head 4425-00-108-0-73-059
c 0:100
share is
Objective of the Programme/ Construction of 3 training centers at
Project/ Scheme Belgaum, Dharwad, Bangalore under the
d
administration of Karnataka State
Cooperative Federation.
Estimated benefit and number of The construction of modernized training
estimated beneficiaries from the centers will help in imparting effective
e programme/project/ scheme training to the co-operators/ employees of
co-operative societies.

1 2 3 4 5 6
77.01 - 60.00 - -

1 2 3 4 5 6
77.01 - 60.00 - -

1 2 3 4
1 1 --
29

Computerisation of PACS and SHG,
a introduction
2014-15
b Budget head 2425-00-004-0-01

c 0:100
share is
Objective of the Programme/ Development and implementation of a
Project/ Scheme common software solution in the Primary
Agricultural Co-operative Societies
d
(PACS) in the State thereby computerising
their day to day business and financial
transactions. .
Estimated benefit and number of Computerising PACS will help in accurate
estimated beneficiaries from the preparation of interest subsidy claim bills
e programme/project/ scheme from the Govt., maintenance of data and
effective reporting of MIS.

1 2 3 4 5 6
- 211.70 - 245.00 - 500.00

1 2 3 4 5 6
- - - 1.40 - -

1 2 3 4
- - --
30
a Name of the scheme and year of Revival Package For Short Term Co-
introduction Operative Credit Structure
b Budget head 6425-00-108-3-58
c If Plan, the Central and State
0:100
share is/
Objective of the Programme/ To strengthen the short term co-operative
Project/ Scheme credit structure in the State based on the
recommendations of the task force headed by
Prof. A. Vaidyanathan
e Estimated benefit and number This package pertains to 247 PACS coming
of estimated beneficiaries from under the jurisdiction of all DCCBs
the programme/project/ scheme

1 2 3 4 5 6
- 280.65 - - -

1 2 3 4 5 6
- - - - -
h) Physical Achievements :(Units)

was carried out)/
1 2 3 4
- - - ----
31
a Name of the scheme and year of NCDC sponsored Integrated

introduction Cooperative Development Project.
1987-88
b Budget head/ 2425-00-108-0-60-Subsidy
4425-00-108-0-53-share capital
6425-00-108-3-50-loans
c If Plan, the Central and State share 50:50 for subsidy
is 0:100 for share capital
0:100 for loan
d Objective of the Programme/ The Integrated Cooperative
Project/ Scheme Development Project is implemented for
the overall development of the districts
through cooperative efforts. This
scheme aims at strengthening the
infrastructure and financial position of
cooperative societies with a district
level integrated approach. Financial
assistance is provided in the form of
subsidy, share capital and loan
components.
e Estimated benefit and number of Financial assistance is provided for
estimated beneficiaries from the basic infrastructure facilities like margin
programme/ project/ scheme money, working capital and share
capital, encouraging BDP in order to
create assets; economic stability and
overall development of the coop.
societies in the district.
1 2 3 4 5 6
107.03 235.51 - - - -
32

16
1 2 3 4 5 6
- - - - -
h) Physical Achievements : (Units----)
1 2 3 4
- - -
Name of the scheme and year of Financial assistance to buy cleaning and
introduction grading equipments to Primary
a
Agricultural Credit Co-operative
Societies,2015-16
b Budget head 2425-00-001-0-01
c 0:100
share is
Objective of the Programme/ Provide cleaning and grading equipments
Project/ Scheme at the first stage to the Primary
Agricultural Credit Co-operative Societies
d
to enable primary value addition, cleaning
and categorization of agricultural produce
and thereby assist the farmers.
Estimated benefit and number of Will enhance the quality of agricultural
estimated beneficiaries from the produce and due to the value addition the
e programme/project/ scheme farmers will be able to obtain a good price
for their produce.

1 2 3 4 5 6
- - - 300.00 - -
33

1 2 3 4 5 6
- - - 201.98 - -

1 2 3 4
- 187 - -
Name of the scheme and year of Construction of godowns for Primary

a introduction Agricultural Credit Cooperative
Societies under PPP model, 2015-16
b Budget head 2425-00-001-0-01
c 0:100
share is
Objective of the Programme/ Construction of godowns in those Primary
Project/ Scheme Agricultural Credit Cooperative Societies
d
which do not have godowns, with the
participation of public and private sector.
Estimated benefit and number of The godowns will increase the storage
estimated beneficiaries from the capacity and thus assist in storing the
e programme/project/ scheme agricultural produce of the farmers in a
scientific manner.

1 2 3 4 5 6
- - - 500.00 - 80.00
34

1 2 3 4 5 6
- - - 500.00 - 80.00

1 2 3 4
- 115 18 --
a Name of the scheme and year Loan waiver-Failed borewells, 2015-16

of introduction
b Budget head/ 2425-00-107-2-46
share is
d Objective of the Programme/ Waiver of those loans which were disbursed
Project/ Scheme/ to farmers through PCARD Banks for
drilling of bore wells for agricultural
purposes, and which has become overdue on
account of failure of borewells.
e Estimated benefit and number Waiving off the long overdue loans
of estimated beneficiaries from outstanding will enable the farmers to avail
the programme/project/ scheme fresh loans for agricultural purposes at
concessional rate of interest.
35

1 2 3 4 5 6
- - - 200.00 - 263.64

1 2 3 4 5 6
- - - 200.00 - 263.64

Two key Audit observations/Inspection findings
of year 2015-16 (Specify date of audit/inspection
2014-15 2015-16 2016-17 and the reference number of the Report:
Specify, if no audit or inspection was carried
out)/
1 2 3 4
- 831 1431 -
Name of the scheme and year

a Loans to weak DCC Banks
of introduction
b Budget head 6425-00-107-5-09
c 0:100
share is
Objective of the Programme/ Extend financial assistance in the form of
d Project/ Scheme loans to weak District Central Co-operative
Banks and help these banks in their revival.
Estimated benefit and number The assistance will help in meeting the loan
e of estimated beneficiaries from requirement of the famers of the concerned
the programme/project/ scheme districts.
36

1 2 3 4 5 6
- - - 500.00 -

1 2 3 4 5 6
- - - 500.00 -

1 2 3 4
- 1 - -
Name of the scheme and year of Share capital assistance to Karnataka

a introduction State Industrial Co-operative Bank,
2015-16
b Budget head 4860-04-190-5-01
c 0:100
share is
Objective of the Programme/ Sanction of additional share capital to
d Project/ Scheme Karnataka State Industrial Co-operative
Bank for its revival.
Estimated benefit and number of The financial assistance in the form of
estimated beneficiaries from the share capital will assist in the revival of
e programme/project/ scheme the said Bank
37

1 2 3 4 5 6
- - 1000.00 - - -

1 2 3 4 5 6
- - 1000.00 - - -

1 2 3 4
- 1 - -

Interest waiver scheme for defaulter,s
a introduction
loan,2016-17
b Budget head 2425-00-107 2-54
c 0:100
share is
Objective of the Programme/ The objective of the scheme is to waive of
d Project/ Scheme the interest on all types of Overdue
Agricultural loans.
Estimated benefit and number of This scheme will enable fresh lending of
estimated beneficiaries from the short term agriculture loans to such
e programme/project/ scheme farmers and help them in their agricultural
activities
38

1 2 3 4 5 6
- - - - - 12632.71

1 2 3 4 5 6
- - - - - 12469.71

1 2 3 4
-
- - 72583

a introduction Fisheries Loan waiver,2016-17
b Budget head 2425-00-107 2-54

c 0:100
share is
Objective of the Programme/ The objective of the scheme to waive off
Project/ Scheme the outstanding loans along with interest
amounting to Rs.479.03 lakhs availed by
d
Fisheries Co-operative Societies under 1st
and 2nd Stage of NCDC Scheme for
inland fisheries.
39
Estimated benefit and number of This will benefit 1 federation ,4 societies

estimated beneficiaries from the and 44 fishermen members and enable to
e programme/project/ scheme avail fresh loans

1 2 3 4 5 6
- - - - - 479.03

1 2 3 4 5 6
- - - - - 439.49

1 2 3 4
- - 43 -
Name of the scheme and year of Special grants to primary Agricultural

a introduction Cooperative Society. (Kanaginahala),
2016-17
b Budget head 2425-00-107-2-54
c 0:100
share is
Objective of the Programme/ To rejuvenate strengthen agricultural co-
d Project/ Scheme operative society in kanaginahala of gadag
district.
40
Estimated benefit and number of To rejuvenate strengthen agricultural co-

estimated beneficiaries from the operative society in kanaginahala of gadag
e programme/project/ scheme district.

