Panaji: Chief Minister Pramod Sawant said that the state government was seriously considering to ban registration of new cash-credit societies for next five years to avoid financial frauds through them.
Sawant was addressing one day long workshop organised by National Cooperative Development Corporation near here.
The chief minister said that there are “too many cash credit cooperative societies in Goa.”
“We are looking at legally shutting them down so that the experiences of fraud witnessed in the past are not repeated,” he said.
Sawant said that in order to become Chairman of the society, some people start collecting money from acquaintances and give the loan through the society. “The society later runs into financial trouble and shuts down in two years, losing the money of investors,” he said.
The chief minister said that the state government will ban allowing more such societies. “There are enough number of them already in the state. If someone wants to start a new society, they may even consider taking over those which are willing to sell,” he said.
Speaking further, Sawant said that he was also checking the possibility of banning non-Goans from starting cooperative societies in Goa, especially those which promise to double money in quick time.