Bengal orders audit into cooperative loan irregularities; announces reforms in cooperative sector

MP, May 24, 2026, Kolkata: The West Bengal government has initiated a major overhaul of the cooperative sector, ordering audits into alleged large-scale corruption in cooperative banks while also announcing that political leaders will no longer head cooperative bodies.

State Cooperation Minister Ashok Kirtania alleged that the cooperative system had witnessed widespread irregularities over the past 15 years, particularly in the disbursal and recovery of long-term loans.

Addressing a press conference, Kirtania said the state government had already ordered an FIR in the Mangalkot area of East Burdwan district following instructions from CM Suvendu Adhikari.

He added that more FIRs could be lodged as investigations progress.

According to the minister, several influential individuals allegedly linked to the previous Trinamool Congress government took long-term loans from cooperative institutions but failed to repay them.

“There has been large-scale corruption in the system and farmers have become victims of it,” he said, warning those involved in corruption to return “government money and poor people’s money” or face strict action.

Departmental sources said 17 central cooperative banks and 24 district cooperative banks currently provide long-term loans in the state.

Recovery of these loans has emerged as a major concern for the department.

Kirtania said audits have been ordered in all cases where corruption allegations have surfaced.

The minister also announced that politicians, including MPs, MLAs and other elected representatives, would no longer be allowed to head cooperative societies and cooperative banks.

Instead, non-political members elected from within the cooperatives would occupy key positions.

“Farmers understand the problems of farmers better. Political leaders will not run these bodies,” Kirtania said.

The department also announced plans to introduce greater transparency in recruitment to the Cooperative Service Commission through IT and AI-based systems after no appointments were made for the past three years.