1 2 3 4 5 6
- - - - - 100.00

1 2 3 4 5 6
- - - - - 100.00

1 2 3 4
- - 1 -

Differential Share amount of SC/ST
a introduction
Beneficaries 2016-17)
b Budget head 2425-00-108-0-58

c 0:100
share is
Objective of the Programme/ This is new scheme for the year 2016-17.
Project/ Scheme The Government had taken decision to
d
compensate the unpaid share amount in
respect of SC/ST members to make them
41
eligible for voting in the elections of

Cooperative societies held during the year
2014-15, the demand of which had arisen
on account of the hike in the share capital
owing to the amendments to the byelaws
of the cooperative societies The
differential share amount in respect of the
SC/ST members which was deemed to
have been paid will be reimbursed to such
co-operative societies.
Estimated benefit and number of SC/ST Members of the society will get the
e estimated beneficiaries from the voting rights.
programme/project/ scheme

1 2 3 4 5 6
- - - - - 1003.00

1 2 3 4 5 6
- - - - - 962.62
1 2 3 4
- - 3,00246 -
42

Share capital Assistance to Raichur and
a introduction
Davangere DCC Bank.
Budget head
b 4425-00-107-0-15
4425-00-107-0-16
c 0:100
share is
Objective of the Programme/ Extend financial assistance in the form of
Project/ Scheme share capital to Raichur and Davangere
d
District Central Co-operative Banks and
help these banks in their revival.
Estimated benefit and number of The share capital assistance will help in
e estimated beneficiaries from the meeting the loan requirement of the
programme/project/ scheme famers of the concerned districts..
1 2 3 4 5 6
- - - - 600.00 -
1 2 3 4 5 6
- - - - 600.00 -

1 2 3 4
- - 2 -
43
Sources of Income of the Department:

Since the Department of Co-operation is considered as a
"Development Department", the sources of income of the Department
are not many and the progress made during the last two years are
shown as under.
Receipts year wise
(Rs. in lakhs)
Sl. 2015-16 2016-2017
Particulars (As at end of
N0. Jan-17)
1. Interest from Co-operatives 565.61 262.18
2. Dividend credited by Coops 148.95 155.52
3. Copying charges 9.12 9.55
4. Execution fee 227.71 482.29
5. Fees under M.L. 355.74 192.08
6. Fee under Chit Fund rules 130.84 93.34
Registration fees of co-operative
7. societies/Societies and Amendment 71.69 1035.25
of Bye-law fees
8. ABN fees & other items 123.45 273.66
9. Registration fee under Souharda 20.21 16.28
10. Fee collected under K.P.M.R Act. 26.34 22.35
11. Fee collected under KACOMP Act 65.63 43.59
12. Leave Salary Contribution 3.91 0.05
Assistance from NCDC towards
13. Expenditure on schemes sponsored 2.62 1.44
by them
14. Cost of Staff under Rule 441 177.41 108.98
Fee paid to receive Certified Copies
15. under Karnataka Co-operative 0.97 4.60
Societies Rules-1960
Total 1930.20 2701.16
44
Souhardha Co-operatives:
As on 31-3-2017 there are 4,001 Souhardha societies registered under

Souhardha Act 1997, the breakup of which is as below-
1) Souhardha Urban co-op Banks : 18

2) Credit souhardha co-op : 2387
3) Multipurpose souhardha : 1307
4) Others : 289
-------
Total 4001
Cooperatives undertaking e-Stamping business : 1023
Money Lenders/Pawn Brokers/Chit Funds :-
As on 31-3-2017 there are 16672 money lenders/ financial

institutions, 8734 pawn brokers functioning in the State and the licence
fee paid by these institutions during the year 2016-17 is Rs.180.29
lakhs. In accordance with Section 28 of the Karnataka Money Lenders
Act, 1961 the Government Notification dtd.28-8-2003 specifies the
maximum rate of interest to be levied by the above institutions i.e 14%
for secured loans and 16% for unsecured loans per annum. As on 31-3-
2017, 1223 Chit companies are functioning in the State. A sum of
Rs.73.00 lakhs has been remitted as fees to the Government during the
year 2016-17.
45
Enquiry and Inspection
Enquiries under sec 64 of KCS Act, 1959:
As on 31-3-2017, 88 enquiries were pending and during the

period 1-4-2016 to 31-3-2017, 46 fresh enquiries were ordered. Out of
the total 141 enquiries ordered, 53 enquiries were completed and 88
enquiries are pending, of which 56 are pending for less than one year
and 32 are pending for more than a year.
Inspections under sec 65 of KCS Act, 1959
As on 31-3-2017, 44 inspections were pending and during the

period 1-4-2016 to 31-3-2017, 44 inspections were newly ordered. Out
of the total 121 inspections, 77 inspections have been completed and
44 inspections are pending of which, 36 are pending for less than one
year and 8 are pending for more than a year.
Agricultural Co-operative Credit Structure
In the short term credit structure, out of 5463 PACS in the

State 5230 PACS are functioning. In addition to this, there are 21
District Cooperative Central Banks (DCCB) with 716 branches.
Karnataka State Co-operative Apex Bank is functioning as State level
financial institution.
Karnataka State Co-operative Agriculture and Rural
Development Bank (KSCARD) at the State level and 177 Primary
Cooperative Agriculture and Rural Development Banks at the taluk
level to cater the long term credit needs in the two tier credit delivery
system.
46
The National bank for Agriculture and Rural Development

(NABARD) provides refinance to the Apex bank and KSCARD Bank
on the loans disbursed by them.
Agricultural loan disbursement and Kissan credit cards

Agricultural Loans disbursement from 01-04-2016 to 31-03-2017
( Rs in crores)
Out of which Out of which
Loans for New Loans to SC/ST
S.No Particulars Number Amount
members members
No. Amt No. Amt
1 Short term
loan 2284243 10769.00 108887 442.81 300109 1217.31
2 Medium
term loan 30012 692.78 18888 369.52 2701 35.35
3 Long term
loan 30581 440.41 18019 236.17 2453 31.12
Total 2344836 11902.19 145794 1048.50 305263 1283.78
The funds involved by various institutions in the Short term

agricultural loans disbursed through PACS are as follows:
Sl.No Name of the Institution Funds Involved

( Rs. In crores)
1 NABARD 4805.00
2 APEX Bank 1225.87
3 DCC Banks 4337.25
4 PACS Own funds 173.51
5 Commercial Bank 227.37
Total 10769.00
47
The funds involved by various institutions in the

ST Agri Loans disbursed through PACS (RS.in
Crores)
227.37
173.51
NABARD
4337.25
APEX BANK
4805
DCC BANK
PACS own fund
Commercial Bank
1225.87
Performance of short term, medium term and long term credit

structure in Karnataka from 2014-15 to 2016-17
( Rs.incrores)
Short term Medium term Long term Total
Year Target Achieve Target Achiev Target Achiev Target Achieve Perce
ment ement ement ment ntage
(%)
2014-15 10000.00 9285.99 400.00 292.95 300.00 317.66 10700 9896.60 92.49
2015-16 10000.00 10235.63 400.00 373.79 238.00 262.50 10638 10871.92 102.19
2016-17 11000.00 10769.00 1000.00 692.78 600.00 440.41 12600.00 11902.19 94.46
48
Disbursement of agricultural loans during the

past 3 years (Achievement as against target in (%)
,0
2016-17, 2014-15,
94.46 % 92.49%
2014-15
2015-16
2016-17
2015-16
102.19 %
During the year 2016-17, the short term (ST), medium term (MT) and
long term (LT) loans disbursed by the co-operative credit system in the
State was Rs. 10769.00 crores, Rs. 692.78 crores and Rs. 440.41 crores
respectively, thereby achieving progress of 94.46% as against the
annual target.
The scheme of disbursing loans to the farmers through Kissan

