Co-op. Societies told to double check authenticity of documents before advancing loans

Mysore/Mysuru: With rising cases of unscrupulous persons submitting fake documents to avail loans or to buy or sell of properties, being reported of late, Co-operation Department officials have asked Co-operative Societies to double check the authenticity of documents before advancing loans.

Speaking after inaugurating a ‘Subject-based training workshop’ for CEOs and Managers of Co-operative Societies organised under the aegis of Karnataka State Souharda Samyukta Co-operative Societies Association at the Institution of Engineers Hall here recently, Deputy Registrar of Co-operative Societies G.R. Vijayakumar said that of late,  loan advancements and loan recoveries have become a challenging task for the Co-operative Societies. 

Emphasising on the need to double check the documents submitted for loans, Vijayakumar cautioned that the Societies will have to face problems if they ignore to do so. Expressing concern that unscrupulous persons are using the latest technology to create fake documents, he said that it has become difficult even for an experienced person to tell whether the documents are genuine or fake. Stressing on the need to carry out document checks at various levels before advancing loans, he said that Society Managements too have an equal responsibility.

Regretting that several Souharda Societies and Banks have shut down overnight after duping depositors, Vijayakumar said that such instances have been rising with many customers knocking on the doors of the Co-operation Department seeking justice. Stressing on the need for co-ordination between managements and staff for successful working of Co-operative Societies and Banks, he opined that managements should not force the staff to advance loans to persons recommended by them, if the documents submitted are not in order.