The Madras High Court on Monday adjourned a plea seeking a direction to the Registrar of Cooperative Societies to follow the procedures laid down by the Reserve Bank of India (RBI) relating to demonetisation and permit withdrawal of cash and exchange of old currencies.
Justice N. Kirubakaran posted the plea moved by K. Ramamurthy of Villupuram to November 16 for pronouncing his judgment.
The petitioner submitted that he was a member of the Gingee Primary Agricultural Cooperative Society in Villupuram district. More than 26 villages came 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 dependent on the cooperative society for payment and withdrawals to eke out their day to day requirements.
On November 8, the RBI issued a communication to all the banks about the withdrawal of the existing Rs. 500 and 1000 notes. To enable the public to exchange the existing currency notes, it had framed regulations. As per the rules, the public could exchange the demonetised notes up to Rs. 4,000 a day. People were also informed that they could withdraw Rs. 10,000 a day from their account, he added.
However, the staff of his cooperative society refused to permit him to withdraw money from his account claiming that the Joint Registrar of Co-operative Societies had issued oral instructions not to disburse or receive any amount from the members till further orders.
Though the Union government and the RBI had made arrangements for disbursement of money for urgent needs of the general public, the cooperative societies have not made any such arrangement to transact business.
Petitioner complains his cooperative society refused to permit him to withdraw money from his account