Credit Cards was started from the year 1997-98. As on 31-03-2017,
2227506 KCC cards has been distributed of which 2203587 KCC
cards holders are covered under Personnel Accident Insurance scheme.
Recovery of loans:
The comparative position of recovery of short, medium and
long term loans under the cooperative credit system in the state for the
years from 2014-15 to 2016-17 is presented in the following table.
49
(Rs.in crores)
Short term loan Medium term loan Long term loan
Year %of Collec- % of Collec- % of
Demand Collection Balance Demand Balance Demand Balance
Recy tion Recy tion Recy
2014-15 7445.51 7242.95 202.56 97.28 308.13 276.22 31.91 89.64 589.17 304.09 285.08 51.61
2015-16
9757.32 9594.06 163.26 98.33 210.18 182.18 28.00 86.68 590.69 218.58 372.11 37.00
2016-17
9954.19 9368.72 585.47 94.12 427.23 316.71 110.52 74.13 638.07 258.41 379.66 40.49
RECOVERY IN PERCENTAGE OF ST MT & LT LOANS
Short term
97.28 98.33 94.12 loan % of
89.64 86.68 recovery
74.13
Medium term
51.61 loan % of
37 40.49
recovery
Long term
loan % of
recovery
2014 15 2015 16 2016 17
I. Interest subsidy on Agricultural Loans disbursed at 0 & 3%:

The scheme of advancing agricultural short, medium and long
term loans to the farmers at the rate of interest of 3% through
Cooperative Credit Institutions has been implemented from
01.04.2008. The interest rate on loans upto Rs.3 lakhs has been
reduced to 1% during 2011-12. Since 01.04.2012 the interest rate on
loans disbursed uptoRs. 1 lakh is reduced to 0% and on entire loan
above Rs.1 lakhs upto Rs.3 lakhs at 1%. The differential rate of
interest is reimbursed by the Government to the Cooperative
Institutions by way of interest subsidy.
During the year 2013-14 the interest rate on loans disbursed
uptoRs. 2 lakh has been reduced to 0% and the entire loan above Rs.2
lakhs upto Rs.3 lakhs is disbursed at the rate of 1%. Further during the
50
year 2014-15 the limit of agricultural loans disbursed at 0% has been

increased to Rs.3 lakhs, which was continued in the year 2015-16 and
2016-17 also.
In the year 2016-17, Rs. 89124.47 lakhs was provided for

implementation of this scheme. The Government has released Rs.
88046.54 lakhs and the entire amount is released through DCC Banks
towards the claims of 2258290 beneficiaries. During the said period,
out of the amount released Rs.5199.89 lakhs was spent under the
special component plan towards the claims of 216432 SC beneficiaries
and Rs.3294.95 lakhs was spent under the Tribal Sub-Plan towards the
claims of 103840 ST beneficiary members.
Budget allocation in the said scheme during the last 3 years

(Rs. in lakhs)
Sl. Budget Funds released Out of which
Year
No. allocation by Gok SCP TSP
1 2014-15 62444.35 62444.35 2379.16 1811.38
2 2015-16 75454.25 75454.25 3669.50 3287.00
3 2016-17 89124.47 88046.54 5199.89 3234.95
II. Loan Waiver -2012 Scheme

Short term agricultural loan up to Rs.25,000 borrowed from
agricultural co-operative credit societies during the period 1-8-2011 to
25-7-2012 and has remained outstanding as on 25-7-2012 has been
waived off along with interest.
During the said period, in case of loans borrowed above

Rs.25,000 and have remained outstanding as on 25-07-2012, subject to
the repayment of the loan amount over and above Rs.25000 with in
the due date or 30-6-2013, which ever is earlier, the Principal amount
of Rs.25,000 and interest on it has also been waived.
In the year 2012-13, budget provision of Rs.1140.00 crores has
been made of which Rs.940.00 crores has been released to the co-
operative institutions in favour of 4.03 lakh farmer members. During
the year 2013-14 out of the budget provision of Rs.2338.65 crores, the
51
Government has released the entire amount, which has in turn

benefitted around 10.61 lakh farmer members. and during 2014-15, the
budget provision of Rs. 4.73 crores has been released to 1,832
beneficiaries. Further during 2015-16, the budget provision of Rs.
19.13 crores has been made and released Rs.15.82 crores to concerned
institutions on behalf of 7196 beneficiaries.
III. Formation, Fresh Finance and Repeat Finance of Self help

groups
(Rs.in crores)
Group Formation Fresh Finance
Target Achievement
Year Target Achievement
No Amt No Amt
2014-15 10000 11368 19779 132.30 10887 103.24
2015-16 6000 11442 11723 111.75 9361 102.47
2016-17 12000 11419 12000 130.00 8834 169.44
No. of SHGs formed

(Achievement as against target)
15000
11368 11442 12000 11419
10000
10000
6000
5000
0
2014-15 2015-16 2016-17
TARGET ACHIEVEMENT
52
Repeat Finance Total Loans

Target Achievement Target Achievement
Year
No Amt No Amt No Amt No Amt
2014-15 40221 596.89 26417 544.68 60000 729.19 37304 647.92
2015-16 28277 598.25 24568 521.82 40000 710.00 33929 624.29
2016-17 32000 630.00 24046 547.12 44000 760.00 32880 716.56
Loans advanced to SHGs

(Achievement as against target)
(Rs.in crores)
729.19 710 760
800 716.56
647.92 624.29
600
400
200
0
2014-15 2015-16 2016-17
TARGET ACHIEVEMENT
Interest subsidy to Self Help Groups :-
The scheme of advancing loans at interest rate of 4% through

primary agricultural credit societies to Self Help groups (SHGs) in
Karnataka has been implemented from 01.04.2007. The differential
rate of interest is being reimbursed as interest subsidy by the
Government to the co-operative societies. Interest subsidy at the rate
of 8.25% and 7.5% to PACS and DCC Banks respectively has been
provided on loans disbursed during the year 2013-14 and recovered
during 2015-16. Budget allocation of Rs.6262.75 lakhs has been
provided for the year 2015-16. During the year 2016-17 Rs.2089.50
lakhs has been released to cooperative institutions on behalf of 75611
SHG groups.
53
Budget allocation during last 3 years in the above scheme
(Rs in lakhs)
Sl. Funds released by
Year Budget allocation
No Govt
1 2014-15 2000.00 2000.00
2 2015-16 6262.75 6262.75
3 2016-17 2089.50 2089.50
IV. Assistance for Construction and Repairs of Buildings of

PCARD Banks, TAPCMS and Primary Agricultural Credit co-
operative Societies
 Under the said Scheme, Rs.5.25 crores is released to 96 co-

operative societies during the year 2014-15.
 During the year 2015-16 Rs.24.24 crores of assistance has
been released to 407 cooperative societies.
 During the year 2016-17 Rs.10.00 crores has been released to
108 co-operative societies
V. Scheme for providing assistance to primary Agricultural

cooperative societies for Purchase of Agricultural Cleaning and
Grading machines.
Under the said Scheme, Rs.2.02 crores has been released to
187 PACS to purchase Cleaning and Grading machines, there by
providing better marketing facility to members of the PACS.
VI. Scheme for providing assistance to primary Agricultural

cooperative societies for construction of godowns
Under the said Scheme, During the year 2015-16 Rs.5.00

crores has been released to 115 PACS to have their own godown in
the ratio of 70:30 contribution from Government and PACS to have at
54
least 100 metric ton of gowdown.. During the year 2016-17 Rs.80.00
lakhs has been released to 18 cooperative societies.
In order to give relief to farmers suffering due to severe

drought during 2015-16, and 2016-17 Government has announced
two schemes to help the farmers in reducing their financial burden.
VII. Interest waiver Scheme on Postponement of Installments of

