State to crack down on erring house building societies

State to crack down on erring house building societies

Disclosing this on Friday, Co-operation Minister Lakshman Savadi said the department had ordered probe into the functioning of about 80 societies which have allegedly violated the guidelines issued by the State Registrar of Co-operatives. Two societies -- Jayachamarajendra HBCS, Mysore, and ABL-HBCS, Gulbarga -- were superseded recently and administrative officers appointed, he added.

The State has 1,482 registered societies. Of this, about 1,054 are functioning, 192 have stopped functioning and 231 are on the verge of closure.

In Bangalore Urban district, there are 364 societies. Of this, 262 are functioning, 55 have stopped functioning and 46 are on the verge of closure.

A preliminary probe conducted by the department has revealed that many societies have violated the rules by allotting sites to non-members, forming sites without land-use conversion and not following seniority in allotment.

The officials have been directed to take stern action against such societies, he added. However, the department will give an opportunity to the societies to rectify their mistakes. “Societies should reveal us the truth and then, if possible, we will allow them to set right the lapses. If not, appropriate action will be taken,”  Savadi said.

Minister lauds societies

Nevertheless, the Minister praised the services of HBCSs in providing residential sites to people. HBCSs have distributed 2.75 lakh residential sites to people in Bangalore, against 1.39 lakh sites distributed by the Bangalore Development Authority so far.

HBCSs in Mysore have distributed 1.15 lakh sites against 35,000 sites by the Mysore Urban Development Authority. “What the government agencies have not been able to do, HBCSs have done. So, it is not proper to say that all societies are bad,” he said.

Notice to three HBCSs in B’lore

The government has issued a show-cause notice to three controversial HBCSs functioning in Bangalore, seeking explanation why they should not be superseded. The societies are Vyalikaval HBCS, Karnataka State Secretariat Employees’ HBCS and Kanaka HBCS.