JUDGMENT : Amit Rawal, J. This order shall dispose of 42 writ appeals preferred by the writ petitioners/fixed depositors aggrieved of the inaction on the part of the Co-operative Societies, who have been taking the deposits in the shape of FD by levying an extra amount of interest than the Nationalized Bank and on failure to discharge the duty, resulted into the multifariousness of litigation and dismissal of the same by the learned Single Bench on the ground that as per Section 57E of the Kerala Co-operative Societies Act , 1969, the government has come out with a statutory deposit scheme, where the societies are required to contribute. The amount due to the writ petitioners is not a paltry amount but exponential. 2. Aggrieved by the judgment of the learned Single Bench relegating the writ petitioners to avail the remedy of the deposit scheme, writ appeals have come up for adjudication. Since numerous writ appeals had come up, W.A.No.185 of 2025 was kept as the lead case, though it is pertinent to mention here that the amount due to the writ petitioner in this case from the concerned Co-operative Society has already been discharged, but the matter as per the order dated 23.08.2025 was kept pending as having been treated as the lead case. 3. While issuing notice on 29.01.2025, we had restrained the Societies from creating the third-party rights over the properties. In other words, had attached the properties owned to the society, considering the plight of the depositors who are not only senior citizens and general depositors who have deposited their hard-earned money to earn a little more interest than the National Bank, particular when a few of them are cancer patients and suffering from other various serious ailments. Before issuing the notice, on 17.01.2025, we had appointed Adv.D.Kishore as an Amicus Curie to render assistance to us. 4. The pith and substance of the judgment under challenge disposing of the writ petition has been on account of the fact that the government had come out with two schemes. One is Kerala Co-operative Revival Fund Scheme, 2024 and the other is Kerala Co-operative Deposit Guarantee Scheme, 2018 . Paragraphs 8 to 11 of the judgment noticing the aforementioned schemes and the directions contained in the judgment under challenge are extracted herein below; 8. Paragraph 4 of the Kerala Co-operative Revival Fund Scheme, 2024 reads as follows: 4. One is Kerala Co-operative Revival Fund Scheme, 2024 and the other is Kerala Co-operative Deposit Guarantee Scheme, 2018 . Paragraphs 8 to 11 of the judgment noticing the aforementioned schemes and the directions contained in the judgment under challenge are extracted herein below; 8. Paragraph 4 of the Kerala Co-operative Revival Fund Scheme, 2024 reads as follows: 4. Terms and Conditions for providing financial assistance - (1) A Co-operative Society registered under the Act shall be eligible to be considered for the benefits under this Scheme. (2) When a Society’s operations has become sluggish due to operational inefficiencies, lack of working capital and short-term liquidity issues, it shall formulate a revival scheme. (3) Only those Co-operative Societies that are weaker or remain dormant but viable and capable of gaining strength shall be considered for revival. (4) In addition to the financial assistance that may be provided from the Scheme, societies facing crisis are also eligible to utilize any reserve funds they have accumulated, subject to conditions if any specified by the Registrar. (5) The amount sanctioned under the Scheme shall be granted a moratorium on repayment for the first two years. The repayment period ranges from five to ten years. The State High Level Committee shall be competent to determine the instalment structure and interest rates from time to time. (6) Application Form for availing financial assistance from this Scheme shall be as specified by the Registrar. In view of the Co-operative Revival Fund Scheme, 2024, the 3 rd respondent-Co-operative Bank can make appropriate application for the benefits under the Scheme, with the aid of which the Bank can discharge their liabilities towards the FD/SB Deposit holders. 9. Furthermore, the Co-operative Department, Government of Kerala has issued GO(P) No.175/2024/Co- op dated 03.09.2024 inserting paragraph 5A in the Kerala Co-operative Deposit Guarantee Scheme, 2018 . Paragraph 5A reads as follows:- "5 A. Assistance to a guaranteed Society :- (1) The Board may provide an assistance to a guaranteed Society (not under liquidation/defunct) as advance or loan to refund the deposits to depositors. (2) The application for assistance shall be recommended by the Registrar of Co-operative Societies and shall contain a revival package duly certified by the Registrar of Co-operative Societies. (3) The loan shall be repaid within a period of maximum seven years as suggested in revival package and recommended by Registrar of Cooperative Societies. (2) The application for assistance shall be recommended by the Registrar of Co-operative Societies and shall contain a revival package duly certified by the Registrar of Co-operative Societies. (3) The