Medium and Long term Agricultural loan for one year
Under the said scheme, Government has accorded sanction for
the postponement of the re-payment of regular medium-term and long-
term agricultural loan installments by one-year for agricultural loans
which were disbursed after 2004 and the installments of these loans
fall due during the year 2015-16 by the farmers to the cooperative
banks. During the year 2016-17 Rs. 45.08 crores has been released to
cooperative institutions on behalf of 2.05 lakhs farmers.
VIII. Interest waiver on Overdue ST,MT and LT Agricultural

loans:
Under the said scheme, Government has waived the interest

on Over due principal of Short term, Medium term and long term
Agricultural loans as on 30-9-2015 , provided that farmers repay the
principal amount within 31-03-2017.
During the year 2016-17 Rs. 124.69 crores has been released to
cooperative institutions on behalf of 72583 farmers
IX Loan waiver of failed wells of farmers borrowed loan from

Primary Agricultural and Rural Development Banks.
Government has waived loans of 1046 farmers in Primary Agricultural

and Rural Development Banks, who have borrowed loans for the
purpose of digging wells and released an amount of Rs.263.64 lakhs
for this purpose.
55
X. Yeshasvini Co-Operative Farmers’ Health Care Scheme
Yeshasvini Co-operative Farmers’ Health Care Scheme is an

unique health care Scheme which was started for the first time in India
for the benefit of co-operative farmers. The scheme has been
successfully providing quality health care to the members of the co-
operative societies and their family members for the past 14 years.
 Any member of a co-operative society who has completed 3
months of his admission as a member of co-operative society
can enroll himself and his family members under Yeshasvini
scheme by paying meagre annual contribution of Rs.300/- and
can avail cashless treatment under 823 surgical procedures in
General Ward. The SC/ST members have to pay a contribution
of Rs.50/- only and the remaining amount of Rs. 250/- is
subsidized by the Govt.
 From a new born baby to a person in his lifetime can become a
member subject to the eligibility norms. The maximum limit of
treatment in Rural Yeshasvini per member is Rs.1.25 lakhs for
single admission & for multiple admissions is Rs.2.00 lakhs in
the same year.
 Yeshasvini Scheme was also extended to the members of
Urban Co-operatives from 1st June, 2014. Under the Urban
Yeshasvini Scheme the general category members have to pay
annual contribution of Rs.710/-; and the SC/ST members have
to pay Rs.110/- only and the remaining amount of Rs.600/- is
subsidized by the Govt.
 Under Urban Yeshasvini the maximum limit of treatment per
person for single admission is Rs.1.75 lakhs and for multiple
admission is Rs.2.50 lakhs in the same year.
The scheme also provides the following medical benefits to its

members.
1. The outpatient consultations at discounted rates.

2. Clinical investigations at discounted rates.
56
3. Treatment for 823 procedures including dog bite, electrical shock,

snakebite, bull gore, drowning, accidental wounds by agricultural
implements, Ortho surgeries & hip replacement, general delivery &
new born baby care treatment in Network Hospitals with general
ward facility.
Besides providing facilities under Yeshasvini scheme to co-

operative farmers/weavers/ fishermen and their families, the Scheme is
also extended to family members of Self-help Groups organized by co-
operatives and Self-Help Groups doing transactions with co-operative
societies and co-operative Banks.
During the year 2016-17, 43.73 lakh members have enrolled

under the Scheme, out of which 1.94 lakh members have undergone
surgical treatment at network hospitals at a cost of Rs.317.82 crores
and 2.72 lakh members have been provided outpatient treatment. The
Government has provided budget provision of Rs.170.43 crores for the
implementation of Yeshasvini Scheme during the year 2016-17.
Chapter III :-
Performance of the State level cooperative Federations :

1.Karnataka State Co-operative Apex Bank Ltd., Bangalore
The Karnataka State Co-operative Apex Bank, established in

1915 is earning profit since inception. As on 31-03-2017 the bank has
own funds of Rs. 1,009.83 crores, working capital of Rs.16,077.84
crores and deposits of Rs. 7,367.83 crores.
1. Karnataka State Co-operative Agricultural & Rural

Development Bank Ltd.,
The Karnataka State Co-operative Agriculture and Rural

Development Bank raises resources for meeting its objectives by way
57
of direct loan from NABARD. As on 31-03-2017 the Bank has share

capital of Rs. 63.92 crores, of which the Government’s share is Rs.
4.45 crore and has a working capital of Rs. 2315.11 crores.
2. Urban Co-operative Banks

Urban Co-operative cater to the needs of non agricultural
credit. The Urban Co-operative Banking Sector in the State has
achieved good progress in the Banking Sector and has acquired third
place in the country. As on 31-03-2017 there are 248 Urban Co-
operative Banks which are functioning with a membership of 24.36
lakhs members, Rs.1073.80 crores of share capital and working capital
of Rs.34892.62 crores
3. Women Urban Co-operative Banks
Among the above Urban Co-operative Banks, there are 28

banks organized exclusively by women of which 24 are functioning.
The organization and development of women co-operative banks has
occupied the top place in the country.
4. The Karnataka State Co-operative Urban Banks Federation
Ltd., Bangalore.
The Karnataka State Co-operative Urban Banks Federation

registered during the year 1965 with Primary Urban Co-operative
Banks as its members, is providing institutional assistance to its
members. There are two Joint Registrars of Co-operative Societies
U/R 441 exclusively to hear disputes pertaining to Urban Banks.
5. The Karnataka State Credit Co-operative Societies Federation

Ltd., Bangalore
The Karnataka State Credit Co-operative Societies

Federation was registered on 2-11-2004. As on 31-3-2017, 750 Non
Agricultural Credit Co-operative Societies have become its members.
The Federation is imparting short term programmes on income tax,
58
audit, establishing separate courts for recovery of over due loans,

suggesting measures for protecting members deposits etc. The
federation also provides guidance in redressing problems faced by
member societies.
6. Co-operative Marketing Societies
The co-operative marketing structure in the State functions under the

2-tier system. At the State level the Karnataka State Co-operative
Marketing Federation functions as the Apex Institution and the
Agricultural Produce and Marketing Co-operative societies function at
the taluk level.
7. (a) The Karnataka State Co-operative Marketing Federation

Ltd., Bangalore
The Karnataka State Co-operative Marketing Federation was

registered on 11-11-1943 under the Karnataka co-operative societies
Act. In the initial years the Federation was involved in the distribution
of Coffee seeds, Sugar, Clothes, Cement and other consumer items. In
the subsequent years the Federation has involved itself in procuring
and distributing of agricultural inputs essential to the farmers such as
fertilizers and insecticides and also purchase of agricultural produce
from the farmers.
The major activities of the Federation are supplying fertilizers

and pesticides necessary to the farmers through co-operative societies,
under the Minimum price support Scheme of the Government, Market
intervention Scheme and through its own funds purchase of
agricultural produce from the farmers and construction of godowns in
important centers of the State and thereby providing storing facility for
the agricultural produce.
In order to ensure timely supply of fertilizers to the farmers, the

Government has implemented the Fertilizer Buffer Stock Scheme from
59
the year 2008-09 through the Karnataka State Co-operative Marketing

