The Commissioner Co-operation has issued circular dated 27th January, 2010 and all of sudden changed the procedure for allotment of State Level Urban Co-operative Banks and Credit Co-operative Societies. This circular has also expanded the scope coverage of audit by the Certified Auditors and Government Auditors, by increase the limit (UCBs/Credit Societies having certain amount of deposit) upto that, they can audit.

As per the said circular the powers of allotment of audit of State Level Urban Co-op. Banks and Credit Societies has been delegated to the Deputy District Registrar (DDR) of each district for the reason that this would it would bring, more transparency in allotment system, given effective control on all cooperative societies in district and help in systematic collection of audit information. However, how these objectives are more effectively achievable with decentralization has not mentioned.

The Reserve Bank of India maintains an all India Centralized Panel for the allotment of audit of branches of Public Sector Banks and Comptroller & Auditor General of India maintains an all India Centralized Panel for the allotment of audit of branches of Public Sector Undertakings. In both cases the audit allotment process is centralized and is working properly since decades. Therefore, we believe that decentralization power of audit allotment would not bring more transparency and harmonization. The state level Urban Credit Co-op. Societies and Urban Co-op Banks falls under the jurisdiction of the Commissioner of Co-operation & Registrar, Co-operative Societies, Pune. Thus, the decentralization of audit allotment powers to district level may bring administrative bottleneck-ness and adversely affect the transparency. Therefore, it is more appropriate to maintain the panel at State level and allotment shall be done in centralized manner only.

The WIRC is taking up this matter with the Commissioner Co-operation and draft representation sent to WIRC is attached herewith. The members in Maharashtra are requested to promote awareness about the impact of this circular among the members.

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Category : CA, CS, CMA (3937)
Type : News (13990)
Tags : Empanelment (512)

0 responses to “Maharashtra State Level Urban Co-op Banks & Credit Societies: Change in Empanelment and allotment procedure”

  1. Ghodekar Prashant says:

    I have appointed as auditor of co-op Society’ vide order attached herewith but i have not alloted any audit
    yet usual practice DDR Office and allied take 40% of total fee i.e If audit fee Rs 10000/- he take 4000/- calculated on total of credit side and
    information have in possession of total turnover P & L account etc and this information call from respective society
    This 4000/- amount is without receipt and no prof left for this amount .I don’t know but people told me all amount are distributed from Low level to Higher authority
    including Minister commissioners and allied and this practice continuously operate year to year even this amount is also take from Chartered Accountants Institute /association
    goto high court but case is stand on the department but this practice is no change
    Please Ban on this audit allotment

    Prashant Ghodekar

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