loan shall be repaid within a period of maximum seven years as suggested in revival package and recommended by Registrar of Cooperative Societies. (4) The interest rate of such assistance shall be 1% in excess of fixed deposits maintained by Kerala State Co-operative Bank from time to time. (5) Securities and assets of the Society concerned equivalent to the assistance sanctioned shall be pledged to the Board as per the suggestion in the revival package. (6) The Director Board of Kerala Cooperative Deposit Guarantee Fund Board shall be the final authority to sanction the assistance. (7) The Board shall sanction the assistance subject to the following conditions:- (a) The Board shall sanction the assistance only up to a maximum of 50% of the total contribution collected during the previous financial year. (b) Application for the assistance shall be submitted through the Registrar of Cooperative Societies. The application and revival package shall be scrutinized and recommended by the District Level Committee consisting of Joint Registrar of Co-operative Societies (General), Joint Director of Co-operative Societies (Audit), Assistant Registrar of Co-operative Societies (General) concerned, and submit it to the Registrar of Cooperative Societies and forward the same to Kerala Co-operative Deposit Guarantee Fund Board with proper recommendation. (c) The application submitted by the Society to Assistant Registrar (General) concerned shall submit to District Level Committee within 7 days on receipt of application. The District Level Committee shall submit the same to the Registrar of Co-operative Societies within 7 days. The Kerala Co-operative Deposit Guarantee Fund Board shall sanction the assistance within 15 days. (d) The repayment of such advance/loan shall begin from second year. Interest shall be paid from 4 th year. Principal amount and the interest shall be repaid fully within the completion of 7 th year as suggested in the revival package. (e) The advance sanctioned by the Board shall only be utilized for refund of deposits. The Board shall have the power to verify that this condition has been duly complied with. Principal amount and the interest shall be repaid fully within the completion of 7 th year as suggested in the revival package. (e) The advance sanctioned by the Board shall only be utilized for refund of deposits. The Board shall have the power to verify that this condition has been duly complied with. (f) There should be a District Level Committee consisting of Departmental officials as suggested in clause 7(b) including a representative of the Kerala Co-operative Deposit Guarantee Fund Board to evaluate the progress of revitalization package implemented by the society once in every three months. The review report shall also be evaluated by the Director Board of the Board from time to time. (g) If the society fails to execute the revival package the board have power to demand immediate refund. (h) The loan sanctioned as per the package can be refunded fully if the society become financially sound before the loan period. (i) Save as otherwise provided in clause (a) above, the Board may sanction the assistance up to a maximum of 50% of the total fund available in the scheme during the first year subject to other conditions." In view of insertion of paragraph 5A, the benefits of the Kerala Co-operative Deposit Guarantee Scheme, 2018 can be availed by the 3 rd respondent-Co-operative Bank though such Societies/Banks are not under liquidation or are not defunct. 10. In view of the Kerala Co-operative Revival Scheme, 2024 and in view of the amendment made to the Kerala Co-operative Deposit Guarantee Scheme, 2018 , I am of the view that the 3 rd respondent-Co-operative Bank can avail the benefit of the Schemes in order to discharge their liability towards the petitioner. 11. The writ petition is accordingly disposed of with the following directions:- (i) The 3 rd respondent-Co-operative Bank is directed to prepare a project document for revival under the Kerala Cooperative Revival Fund Scheme, 2024 and submit the same to the State High Level Committee through the Registrar with a recommendation from the District Level Monitoring Committee. The Co- operative Bank shall submit such Scheme within a period of six weeks from today. (ii) The Scheme along with the recommendation of the District Level Monitoring Committee should be forwarded to the State High Level Committee through the Registrar within a further period of four weeks. The Co- operative Bank shall submit such Scheme within a period of six weeks from today. (ii) The Scheme along with the recommendation of the District Level Monitoring Committee should be forwarded to the State High Level Committee through the Registrar within a further period of four weeks. The State High Level Committee shall scrutinise and process the Applications and make necessary recommendation for sanctioning of the amount in specified conditions. (iii) The 3 rd respondent is further directed to make a proposal/Scheme for availing funds under the Kerala Co-operative Deposit Guarantee Scheme, 2018 in accordance with the provisions of the revised Regulations/Scheme under G.O.