Federation. This has facilitated a business turnover of Rs. 5000 crores
to the Federation through marketing of 62.26 lakh tonnes of fertilizers,
which has augmented its financial position. The Government has also
extended guarantee to the Marketing Federation for raising loans for
purchase of fertilizers to the tune of Rs. 600 crores from the Banks.
The Federation has 483 co-operative societies as its members

with total share capital of Rs.619.00 lakhs and working capital of Rs.
960.49 lakhs. During the year 2016-17 the turnover in respect of
fertilizer distribution is Rs.23142.00 lakhs and that of agricultural
produce purchase is Rs 1025.33 lakhs.
7. (b) Agricultural Produce Co-operative Marketing Societies
There are 179 Taluk Agriculture produce Co-operative

Marketing Societies working in the State. The area of operation of
these societies extends to a taluk and they function at the taluk
headquarters. The main objectives of these societies are to procure
agricultural produce from the farmers and enable marketing of these
produce thereby ensuring right price for the agricultural produce,
construction of godowns for storage of these agricultural produce.
Along with this implementation of the food ration scheme of the
Govt., distribution of ration to hostels/ prisons and marketing of
fertilizers, insecticides, agricultural implements are their other
objectives. Apart from these societies there are five specialized
Marketing Societies dealing with Commercial Crops like arecanut etc.,
As at the end of 2016-17, these 179 co-operative societies

have 4457 co-operative societies and 319355 individuals as its
members. The total share capital is Rs. 3339.81 lakhs, (of which
Government Share capital is Rs.1282.03 lakhs), working capital is
Rs.65435.93 lakhs and business turnover is Rs. 133428.34 lakhs.
60
8. Processing Cooperative Societies
For processing of agricultural and horticultural produce such as

Rice, Dal, Oil, Cotton, Coffee, Arecanut, fruits, processing units are
established in the Cooperative sector.
Out of these (1) CAMPCO Ltd., Mangalore (Arecanut and

Cocoa Marketing Processing Cooperative Society) (2) COMARK Ltd.,
(Coffee) Hassan (3) Rubber, Marketing and Processing Cooperative
Society Ltd., Mangalore have been registered under the Multistate
Cooperative Societies Act 1984/2002.
Important Areca Marketing and Processing Cooperative Societies

in the Areca growing Districts of the State are as below
1. Karnataka State Cooperative Arecanut Marketing Federation Ltd.,

Shimoga.
2. The Totagars Cooperative Sale Society Ltd., Sirsi
3. The Malnad Areca marketing Cooperative Society Ltd.,Shimoga
4. The Areca Processing and Sales Cooperative Society Ltd., Sagar
5. Hassan Valaya Arecanut Growers Co-operative Society Ltd.,
Hassan.
In the State, there are Rice Mills which have been established by the
TAPCMS. Kodagu Coffee Growers Cooperative Society is registered
on 02-01-1956 for processing of coffee.
9. The Karnataka Cooperative Oil Seeds Grower's Federation,

Bangalore
The Federation has only four members, viz, three regional oil
seed growers cooperative unions working at Chitradurga, Hubli and
Raichur and NDDB. The regional unions have a total membership of
352 Oilseeds growers Cooperative Societies with 1.46 lakhs farmers.
As on 31-03-2017, the Federation has share capital of Rs.179.12 lakhs
61
and working capital of Rs.3408.76 lakhs and business turnover during

the year 2016-17 is Rs.27161.29 lakhs and has earned a net profit of
Rs.357.22 lakhs.
10. The Karnataka State Cooperative Horticulture Marketing

Federation Ltd., Bangalore
The Federation was registered on 25-10-96. The main objective of the

Federation is to develop and encourage horticulture, supply of
horticulture inputs to the farmers, procurement and marketing of
produce. To avail better marketing facilities for the Horticulture
products like vegetables and fruits and to establish processing units
and also provide guidance to district level HOPCOMS for the
marketing inter district/inter state. As on 31-03-2017, the society has
share capital of Rs.11.50 lakhs, working capital of Rs.1272.37 lakhs
and earned a net profit of (tentative) Rs.9.56 lakhs
11. Horticulture Producers Cooperative Marketing and

Processing Scoiety Ltd., Bangalore (HOPCOMS)
Horticulture Producers Co-operative Marketing and Processing

Society Ltd., Bangalore (HOPCOMS) registered in 1959 has at present
251 selling points and 07 procurement centres. It procures
horticultural produce from the growers at reasonable prices and
arranges for grading and marketing to the consumers at reasonable
prices. As on 31-03-2017, the society has 6,097 ‘A’ class members,
’B’ class (Government Share)-1 and ’C’ class 409 members with
share capital of Rs.227.00 lakhs, working capital of Rs.219.00 lakhs
and earned a net profit of Rs.107 lakhs
12. Consumer Co-operatives
In the State, consumer co-operatives are working in 3 stages viz.,

1) The Karnataka State Co-operative Consumers Federation Ltd.,
Bangalore at the State level.
62
2) The District Central Co-operative Wholesale Stores at the

district level.
3) The Primary Consumer Co-operative Societies at the Primary
level.
12 a) The Karnataka State Co-operative Consumer's Federation
The Federation which was registered in the year 1964 has 28

members. It has 4 Janatha Bazaars at Bangalore and 6 Janata Bazaars
and 9 branches in other districts. For the year 2016-17, the Federation
has share capital of Rs. 269.00 lakhs, (of which Government Share
capital is Rs. 257.99 lakhs), it has Rs. 1716.15 lakhs of working
capital and business turnover of Rs. 215.00 Crores. During the year
2016-17 the Federation has earned a profit of Rs. 424.00 lakhs.
12) b) District Central Co-operative Wholesale stores
There are 26 working District Central Co-operative Wholesale

Stores in the State having 44041 induvidual members and 2375 co
operative societies members with a share capital of Rs. 301.22 lakhs
(of which Government Share Capital is Rs. 129.37 lakhs) and Rs.
2639.03 lakhs working capital. The said stores have made a business
turnover of Rs. 10027.33 lakhs and have earned a profit of Rs. 167.49
lakhs and as on 31-03-2017 they have an accumulated loss of Rs.
233.70 lakhs.
12 c) Primary Consumers Cooperative Societies
There are 1223 Primary Consumers Co-operative Societies

working in the State having 452146 members. As on 31-03-2017,
these societies have a share capital of Rs.1935.23 lakhs (of which
Government share capital of Rs.675.63 lakhs) and working capital of
Rs.7138.08 lakhs. These co-operative societies have undertaken
controlled/ non-controlled business turnover of Rs.10799.18 lakhs and
63
have earned a profit of Rs.625.37 lakhs and as on 31-03-2017 it has

accumulated loss of Rs.344.01 lakhs.
13. Karnataka State Co-operative Milk Federation Ltd.,
Karnataka Co-operative Milk Producers Federation Ltd.

(KMF), a co-operative apex body established in 1984, is implementing
dairy development activities since 3 decades in the entire State through
14 district cooperative milk unions in co-ordination with NDDB,
ushering prosperity in the lives of rural milk producers.
As at the end of March-2017 15188 dairy co-operative

societies (DCS) have been organised covering 21846 villages of 172
taluks in the area of operation of 14 district cooperative milk unions,
of which 13658 DCS are functioning and 99% of them are in profit.
There are 24.00 lakhs farmer members in these DCS, out of which
8.48 lakhs are women members.
DCS are procuring milk from the member producers twice a

day throughout the year. The average milk procurement per day was
65.48 lakh kgs during 2016-17. The surplus milk is converted into
milk products. The Federation occupies second position in the country
as far as milk procurement by co-operatives is concerned and occupies
the first position in South India.
23 dairies with a total processing capacity of 56.80 lakhs litres per day
22 milk chilling centrs with chilling capacity of 23.90 lakhs liters per
day and 5 milk powder plants with drying capacity of 100 M.T. per
day are functioning. During the year, 2016-17, an average of 34.01
lakh liters of milk per day was sold, of which an average of 18.11
lakhs liters was marketed in Bangalore city alone.
To meet the demands of consumers, milk products like good

life, UHT Milk, curds, butter, ghee, flavoured milk (in 8 flavours),
mysore pak, nandiniburfi, rasgulla, badam powder, jamoon mix,
64
yogurt and basin laddu are produced and sold. In addition to these
other products like sweet curds, butter milk, ice cream and kunda are
being produced and sold under the brand name “Nandini”.
Karnataka State Co-operative Milk Producers Federation has

covered the entire State under dairy development and is paying higher
price to the milk producers. It is actively participating in Yashaswini
Farmers Health care Scheme by enrolling more number of milk
producers under this Scheme. Nandini Sperm station has bagged the
2nd best A grade semen station award in the country during the year
2005-06. KMF is successfully implementing the Central Govt.
Scheme, such as clean Milk Production Programme and State Govt.
scheme like Amrutayojane.
14. House building Co-operative Societies
Karnataka State Cooperative Housing Federation Ltd.,

Bangalore
The Karnataka State Co-operative Housing Federation Ltd.,

Bangalore was registered in the year 1950. The Federation has been
assisting the House Building Co-operative Societies by providing
loans for the construction/purchase of houses and developing layouts.
As on 31-03-2017 the Federation has got share capital of Rs.

