Plea in Madras HC to permit withdrawal, cash exchange at co-op societies

Chennai: An agriculturist has approached the Madras high court to direct the registrar of co-operative societies to follow the procedures contemplated under the RBI’s circular to all the co-operative societies relating to demonetisation and permit withdrawal of cash and exchange of old currency notes into new currency notes.

Justice N. Kirubakaran, before whom the petition filed by K. Ramamurthy of Villupuram district came up for hearing, after hearing the counsel for the petitioner and the counsel for registrar of co-operative societies and RBI, posted the matter to November 16 for orders.

According to petitioner, he was the member of  the Gingee Primary Agricultural Co-operative Society in Villupuram district. More than 26 villages were coming under the purview of the society, which has 19,000 agriculturists as members. The society was transacting business to the tune of Rs 25 lakh per day. Most of the agriculturists were depending on this co-operative society for payment and withdrawals to eke out their day to day requirements.

The RBI had on November 8 issued an order to all the banks about the withdrawal of the existing Rs 500 and Rs 1,000 notes in terms of the order issued by the Union government.

However, in order to enable the public to exchange the existing currency notes, it had framed regulations. As per the regulation, the public can exchange Rs 500 and Rs 1000 notes up to Rs 4,000 and they can withdraw from their account over the counter a sum of Rs 10,000 per day subject to an over limit of Rs 20,000 a week till November 24, he added.

He said being a member of the society, he approached the co-operative society to withdraw Rs 10,000 from his account. However, the staff refused to give withdrawal slip or refused to pay the amount under the guise that the joint registrar of co-operative societies issued oral instructions not to disburse or receive any amount from the members until further orders.

When he approached the president of the society, it was revealed that no new currency notes were available in the society and the registrar of co-operative societies has not allocated any new currency notes.

It was further revealed that the joint registrar of co-operative societies has given a standing oral instruction on November 10 not to transact any business until further orders, the petitioner said.

Therefore, no transaction was taking place in the  Gingee Primary Agricultural Co-operative societies, putting its members into great difficulty. The co-operative societies have not made any such arrangement to transact business among the agriculturists, he added.