(P) No.175/2024/Co- op dated 03.09.2024. Such proposal shall be made within a period of six weeks. (iv) In the meanwhile, the Society/Bank/Administrator/Administrative Committee will be at liberty to recover the amounts otherwise due to the Banks through the ordinary means under the Kerala Cooperative Societies Act, 1969 and the Bank will be at liberty to repay the Fixed Deposits/Savings Bank Deposits to the petitioner as per the priorities followed by the Bank.'' 5. Mr.D.Kishore, the learned Amicus Curie as per his report dated 27.02.2025, pointed out that the Co-operative Societies in the State have been indulging into various types of activities and major activities include accepting the deposits, i.e., the multi- deposit scheme and giving away the loans to desired members at a higher rate of interest as compared to the nationalized banks. Besides that, also running a chitty business recognized under the Chit Funds Act , 1982 and since the running of the business of the chit funds is also exigible under the service tax/GST but have not been discharging the duties and in this regard, we had in the order dated 06.03.2025, suo motu impleaded the Registrar of Chits; Inspector General of Registration; Union of India through Central Board of Indirect taxes and Customs; Chief Commissioner of Central GST, Central Excise and Customs, Thiruvananthapuram as additional respondents and directed them to file affidavits. 6. During the course of the hearing, it was also brought to our notice that many of the societies have also not complied with the order, particularly with regard to Mylapra Co-operative Bank. In pursuance of the report, Adv. 6. During the course of the hearing, it was also brought to our notice that many of the societies have also not complied with the order, particularly with regard to Mylapra Co-operative Bank. In pursuance of the report, Adv. V. Krishnakumar had put in appearance on behalf of the additional respondents 8 and 9 impleaded as per the direction of this Court dated 06.03.2025, and filed an affidavit dated 27.03.2025 as bench mark and on perusal of the affidavit, it surfaced that the society having an aggregate turnover in a particular financial year of more than twenty lakhs shall be liable for registration under the GST as per the provisions of Section 22 (1) of the Central Goods and Service Tax Act, 2017 and liable to pay the GST at the notified rates as per the rate schedule on the goods and services supplied by them and also on the receipt of the services where the liability to pay tax is on a recipient as per the notifications issued under Section 3 or 4 or Section 9 of the Central Goods Service Tax Act, 2017 (hereinafter referred to as CGST Act, for short). It was also mentioned that as per the serial No.15 of the notification, services provided by a foreman of the chit fund in relation to the chit is also chargeable to GST at the rate of 12% which was amended with effect from 18.07.2022 at the rate of 18% and as per Clause (e) of Section 2(17) of the CGST Act, a business would include a provision by a club, association, society or any such body (for a subscription or any other consideration) of the facilities or benefits to its members. 7. As per the report dated 27.02.2025 of the Amicus Curiae submitted on 01.03.2025, the Kerala Co-operative Deposit Guarantee Scheme, 2018 promulgated under Section 57B, which had been the genesis of the judgment under challenge, provides a protection and measure for the interest of the depositors, a guarantee of refunding their deposit upto a limit of Rs.2 lakhs as per Clause 9(1)(a) in case a Co-operative Society runs into financial difficulties or defaults. Similarly the Kerala Co- operative Revival Fund Scheme, 2024 announced on 30.08.2024 has been promulgated only in case when the society’s operations have become sluggish due to the operational inefficiencies, lack of working capital and short term liquidity issues and Clause 4(3) of the scheme provides that only those Co-operative Societies that are weaker or remain dormant but viable and capable of gaining strength shall be considered for revival. Thus, the said scheme can be applied only if any of the conditions referred to in clause 4(2)and (3) are satisfied. In other words, in case the operation of the society had become sluggish due to the mismanagement or embezzlement of funds, the Kerala Co- operative Revival Fund Scheme, 2024 could not be applied. 