557.61 Lakhs and working capital of Rs. 8668.25 Lakhs.
During the year 2016-17 the Federation has advanced loan of

Rs. 331.48 Lakhs to the House Building Co-operative Societies and to
the direct members, for construction of 64 houses. The percentage of
loan recovery against the demand for the year 2015-16 is 80% and
2016-17 is 82 % (tentative)
65
Number of House Building Co-op. Societies in the State at the end

of March 2016
Sl. Districts Working Defunct Liquidation Total

No.
137 1 19 157
1 Bangalore 1
101 0 10 111
2 Bangalore 2
52 4 7 63
3 Bangalore 3
168 6 19 193
4 Bangalore 4
9 0 8 17
5 Bangalore Rural
9 0 5 14
6 Ramanagar
29 2 13 44
7 Tumkur
11 0 14 25
8 Kolar
9 1 9 19
9 Chikkaballapur
10 0 9 19
10 Chitradurga
24 0 9 33
11 Davanagere
31 0 9 40
12 Shimoga
237 4 16 257
13 Mysore
29 0 8 37
14 Mandya
5 0 1 6
15 Chamarajanagar
27 1 6 34
16 Hassan
66
Sl. Districts Working Defunct Liquidation Total

No.
1 0 0 1
17 Kodagu
20 2 3 25
18 Mangalore
8 0 1 9
19 Udupi
10 0 1 11
20 Chickmagalur
69 10 25 104
21 Belgaum
23 4 24 51
22 Bijapur
23 5 7 35
23 Bagalkot
106 5 24 135
24 Dharwad
24 0 5 29
25 Gadag
11 2 8 21
26 Haveri
13 0 4 17
27 Karwar
19 20 27 66
28 Gulbarga
18 14 6 38
29 Raichur
17 13 13 43
30 Bidar
20 10 7 37
31 Bellary
10 7 4 21
32 Koppal
2 4 12
33 Yadgir 6
113 325 1724
Total 1286
67
Particulars about the functioning of House Building Co-Operative

Societies as on 31-03-2017
Sl.
Details Number
No.
1 No. of House Building Co-op. Societies in the State 1,724
Out of Total House Building Co-op. Societies

a) Working 1,286
2 b) Defunct 113
c) Under Liquidation 325
Total membership in these societies

3 a) Members 9,49,315
b) Associate Members 69,392
Total 10,18,707
Out of Which SC members 63,383
4
Out of Which ST members 22,357
5 Share Capital (Rs. In lakhs)
a) From members 6,758.05
b) From Government 16.18
21,450.05
6 Extent of Land acquired, purchased
acres
7 Total sites formed by the societies 3,08,238
8 Sites allotted to the members 2,89,731

Out of which the sites allotted to the members
9 20,099
belonging to SC
Out of which the sites allotted to the members
10 10,011
belonging to ST
68
15. Karnataka Co-operative Poultry Federation Ltd.,
Karnataka Co-operative Poultry Federation was established on

15-3-1995 and 112 Primary poultry co-operative societies have been
affiliated to the federation as members. The Federation has the
following objectives:
 Organization of Primary Poultry Cooperative Societies
throughout the State in order to generate employment among
the educated rural unemployed youth.
 Imparting modernized poultry training techniques under
extension activities and also encouraging consumption of egg
& poultry meat.
 Poultry disease surveillance and control of diseases.
 Rearing and Marketing of Giriraja Chicks.
 Creating awareness among the public regarding Avian
Influenza and other emerging diseases through meetings,
seminars, workshops etc., by the State and District Level
Animal Disease Emergency Committee.
16. Other types of Cooperative Societies and Federations:
In the State there are various cooperatives like Women

Cooperative Societies, Labour Contract Cooperative Societies,
Electrical Cooperative Societies, Water Users Cooperative Societies,
Fisheries Cooperative Societies, Solar Cooperative Societies,
Education, Hospital, Transport, Tree Growers and Toddy Tappers
Cooperative Societies etc.,
17. Water Users Cooperative Societies:
There are 3,118 Water Users Cooperative Societies registered

in the State of which 2,859 societies are working.
69
18. Women Cooperative Societies :
In the State 4911 Women Cooperative Societies are registered

of which 4296 co-operative societies are functioning.
19. The Karnataka State Cooperative Women Federation Ltd.,

Bangalore:
The Karnataka State Cooperative Women Federation Ltd.,

Bangalore, was registered on 25-11-1992. It is a State Level
Cooperative Institution.
The main objectives of this Federation are as under:
i) Organization and Development of District, Block and Primary

Level Women Cooperative Societies.
ii) To improve the financial position of the members of the District
Women Cooperative Societies and to work for the women
empowerment both in educational and social spheres.
iii) To provide suitable marketing opportunities to the products
manufactured by women Cooperatives.
iv) To give wide publicity to the activities of the women cooperatives.
v) To conduct seminars, meetings and workshops for the members of
women cooperatives and to provide a forum for discussion on the
problems faced by the women cooperatives.
vi) To start working Women`s Hostel to provide accommodations for
working women.
Membership:
The membership of the State Women Cooperative Federation is

open to all District Level Women Multipurpose Cooperative Societies,
Women Cooperative Banks and other Women Cooperative Societies.
70
20. Rural Electrical Cooperative Society:
In the State 11 Rural Electrical Cooperative Societies are

registered of which 10 are working. The Rural Electrical Cooperative
Society Ltd., Hukkeri, was registered in 1969 and as on 31-03-2017 it
has share capital of Rs.6.30 crores and working capital of Rs. 90.00
crores. As on 31-03-2017, it has provided electricity to 113 villages,
13 hamlets and is functioning as an alternative to HESCOM in power
distribution.
21. Transport Cooperative Societies:
There are 13 Transport Cooperative Societies registered of

which 06 societies are working in the State. Of these, Transport
Cooperative Society Ltd., Koppa, registered in 1991 owns 76 buses
and has 295 individuals as its members. The society covers 62% of
the routes in rural areas of Chickmagalur District.
22. Fisheries Cooperative Societies:
There are 695 fisheries cooperative societies registered of

which 632 societies are working in the State.
Karnataka State Co-Operative Fisheries Federation Ltd., Mysore.
The Karnataka State cooperative fisheries federation was

registered on 02-10-1989 with jurisdiction extending to the entire
State. It has a membership of 278 Fisheries Cooperative Societies.
71
23. Tree Growers Cooperative Societies:
In the State 16 Tree Growers Cooperative Societies are

registered out of which 08 Societies are working. The said societies
are preserving and developing forest areas in the District.
24. Labour Cooperative Societies
There are 257 contract labour cooperative societies registered

of which 180 societies are working in the State.
25. Sports Promotion & Development Cooperative Societies,

Chandaragi.
This institution was registered in 1983 to promote sports and it

is a State Level Institution. It has a residential sports school which
provides hostel facilities to 610 students. The institution is running a
school both in Kannada and English Medium from 6th Standard to IInd
P.U.C.
26. Cooperative Hospitals:
In the State, 14 Cooperative Hospitals are registered of which

