Comments invited on Draft Karnataka Co-operative Societies (Amendment) Rules, 2016

Comments invited on Draft Karnataka Co-operative Societies (Amendment) Rules, 2016

February 8, 2017 Operations 0

The Co-operation Department of Karnataka has issued the Draft Karnataka Co-operative Societies (Amendment) Rules, 2016 (“Draft Rules”) on 12th January, 2017 thereby proposing to amend the Karnataka Cooperatives Societies Rules, 1960 (“Principal Rules”).

Any objection or suggestion on the Draft Rules may be sent to the Principal Secretary to Government, Cooperation Department, M. S. Building, Bangalore – 560 001 before expiry of 30 days from 12th January, 2017, i.e by 11th February, 2017.

Some of the highlights of the Draft Rules are given below:

1. The Draft Rules propose to substitute Rule 18 of the Principal Rules. Accordingly, the Draft Rules prescribe methods for recruitment and conditions of services of the employees of a co-operative society:
i. Appointment by direct recruitment:
As per the Draft Rules, no appointment by direct recruitment will be made except by calling for applications from all eligible candidates by notifying the same at least in more than one Kannada newspaper having wide circulation in the area of operation of the co-operative society.

However, in case of a co-operative society having taluka and above area of operation and any co-operative bank, then, such co-operative society will notify the same at least in more than one Kannada newspaper having wider circulation and in an English newspaper.

However, this condition will not apply to:

a. The appointment of an officer whose services have been lent by the Government;
b. The filling up of a post through compassionate appointment as per Principal Rules.

ii. The Board will constitute a recruitment / selection committee for recruitment / promotion whenever the need arises.

iii. The Draft Rules have further laid down the criteria for recruitment to the posts of Second Division Assistant and above; posts of Computer Programmer, Data Entry Operator, Stenographer etc., Drivers and Group D Services.

iv. The Draft Rules also propose to lay down provisions relating to age limit for appointment by direct recruitment, appointment on compassionate grounds, and other conditions of service.

Currently, the Principal Rules provides that every co-operative society will lay down in its bye-law, conditions of service of its employees. Therefore, the Draft Rules propose to include the conditions of service in Rule 18 itself rather than letting every co-operative society to lay down the same in its own bye-law.

2. The Draft Rules propose to make amendments in Rule 29B pertaining to ‘Procedure for preparation of panel of the Auditors and Auditing firms’. According to the same, it is now proposed that the need to post Auditor of the Department of Co-operative Audit will be decided by the Government on receiving a recommendation to the effect from the General Body of a co-operative society.

Currently, the Principal Rules do not have this provision.

3. The Draft Rules propose to substitute Rule 29D of the Principal Rules. Accordingly, as per the Draft Rules, now for the purpose of Section 63(11) of the Karnataka Cooperatives Societies Act, 1959, the Chief Executive of the Apex Co-operative society will submit required copies of the Audit Report of the Apex Co-operative Society through the Director of Co-operative Audit to the State Government to lay before the State legislature.

Currently, the Rule 29 D of the Principal Rules prescribe that for the purposes of Section 63(11), the Director of Co-operative Audit should submit a copy of the audit report of an Apex Co-operative Society to the State Government to lay before the State Legislature.

4. The Draft Rules propose to insert the words ‘or audit cost’ in Rule 30A pertaining to ‘Remittance of Audit Fee’ after the words ‘failing to pay the remuneration’. Therefore, as per the Draft Rules, in the event of a Co-operative Society failing to pay the remuneration or audit cost payable to the Government or an auditor under the provisions of Rule 30 [Remuneration payable to the auditor or auditing firm], the Director of Co-operative Audit may call upon the bank where the concerned Co-operative Society has maintained its account to remit the outstanding amount of remuneration to the Government. On receipt of such demand, the bank shall remit the sum as audit remuneration to the Government or the concerned auditor out of the amount at the credit of society. The bank shall comply with the directions issued by the Director of Co-operative Audit and shall also furnish a certificate to the Director of Co-operative Audit indicating the particulars of the remittance. Further the same procedure will be followed if any payment of remuneration is due to any Charted Accountant and Charted Accountant’s Firms.

Currently, the Principal Rules do not include ‘audit cost’ in Rule 30A pertaining to Remittance of Audit Fee

For further details, please refer to the document enclosed with this mail.

Source: Karnataka Gazette

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