8. The pith and substance of the report reveals that the schemes are promulgated only as an eyewash just to bring succor to the depositors, ignoring the mismanagement and embezzlement of sluggish weaker societies, as noticed in various orders, such as, Karuvannur Co-operative Bank, wherein allegedly caused scam of an amount of Rs.300 crores and the fate of more than 12,000 depositors has been put into turmoil. Similarly, for Kozhikode Co-operative Society Scandal, a big financial loss of Rs.10 crores, Mylapra Co-operative Society scam of Rs.20.95 crores, Kumpalampoika Co-operative Society wherein certain surcharge proceedings have been initiated. In Kandala Co-operative Bank, FIS have been registered and Enforcement Department and another agencies are investigating the fraudulent activities; Thiruvananthapuram District Welfare Co-operative Societies created a debt of more than three crores and Nemom Co-operative Bank Rs.61.93 crores and there are about 500 depositors who have been defrauded and more than twenty cases have been registered by the police against the Bank's President, Secretary and others Administrative Panel Members for criminal breach of trust and cheating and number of complaints filed by depositors exceeded more than 100. Even the ED reported about the huge financial following irregularities of 16 Co-operative Banks and 2 societies, the details of which are given hereunder; Irregular Loan Practices and Fraudulent Transactions: The ED has discovered that these banks issued fraudulent loans to their customers, which include loans unilaterally without the sanctioned loan amount of the borrowers, overvaluation of the property, and issuance of multiple loans against one single asset. It was in the wake of the petitions that were filed by the depositors of Mylapra and Kumplampoika cooperative banks in Pathanamthitta District seeking their money back amidst the fraud probe. Money Laundering and Seizure of Assets: According to the affidavit from Sri.P Vinod Kumar, Deputy Director of ED's Kochi Zonal Office, loans had been sanctioned far beyond permissible limits and to parties who were patently ineligible and, therefore, there was huge financial mismanagement. The agency has taken strong action by grabbing assets associated with the fraudulent transaction and arresting in connection with this case. No recovery attempts and on-going offenses: A significant issue that the ED has brought to light is that most of the cooperative societies involved have not taken any steps to recover the defaulted loans, and those responsible for the fraud are still holding key positions. The agency is working towards reclaiming the lost assets and ensuring justice for affected depositors. Institutions Under Investigation under current inspection by the ED are these following cooperative banks and societies: 1. Ayanthole Service Cooperative Bank 2. Thumboor Cooperative Bank 3. Nadakkal Cooperative Bank 4. Mavelikkara Cooperative Bank 5. Moonnilavu Cooperative Bank 6. Kandala Cooperative Bank 7. Mylapra Cooperative Bank 8. Chathannoor Regional Service Cooperative Bank 9. BSNL Engineering Cooperative Society 10. Koni Regional Service Cooperative Bank 11. Mariyamuttam Service Cooperative Society 12. Karuvannur Cooperative Bank 13. Edamulakkal Cooperative Bank 14. Kolloorvila Cooperative Bank 15. Anakkayam Cooperative Bank 16. Mugu Service Cooperative Bank 17. Thennala Cooperative Bank 18. Pulpally Cooperative Bank The ED continues its probe to ensure financial accountability and safeguard the interests of depositors affected by these fraudulent activities. 9. Considering those aspects, we had from time to time passed orders directing the societies to make the payment to the affected people and particularly the ones who are suffering from serious ailments including the malignancy and no doubt, very paltry amount has been paid off, but not much, which would be reflected from our order dated 04.07.2024. However, noticing that there has not been adherence of payment of 30%, we had on 23.08.2025 passed a detailed order. However, noticing that there has not been adherence of payment of 30%, we had on 23.08.2025 passed a detailed order. Order dated 04.07.2024 reads thus; ''An affidavit dated 02.07.2025 has been filed by the Secretary in charge of the Muthalakodam Service Co- operative Bank Ltd. stating therein that the bank had returned the fixed deposit for an amount of Rs.37,50,000/- deposited by the appellant as per the interim direction dated 28.05.2025, and already an amount of Rs.10,00,000/- had been released on 29.08.2024. On 28.5.2025 the Board of Directors had convened a meeting and discussed the matter in detail and decided to repay the fixed deposit amount in four instalments within a period of two months. The first instalment fell due on 23.06.2025 and released Rs.7,00,000/- to the appellant and assured that the balance amount will be released on 08.07.2025, 24.07.2025 and 07.08.2025 respectively. 2. The financial status of the society has also been enumerated in paragraph No.6 of the affidavit. Paragraph Nos.4 to 6 of the affidavit is extracted hereunder: “4. As per the interim direction dated 28.05.2025, in WA No: 185/2025, the Board of Directors of the Society convened a meeting and discussed the matter in details, on 23.06.2025, and decided to repay the deposited amount to the appellant herein, with'4' instalments within two months. As per the decision made by the bank, the bank discussed the matter- in detail, with the appellant and obtained his consent also. 5. As per the decision, the first instalment on 23.06.2025, the third respondent bank released Rs. 7' lakhs to the appellant and assured him to release the balance, amount on 08.07.2025, 24.07.2025 and 07.08.2025, respectively. 