Most of population of the country habitats in the villages. Agriculture is a prime occupation in the villages. In the 19th century, money lenders of the villages satisfied on the high rate of interest the financial need of farmers for their agriculture. In such circumstances the farmers become economically ruined by repaying compound interest. It was the only solution of the financial problem of the farmers if they avail required money on the cheap interest conveniently. For that object the land improvement act 1883 and the loans for the farmers act, 1884 were framed.

It was the only solution of the economical problem of the farmers if they can avail the facility of the money required for agriculture on the cheap rate of interest and upon the reasonable conditions then central government and the state government had made efforts to resolve the said issue. At that time, in Europe, Sir Refrigen started rural money lending societies on the co- operative base. Therefore the then government of Madras envisaged applying the concept of the co-operative system with a view to solve the financial problems of the rural areas of India and a result, Sir Federic Nicolsen was sent to the journey to Europe. Sir Nicolsen by making a deep and comprehensive study of the agricultural Financial firms run in Europe presented a detailed report. Essence of the report was: Search Refrigens. Keeping in view the characteristics of the report that triggering the co-operative societies in the rural India like Europe would result into a fruitful and rapid economical progress in the rural areas, such type of co-operative societies were started in the several province of India. The sporadic efforts of creating such co-operative societies could not get fruitful result. Sir Adverd Law was appointed for the finding out the basis on which the law should be framed by examining this scheme across the country. Taking in account the finding and suggestions quoted by the Sir Adverd Law, "The co-operative money lending societies " Act was passed in 1904. This law provided constitution the money lending societies for the purpose of money lending by creating finance on the co-operative base as well as urban co-operative societies for the urban areas. In this way, the co-operative activities formally began in 1904 in India. The base of co-operative activities has been founded in India by the government by passing a law. The Co-operative Societies’ Act, 1904 applied to the whole of country. Simultaneously, in the light of the spatial situation, the stat Governments, provincial Government were empowered to make required changes therein.

The said law of 1904 provided only the registration of the money lending societies. No provision was therein regarding any other co-operative activities then the said act was amended in 1912. As a result of Montfords revision in 1919 the co-operative activities became a subject of the provincial governments. The Mumbai Government, taking initiatives passed the Mumbai Co-operative Societies Act in 1925. on bifurcation of the Mumbai state in 1960, Gujarat became a separate state. After the constitution of the Gujarat state since 1/5/60. The Gujarat Co-operative Societies Act 1961 has come into force. The implementation of the act is made by the Co-operation Department of the state.

The main function of the cooperation Department is as under :

  • Development of and regulation over the co-operative societies in the state as well as implementation of the Guajarat Co-operative Societies Act 1961
  • Development of and regulation over the Agricultural produce market committees of the state and for that purpose, functions of implementation of the Gujarat Agricultural produce market Committees Act, 1963
  • Preventing exploitation of the borrowers by the private money lenders under the Bombay money lender Act 1946 and in this way, regulation over the money lending
  • Implementation of the Gujarat Ownership flat Act 1973

The office of the registrar, Co-operative societies, the Gujarat state, Gandhinagar is the head office for the purpose of implementation of the functions under the co-operation Department. The additional registrar, joint registrar, deputy registrar and the Assistant registrar performs various functions in the head office his control. While at the district level, The District registrar, of the district concerned perform the functions in this regards.

There are aggregate 25 district head in the state and every district head quarter has office of the district registrar of co-operative societies. For the purpose of implementation of money lending Act , the office of assistance district registrar, money lending is at the district of Vadodara, rajkot and Godhara. For the purpose of auditing of all the co-operative societies in the state the office of joint registrar, Co-operative societies, audit (divisional) are at the Divisional level Ahmedabad, Vadodara and rajkot. While the Audit structure at the district level is at the disposal of the district registrar , co-operative societies which performs the functions of auditing accounts of the co-operative societies of various nature in the state.

For the purpose of the auditing the accounts of the milk producers co-operative societies and milk producers Co-operative federations, the co-operation Department has constituted a separate Inspection and Audit committee and chief executive officer of these committee separately perform the function of auditing the account of milk producers and milk producers co-operative federations in the state.

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