Co-op continues credit programme defying ban
The branch office of Maxim Multipurpose Cooperative Society in Kalapara upazila town in Patuakhali district, operating for the last five years without approval from the authorities concerned, also conducts illegal credit programmes.Photo: STAR
'Maxim Multipurpose Cooperative Society' is running illegal banking activities in their two unapproved branches in Kalapara upazila under the district. The organisation opened its two branches in Kalapara upazila town and at Alipur near Kuakata under the same upazila about five and three years ago respectively without any approval from the authorities concerned, said sources at the upazila cooperative office. On May 16, Kalapara Upazila Cooperative Officer Md Ataur Rahman issued notices to the two branches asking them to stop their banking activities but to no effect. "Maxim opened the two branches here but they have no valid papers for it. According to 'Cooperative Society Regulation, 2004' prior permission should be taken from the registrar's office if any organisation opens a branch but Maxim authorities opened the two branches without such permission," the cooperative officer said. Abdus Sakur, manager of Kalapara branch of the cooperative society, said, "Our branch is running different programmes like daily, weekly, fortnightly and monthly and 45-day deposit programmes. Besides, an especial 'Tk 100' deposit programme is run here. All the programmes are running smoothly. Now we have 220 subscribers." Ismail Hossain, manager of Alipur branch, said they collected over Tk 6 lakh from their 240 subscribers and all activities are running 'with goodwill'. A subscriber of the Kalapara branch, Shafiqul Islam of Kumerpatti area in Kalapara town, said, "I am depositing Tk 500 per month here. I would never run my business with the organisation if knew earlier that it is an illegal branch. I will withdraw my deposit very soon." Md Wahiduzzaman, Barisal divisional director of Maxim Multipurpose Cooperative Society, told this correspondent over phone, "Branch approval is stopped now. But we have applied to the authorities concerned to open branches at Kalapara and Alipur. We are hopeful that we will get permission." Asked why they are running banking activities illegally, he did not make any reply. When contacted, Kalapara Upazila Nirbahi Officer Didar-e-Alam Md Maksud Chowdhury said, "I have given necessary instructions to the cooperative officer in this regard and he has already started procedures to stop illegal activities of the organisation." The cabinet on May 14 approved the final draft of the Cooperative Society (amendment) Act 2012 that prohibits cooperative societies from running any credit programme among their members. The draft law also bans receiving deposit or subscription from those who are not members of the cooperative. Also, it has provisions for maximum seven years' imprisonment and a fine of Tk 10 lakh for doing banking without approval from the Bangladesh Bank.
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