6. The financial status of the society as on 31.05.2025, is that total deposit is Rs. 36,47,65,043/- total borrowings of the society is Rs: 14,46,92,427/- interest payable is Rs: 20,90,20,81/-. Total outstanding loan amount is Rs. 40,91,76,755/- (in total 1872 loan cases). Investment in other banks is Rs.55,10,496/- and fixed deposit in other banks is Rs. 93,54,237/- and interest receivable is Rs. 24,33,62,003/-.” 3. As per paragraph No.6 of the affidavit, it is evident that the total outstanding loan amount is Rs.40,91,76,755/- (in total 1872 loan cases), investment in the Bank is Rs.55,10,496/-, fixed deposit in other Bank is Rs.93,54,237/-, interest receivable is 24,33,62,003/-, the total assets of the Bank is Rs.66,74,03,491/- and the value of the land is Rs.1.7 Crores. 24,33,62,003/-.” 3. As per paragraph No.6 of the affidavit, it is evident that the total outstanding loan amount is Rs.40,91,76,755/- (in total 1872 loan cases), investment in the Bank is Rs.55,10,496/-, fixed deposit in other Bank is Rs.93,54,237/-, interest receivable is 24,33,62,003/-, the total assets of the Bank is Rs.66,74,03,491/- and the value of the land is Rs.1.7 Crores. Also clarified that some defaulters who availed huge amounts from the bank have availed legal remedies seeking time and on other grounds. 4. The affidavit is taken on record. Learned counsel appearing on behalf of the appellant submitted that cheque dated 23.06.2025 of Rs.7,00,000/- has been received and encashed. Post this matter for further consideration on 04.08.2025.'' 10. Order dated 23.08.2025 reads as follows; ''1. The details of the cases pending against the respective banks is given hereunder: Sl.N o W.A.No. Society Name Due Amount Amount Paid Balance 1. 1951/2025 Chengaroor Service Co- operative Bank 9 lakhs Not paid - 1952/2025 Chengaroor Service Co- operative Bank 12.50 lakhs 1 lakh - 1953/2025 Chengaroor Service Co- operative Bank 3 lakhs 50,000 - 1954/2025 Chengaroor Service Co- operative Bank 7.5 lakhs 50,000 - 1958/2025 Chengaroor Service Co- operative Bank 11 lakhs 1 lakh - 1959/2025 Chengaroor Service Co- operative Bank 5 lakhs 50,000 - 2. 1241/2025 Kizhathadiyoor Service Co- operative Bank 23 lakhs Not paid - 3. 792/2025 Perunad Service Co-operative Bank - 4.10 lakhs 58.51 lakhs 4. 1324/2025 Venkurinji Service Co- operative Bank 72,18,674 Not paid - 1808/2025 Venkurinji Service Co- operative Bank 75 lakhs No interim order Not paid - 1809/2025 Venkurinji Service Co- operative Bank 1839/2025 Venkurinji Service Co- operative Bank 1841/2025 Venkurinji Service Co- operative Bank 1928/2025 Venkurinji Service Co- operative Bank 5. 141/2025 Pattanakkad Service Co- operative Bank Ltd. 26.62 lakhs Not paid - 6. 1857/2025 Naranmoozhy Service Co- operative Bank 29 crore 1.5 crore time 10.5 - 1919/2025 1433/2025 1935/2025 1847/2025 7. 2070/2025 Kumplampoika Service Co- operative Bank 25 lakh 10 lakh - 512/2025 70% paid 4 lakh 1858/2025 Kumplampoika Service Co- operative Bank 40% paid 35 lakhs 721/2025 Kumplampoika Service Co- operative Bank 40% paid 8. 1845/2024 Edamulakkal Service Co- operative Bank 46,14,260 11.50 34,64,264 9. 1865/2025 Kumbazha North Service Co- operative Bank 26,24,621 Not paid 10. 185/2025 Muthalakodam Service Co- operative Bank Fully paid 11. 1845/2024 Edamulakkal Service Co- operative Bank 46,14,260 11.50 34,64,264 9. 1865/2025 Kumbazha North Service Co- operative Bank 26,24,621 Not paid 10. 185/2025 Muthalakodam Service Co- operative Bank Fully paid 11. 544/205 Mylapra Service Co-operative Bank 25 lakhs 30% 7.5 lakhs 454 Mylapra Service Co-operative Bank 11 lakhs 30% 3,30,000 2045/2024 Mylapra Service Co-operative Bank 30.69 30% 2028/2024 Mylapra Service Co-operative Bank 21 lakhs 30% 2. Learned counsel for the appellant in W.A.No.185 of 2025 submits that the entire amount due has been paid. Since this has been kept as a lead case, we are keeping this case pending for the purpose of deciding the other pending matters. Naranmoozhi Co-operative bank has incurred a maximum liability to pay off the dues of the depositors and burgeoned to almost Rs.29 crores. 3. Sri.Santhosh, learned counsel appearing on behalf of the society submitted that there are number of debtors who have not paid the amount due in respect of the loans against security and the amount is approximately more than Rs.30 crores. For initiating the arbitration proceedings under the Kerala Co-operative Societies Act , the party seeking to recover is required to pay the arbitration fees and in this regard, has already submitted a request to the Government for granting exemption and adjustment as and when the award is passed. 4. Adv.Akshay representing Sri.P.C.Sasidharan in W.A.No.1241 of 2025 submitted that with effect from 07.06.2024 vide Act No.9 of 2024 there has been amendment under Section 36A of the Kerala Co-operative Societies Act and as per the provisions of Sections 9 to 15 and 19 to 28 of Kerala State Co-operative Agricultural Rural Development Bank Act, 1984, provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) has been made applicable for recovery of the amount due to the society banks from the debtors. The aforementioned provisions empowers the agricultural bank to recover the amount by straight away initiating the process for selling the property akin to provisions under Section 14 of the SARFAESI Act. 5. Sri.Santhosh, learned counsel for the society informs that since the arbitration proceedings have not been initiated, in view of this provisions, the application submitted for exemption would not be an impediment. 