08 are working.
27. Industrial Co-operative Societies
There are 816 Industrial Co-operative Societies in the State

with a membership 2.16 lakhs and working capital of Rs.33,697.21
lakhs.
28. Large sized Adivasi-Multi Purpose Co-operative Societies

(LAMPS)
72
There are 24 large sized Adivasi-Multi Purpose Co-operative

Societies working in the State. These societies have been organised
with the objective of improving the social and financial conditions of
the adivasis.
29. The Karnataka State Co-operative Federation Ltd.,

Bangalore:
Karnataka State Co-operative Federation has an objective of

providing education & training for the healthy development of the co-
operative movement. Further it provides a wide coverage for the
activities of co-operative in the State through the media. As on 31-03-
2017, Federation has conducted 910 training programme in which
39,959 people have participated, and among the participants 2,546
were women. Out of 56 debate and essay competitions at District level
and State level, 1,777 students were participated
News Weekly:
Federation has been publishing “Sahakara Weekly” for the last 49

years. Weekly includes the news and views on co-operatives,
Government Circulars, Progress report on co-operatives, interview
with senior co-operators, information on best co-operators and such
other items. At present about 12500 co-operatives and co-operators
have enrolled as subscribers for the weekly.
Societies Registration
The implementation of Karnataka Societies Registration Act,

1960 was transferred from Revenue department to Co-operation
Department with effect from 01-06-2016 vide order no.
PÀAE/17/ªÀÄÄ£ÉÆÃ¸ÉÆÃ/2015 dated:19-05-2016.
73
The powers of implementation of the Act has been delegated

to District Registrars of Co-operative Societies as per Government
Notification no. ¸ÀE/01/¸À¸ÀA£ÉÆÃ2016 ¢:09-06-2016.
Under this Act the societies related to the promotion of charity,

education , science, literature or fine arts, sports, the instruction and
the diffusion of knowledge relating to commerce or industry or any
other useful knowledge, political education, maintenance of libraries,
the promotion of conservation and proper use of natural resources etc.,
may be registered.
At the end of 31-3-2017 there are 3,26,054 societies registered

under the Karnataka Societies Registration Act, 1960. As per Rule 9
of Karnataka Societies Rules 1961 the societies have to pay fee related
to registration, filing of returns and the scanning to Government. From
1-6-2016 to 31-03-2017 the total fee paid is Rs.10.41 crores.
***********
74
-: Chapter IV :-
Amendments to the existing legislation
During the year 2016-17 amendments have been made to the

Karnataka Co-operative Societies Rules, 1959 and the Karnataka
Souharda Co-operative Rules, 1997 which have respectively come into
effect from 27-7-2016, 01-08-2016 and 4-1-2017.
Departmental Schemes evaluation
Among the schemes implemented by the department during the

year 2016-17, the following schemes were identified for independent
evaluation study.
1. Loans to KASCARD Bank

2. Enrolment of SC/ST BPL people as a members of all types
of Co operative Society.
In respect of the above schemes the evaluation work is under

progress.
75
-: Chapter V :-
Human Resources Management and Administrative Activities
Statement showing the sanctioned and filled posts and vacancies of

the Department
(as on 31-03-2017)
Sl. Posts Working Vacancy

Name of the Post Pay Scale
No. Sanctioned Position Position
1 2 3 4 5 6
1 Registrar of
Cooperative 37400-67000 1 1 0
Societies
2 Addl. Registrar of
Cooperative 48900-63600 25 24 01
Societies
3 Joint Registrar of
Cooperative
40050-56550 1 1 0
Societies (ADM .&
DEV.)
4 Joint Registrar of
Cooperative 40050-56550 64 38 26
Societies
5 Deputy Registrar of
Cooperative 36300-53850 49 49 0
Societies
Assistant Registrar
6 of Cooperative 22800-43200 160 43 117
Societies
7 Assistant Engineer 22800-43200 1 1 0
8 Assistant Director
22800-43200 1 1 0
9 Assistant Accounts Deputation
1 0 1
Officer Post
76
Sl. Posts Working Vacancy

Name of the Post Pay Scale
No. Sanctioned Position Position
1 2 3 4 5 6
10 Coop. Development
21600-40050 269 223 46
Officer
11 Superintendents
20000-36300 90 85 05
12 Senior Inspectors of
Cooperative 17650-32000 250 155 95
Societies
13 Asst. Statistical Deputation
1 0 1
Officer Post
14 Inspector of Coop.
14550-26700 510 79 431
Societies
15 Senior Accountant Deputation
3 0 3
Post
16 First Division
14550-26700 146 107 39
Assistant
17 Stenographers 14550-26700 48 13 35
18 Senior Typists 14550-26700 16 5 11
19 Typists 11600-21000 114 14 100
20 Senior Drivers 14550-26700 16 09 07
21 Drivers 11600-21000 66 13 53
22 Second Division
11600-21000 335 228 107
Assistant
23 Process Servers 11000-19000 80 49 31
24 Peons 9600- 14550 387 142 245
25 Gardener 9600- 14550 1 0 1
Total 2,635 1,280 1,355
77
Number of Officers/ Staff as at the end of 31-03-2017
Posts sanctioned
Of which Of which Scheduled
working- Male working- Female Caste
A B C D A B C D A B C D A B C D
140 432 1595 468 91 206 431 151 22 61 277 40 19 63 154 57
No. of officers/ staff who Details of outsourced

Scheduled Tribes
have retired during 2015-16 staff in various cadres
A B C D A B C D Cadre No.
Typists/ 38
Stenographers
04 20 42 07 08 26 16 15 Drivers 27
“D” group 27
Security Gard 03
Details of the officers/ staff who have attended training

programmes during 2016-17
No. of officers/ staff No. of officers/ staff who No. of officers who
who have attended have attended training have attended
training programmes programmes outside the training programmes
within the State State abroad
277 26 -
78
Details of the Training Programmes
No. of
Sl.
Details Officers/
No.
Staff
Training Programme to the officers of the Department
1 working as Liquidators to efficiently perform the duties 22
of a Liquidator
Training Programme to Staff of the Department
Regarding Right to information Act, income Tax, stress
2 22
management, yoga, Time management and office
management
Training programme on office hand book,
3 computerization and office management to the newly 47
appointed Inspector of co-operative societies
Training programme to the staff of the Department
Regarding pension settlement, GIS, Gratuity, GPF
4 Calculation and Settlement and Recruitment Of the Staff 48
on compensation grounds and about review of the court
orders
Training Programme on Higher Diploma in Co-operative
5 8
management
Training programme to the staff of the Department
6 regarding enquiry of court cases documents and writing
the important court orders 26
Training program to the officers of the Department
7 regarding the recent amendments to the Karnataka Co-
operative Societies Act, 1959 and Rules, 1960
8 Study tour programme to the staff of the Department 23
programme on trends in HR and Banking for the Officers
9 26
of Co-operative Department
Training programme to the Officers/staff Of the
10 Department Regarding Right to Information act, stress 30
Management, Time management &office Management
79
No. of
Sl.
Details Officers/
No.
Staff
Training programme to the Officers/staff Of the
11 Department Regarding Right to Information act, stress 31
Management, Time management, office Management
Training programme for officers/ staff of the Department
12 Regarding Effective conducting of enquiries, inspection 20
and Karnataka co-operative Societies Act 29c
Total 303
Administrative measures and modernization of the Department to

increase efficiency
Direction and Administration-Modernization:-
During the year 2016-17, the government has provided a budget

provision of RS.20.00 lakhs towards modernization. 4 Programmes
were targeted to be implemented.
An amount of Rs.0.70 lakhs is released to offices of Assistant registrar

of co-operative societies of Chitradurga, Koppal, Mangalore, Mandya,
Tiptur, Chikkaballapura and office of Deputy registrar of co-operative
societies 4th Zone, Total amount of Rs.4.90 lakhs is spent for the
purchase of Xerox machines. Further 10 printers and 2 scanners are
purchased incurring an expenditure of Rs.108500 at head office,
Administrative inspections conducted by the Division / District

level officers
For the year 2016-17, the annual target for conducting administrative
inspection by the Division/ District level officers was 1429 co-
operative societies, 309 offices totaling to 1738. Out of which
inspections of 878 co-operative societies and 129 offices totalling to
1007 were conducted with a progress of 57.94%.
80
Punitive actions against officers/ officials.