6. 5. Sri.Santhosh, learned counsel for the society informs that since the arbitration proceedings have not been initiated, in view of this provisions, the application submitted for exemption would not be an impediment. 6. However, Sri.D.Kishore, learned Amicus Curae submitted that he needs short time to go through the aforementioned provisions referred to in the amendment regarding the applicability of the provisions of 1984 Act. Accordingly, we grant some time to Sri.D.Kishore to assist this Court. Post this matter on 08.09.2025 at 3.p.m. 7. As per the details indicated above, it is seen that many societies owes lot of money to the creditors and as per the affidavits, have taken effective steps for recovering of the amount of debtors and some of them have obtained arbitration award but are not able to recover the same. We thus clarify that such societies/banks can come out with some amnesty schemes giving a concession of interest enabling the debtors to opt for the same with a further clarification that within the time line specified in the aforementioned scheme, non availment of benefit would result into an action as per the above mentioned amended provisions of the Kerala Co-operative Societies Act . 8. There may be many society/banks which have not taken any steps for recovery of the amount and may be required to initiate the steps as indicated in the amendment. The modalities and the procedure regarding the appointment of sales officer as per the submission of various counsel representing the parties shall be considered only after the learned Amicus Curiae render the assistance qua applicability of provisions on the adjourned date. The State counsel is directed to provide the Statement of objects and reasons for incorporating the amendments aforementioned in the Act with effect from 07.06.2024 by Act No.9 of 2024. 9. Adv.Shiji.P.S, learned counsel appearing on behalf of the appellant in W.A.No.1324 of 2025 has filed I.A.No.1 of 2025 and submits that the Venkurinji Service Co- operative Bank had earlier taken a loan from the Kerala State Co-operative Bank - apex society, of a sum of Rs.3 crore which has now been renewed to Rs.6 crore and are disbursing the amount to the creditors as per the whims and choices without preparation of any seniority whereas the appellants are aged 70 and 63 years old but nothing has been paid. 10. 10. Sri.T.R.Harikumar, learned counsel appearing on behalf of the venkurinji Service Co-operative Bank seeks short accommodation to obtain instructions. Since the bank has already renewed the loan amount, we hereby direct Sri.T.R.Harikumar representing the Venkurinji Service Co-operative Bank to disburse at least 30% of the amount due to the appellant by the next posting date, failing which, the court may be constrained to take action and also file the detailed affidavit regarding the apportionment of the new loan amount. I.A. is taken on record. 11. In W.A.No.792 of 2025, Adv.C.S.Manu informs that the Perunad Service Co-operative Bank has extended a loan facility of Rs.1.75 crores to the Kerala State Rubber Co-operative Society (RUBCO) to gain the interest and on persistent demand, the said amount has not been repaid. On oral request of Sri.Manu Ramachandran, The Kerala State Rubber Co-operative Ltd. (RUBCO), Represented by its Managing Director, 4 th floor, KVR Tower, Mahatma Mandir Junction, South Bazar, Kannur – 670 002 is impleaded as additional respondent. Sri.K.S.Arunkumar accepts notice on behalf of RUBCO. Sri.Manu Ramachandran undertakes to serve the copy of writ appeal to him. RUBCO is directed to come out with a positive reply as to why the summary proceedings for recovery be not initiated in not clearing the dues of the Perunad Co-operative Societies, by the next date of hearing. 12. In all the societies who have not disclosed about the assets and in the cases where this court has not passed the interim, we hereby clarify that all the societies are directed not to tinker with the property of the society/banks till further orders by creating the third party rights and are directed to file a short affidavit regarding the outstanding amount due and steps taken for recovery and also the action plan with regard to the amnesty scheme as well as in view of the amended provisions by Act No.9 of 2024. 13. We further give the last opportunity to all the respondents – banks who have not paid a single penny despite of our orders. We appreciate the act of the banks who have disbursed 30% of the outstanding amount to the creditors.'' 11. 13. We further give the last opportunity to all the respondents – banks who have not paid a single penny despite of our orders. We appreciate the act of the banks who have disbursed 30% of the outstanding amount to the creditors.'' 