As on 01-04-2016, there were 14 disciplinary cases pending
against officers / officials of the Department. During the period from
01-04-2016 to 31-03-2017, 06 new cases have been ordered and 06
cases have been disposed leaving a balance of 8 cases at the end of 31-
3-2017.
Chapter VI :-
Performance relating to Audit observations and number of
questions answered in the assembly
Paras Reported in the Local Audit inspection report
Year Audit Fresh Total No. of No. of No. of
Paras o/s paras Paras paras to paras paras o/s
at the added which dropped at the end
beginning during complianc of the
of the year the year e has been year
submitted
1 2 3 4 5 6 7
2014-15 104 39 143 143 35 108
2015-16 108 28 136 136 2 134
2016-17 134 13 147 147 8 139
Paras reported in the report of the Comptroller and Auditor

General of India
Year CAG Fresh Total No. of paras No. of No. of

Paras o/s paras paras to which paras Paras
at the added compliance dropped o/s at
beginning during has been the end
of the the year submitted of the
year year
1 2 3 4 5 6 7
2014-15 2 - 2 2 - 2
2015-16 2 - 2 2 - 2
2016-17 2 - 2 2 - 2
81
Number of questions answered in the Legislature :-

During 2016-17 in both the houses of the State Legislature, -
178 questions in the Legislative Assembly and 153 questions in the
Legislative Council were raised by the Hon’ble members and reply to
all these questions have been submitted.
Court cases against the Department in various courts/Tribunals.
1) In the Hon’ble Supreme Court of India as on 31-3-2017,

8 SLP’s were pending.
2) In the Hon’ble High Court of Karnataka as on 31-3-2017,
278 writ petitions were pending.
3) In the Hon’ble Karnataka Administrative Tribunal as on
31-3-2017, 31 applications were pending.
4) As on 31-3-2017 there are 616 appeals pending before the
Hon’ble Karnataka Appellate Tribunal.
Right to Information Act
As on 01-04-2017, there were 49 applications pending under

the Right to Information Act. During the period from 01-04-2016 to
31-03-2017, 3535 applications were received. Out of the total 3584
applications, 3541 applications were disposed off and as on 31-03-
2017 there were 43 applications pending for disposal.
As on 01-04-2017, there were 16 appeals pending under the

Right to Information Act. During the period from 01-04-2016 to 31-
03-2017, 226 appeals were received. Out of these appeals, 242appeals
were disposed off and as on 31-03-2017there were 51appeals pending
for disposal.
82
RELATED LINKS
DEPARTMENT OF CO-OPERATION http://www.sahakara.kar.gov.in

GOVERNMENT OF INDIA http://india.gov.in
GOVERNMENT OF KARNATAKA http://www.karunadu.gov.in
DEPARTMENT OF AGRICULTURE http://agricoop.nic.in
AND CO-OPERATION, GOVT. OF
INDIA
DEPARTMENT OF CO-OPERATIVE http://sahakaradarpana.kar.nic.in
AUDIT
YESHASVINI http://www.yeshasvini.kar.nic.in
KARNATAKA APEX BANK http://karnatakaapex.com
KARNATAKA MILK FEDERATION http://www.kmfnandini.coop
IFFCO http://www.iffco.in
DEPARTMENT OF AGRICULTURAL http://krishimaratavahini.kar.nic.in
MARKETING
DEPARTMENT OF AGRICULTURE http://raitamitra.kar.nic.in
DEPARTMENT OF HORTICULTURE http://www.horticulture.kar.nic.in
STATE WARE HOUSING http://www.karnatakawarehousing.in
CORPORATION
GOVERNMENT OF INDIA http://goidirectory.nic.in
DIRECTORY
NABARD http://www.nabard.org
E-mail IDs
PRINCIPAL SECRETARY prs-coop@karnataka.gov.in
OSD osdexjs@gmail.com
RCS rcs-ka@nic.in
ADDITIONAL RCS (CREDIT) addlrcs-credit-ka@nic.in
ADDITIONAL RCS (H&M) addlrcs-im-ka@nic.in
ADDITIONAL RCS (C&M) addlrcs-cm-ka@nic.in
ADDITIONAL RCS (I&D) addlrcs-indl-ka@nic.in
JOINT REGISTRAR (ADM & DEVP.) jrcs-adm-ka@nic.in
JOINT REGISTRAR (ICDP) jrcs-icdp-ka@nic.in
JOINT REGISTRAR (UBC) jrcs-ubc-ka@nic.in
JOINT REGISTRAR (LEGAL CELL) jrcs-legal-ka@nic.in
DEPUTY REGISTRAR & GA TO RCS ga-rcs-ka@nic.in
***********

Karnataka ANNUAL REPORT English - 2016-17

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Karnataka ANNUAL REPORT English - 2016-17

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1

REGISTRAR OF CO-OPERATIVE SOCIETIES

The greatest challenge to any civilized society is the economic

COOPERATIVE MOVEMENT IN KARNATAKA

The State has witnessed tremendous growth in the cooperative

Cooperative Movement is wide spread in all the developmental

To promote and encourage the growth of self-reliant,

The mission of the department is :-

1. To take steps to see that genuine co-operatives are organized

1. Strengthen the credit delivery system to the farmers through

1. Suggest suitable amendments to all the Acts and Rules

Organizational Structure of the Department;

The Department at the Government level has a secretariat and a

The Department of Co-operation at the Government level is

and Rules. Government is also the appointing and disciplinary

State Head Quarters:

The Registrar of Co-operative Societies is the Head of the

Regional, District, Sub-divisional and Taluk level:

The powers of the Registrar have been delegated to the

The District Deputy Registrars also function under the control

sector Plan Schemes are concerned. The sub-divisional Assistant

Acts and Rules implemented by Co-operation Department

1. Karnataka Co-operative Societies Act, 1959 and Karnataka Co-

Sl. 2015-16 2016-17

No.of cooperatives 39,627 40,643 41,402

Share Capital (Rs. in crores)

b) Members 3774.87 4405.27 4,733.19

3 Membership ( in lakhs) 223.99 234.65 248.21

a Name of the scheme and year of Direction & Administration- 125-

b Budget head 2425-00-001-0-01-125

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

g) Expenditure (Rs in lakhs) :

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

h) Physical Achievements: (Units)

a Name of the scheme and year of Technology & Human Resources

c If Plan, the Central and State 0:100

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

g) Expenditure (Rs in lakhs) :

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

h) Physical Achievements (Units)

Name of the scheme and year of

b Budget head 2425-00-004-0-03

free and fair elections, Boards being

f) Financing :(Rs in lakhs) :

- 213.91 - 200.00 - 300.00

g) Expenditure: (Rs in lakhs) :

h) Physical Achievements: (Units)

is reimbursed by way of interest subsidy as

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

g) Expenditure: (Rs in lakhs) :

h) Physical Achievements: (Units)

Two key Audit observations/Inspection

d Objective of the Programme/ Reduction in the rate of interest on loans to

e Estimated benefit and number Providing accessible credit through formal

f) Financing (Rs in lakhs) :

g) Expenditure (Rs in lakhs) :

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

h) Physical Achievements (Units----)

b Budget head 2425-00-107-02-41

f) Financing :(Rs in lakhs) :

Actual / Accounts 2014-15 Actual / Accounts 2015-16 RE 2016-17

g) Expenditure: (Rs in lakhs) :

h) Physical Achievements: (Units)