11. In our order dated 23.08.2025, we were also taken into accountan amendment caused under Section 36A of the Kerala Co-operative Societies Act with effect from 07.06.2024 vide Act No.9 of 2024, whereby, the provisions of Section 9 to 15 and 19 to 28 of Kerala State Co-operative Agricultural Rural Development Bank Act, 1984, provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) have been made applicable for recovery of the amount due to the society banks from the debtors. The aforementioned provisions empowers the agricultural bank to recover the amount straight-away initiating the process for selling the property akin to provisions under Section 14 of the SARFAESI Act by seeking the indulgence of the Registrar for appointment of the sales officer. It has also come to effect that many Co-operative Societies have taken steps to recover the amount by initiating the process of arbitration and appointment of the sales officers and despite having obtained the arbitration awards, the execution proceedings are not making any headway. In other words, the Society Banks are not able to recover the amount from the debtors and pass on the amount due to the depositors along with the interest thus, a very piquant situation has arisen, which is a matter of grave concern to the society and as well as this Court that in the absence of any deep and policy control of the state the supervising of the State Government has not resulted into bringing any succor or redressal of the grievances of the depositors who are running from pillar to post and left high and dry. 12. As far as Naranmoozhy Service Co-operative Society is concerned, it has incurred a maximum liability of dues to the depositors to almost Rs.29 crores. There have been cases were while advancing the loan to the debtors, the security of a lessor amount than the amount paid has been accepted and even if the secured assets are sold, the entire amount of dues may not be realised. There have been cases were while advancing the loan to the debtors, the security of a lessor amount than the amount paid has been accepted and even if the secured assets are sold, the entire amount of dues may not be realised. Considering this predicament and disparaging state of affairs, we considered it appropriate to dispose of the present writ appeals. 13. The amended Section 36A of the Kerala Co-operative Societies Act reads as under; ''36A. Charge on movable or immovable property of borrower by creating Gehan - Notwithstanding anything contained in any other provisions of this Act, charge on movable or immovable property of a borrower in favour of the *Kerala State Co-operative Bank *[xx] or a Primary Agricultural Credit Society or a Primary Housing Society [or an Urban Co-operative Bank" or any Primary Co- operative Societies dealing with credit activities] may be created by Gehan in respect of which the provisions of Ss [9 to 15 (both inclusive) and 19 to 28 (both inclusive)] of the *Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (20 of 1984), as amended from time to time, shall apply with the modification of substituting the words Kerala State Co-operative Bank *[xx], Primary Agricultural Credit Society or Primary Housing Society ["or an Urban Co-operative Bank or any primary Co-operative societies dealing with credit activities"], "Society" and "said Bank or Society", respectively, for the words "Agricultural and Rural Development Bank", "primary bank", "bank" and "said banks" occurring in the said sections. Explanation.- For the purposes of this section, Gehan means a special charge on movable or immovable property, in favour of the *Kerala State Co-operative Bank *[xx] or a Primary Agricultural Credit Society or a Primary Housing Society or an [Urban Co-operative Bank" or any Primary Co-operative Societies dealing with credit activities] by a mere declaration in writing by the borrower, for securing the payment of money advanced or to be advanced by way of loan, which will have all the characteristics of a valid mortgage.'' 14. The aforementioned amendment does not in any way leads to a prospective effect for, it is inserted in the Act and would definitely apply retrospectively. The aforementioned amendment does not in any way leads to a prospective effect for, it is inserted in the Act and would definitely apply retrospectively. In other words, the Societies or the Society Banks, which in our considered view, are Rural Societies and not Urban Banks, and such controversy with regard to the using of the nomenclature as per the submission of the State counsel, is pending consideration in the Supreme Court. 15. Considering the fact that there may be a delay or lackadaisical approach on the behalf of the co-operative societies or the banks in moving an application to registrar for appointment of the sale officer and to prevent further aggravation and agony of the depositors, we deem it appropriate to issue the following directions to the Registrar under the Kerala Co-operative Societies Act to appoint one sales officer for five societies Talukwise, forthwith, at the best within a period of two weeks from today. (i). We have come across that in some cases, where sales officers are appointed, the Co-operative Societies/banks are burdened with the salary of the officer. We make it clear that the sales officer would be of the rank of Co-operative Inspector. They will continue to draw the salary from the Government and shall only be entitled to ask for expenses required for taking the steps to recover the amount, for purpose of proclamation, sale and consequential acts. (ii). In case any objections are filed on behalf of the debtors, the same shall be scrupulously and diligently dealt without any demur. (iii) The sales officer shall also be competent to treat the awards already passed as decree and initiate steps of recovery against the debtors under Section 36A of the Kerala Co-operative Societies Act . (iv) To prevent further mismanagement and sluggish approach, much less even element of embezzlement at the hands of the committee members of the societies/banks, we deem it appropriate that whatever the amount the sales officers would realize from the sale of property/properties of the debtors by way of recovery of the amount due to the banks/societies, shall put in an escrow account in the name of the District Collector concerned. (v) The District Collector, on receipt of the claims made by the fixed deposit holders, shall distribute the amount, keeping in view the age of their claims in letter and spirit, and will not adopt any dichotomous or discriminatory approach in the process. (vi) The District Collector will be empowered to see the veracity/genuineness of the claim of the depositors and record of the concerned Co-operative Societies/the Banks. (vii) We expect that all genuine fixed deposit holders who have not been paid the amount will pursue the remedy as expeditiously as possible without any further delay. (viii) It is made clear that if the amount recovered from the debtors is less than the amount due to the creditors, then the District Collector shall devise a mechanism to disburse the amount to the creditors proportionately. (ix) The District Collector is also empowered under Section 76 of the Kerala Co-operative Societies Act , to proceed with the other properties that is not under lien or mortgage, to realize the outstanding dues under Revenue Recovery Act. It will not preclude the District Collector from proceeding with the other movable and immovable assets in case, by sale of the mortgaged assets, the debt amount is not fully realized. (x) It is also expected that when the sale officers in recovery proceedings put the property under mortgage of the debtor on sale, they shall also scrupulously issue the sale certificate so as to prevent further litigation at the instance of a third-party etc. (xi) Registrar is directed to supervise the sale process conducted by the sales officers. 16. Noticing the fact that many of the societies indulging into chit funds have not registered themselves with GST and have attempted to bypass the same and evading the GST, as has been highlighted in the report of the learned Amicus Curie as extracted below: “In the 15 th Kerala Legislative Assembly, Second Session dated 12.8.2021, the Honourable Minister for Registration has submitted a reply to the query could by Sri. Anoop Jacob, Member of Legislative Assembly to the effect that the Registrar of Cooperative Societies is giving approval to the Cooperative Societies to conduct various schemes in the nature of chitty, in exercise of the powers under Section 66A of the Kerala Cooperative Societies, 1969. Anoop Jacob, Member of Legislative Assembly to the effect that the Registrar of Cooperative Societies is giving approval to the Cooperative Societies to conduct various schemes in the nature of chitty, in exercise of the powers under Section 66A of the Kerala Cooperative Societies, 1969. However, Section 66A of the KCS Act deals with the powers of the Registrar to issue general directions and guidelines to any or all of the Cooperative Societies in furtherance of the purposes of the Act or for implementing Government policies for the benefit of the members and general public. Accordingly, the said Section cannot be said to clothe the Registrar with the powers to allow Cooperative Societies to conduct various schemes in the nature of chitty in violation of the provisions of the Chit Funds Act , 1982. Moreover, any such directions or permissions given by the Registrar would be in violation of the provisions of the GST Act as well. Illustration of Tax Evasion (210 Lakh Chit Case) by cooperative societies A ? 10,000 per month chit for 100 months (210 lakh total) should pay, legally: - Stamp Duty: ? 50,500 - GST 18% of Foreman Commission which is 5% chitty sala: ? 8,91,000/- - Registration & Other Fees: ? 2,24,415/- - Total Revenue Loss Per Chit: ? 9,68,979/- Presently the cooperative societies are remitting only 2% of the profit of the scheme, ie 2% of Foreman Commission (5% of chitty sala) to the Account Head of Kerala Treasuries (0425-00-800- 93) as fees. Thus, for the above illustration, only Rs.99,000/- is remitted as fee to the State exchequer. - A ?10,000 per month chit for 100 months (210 lakh total) conducted by cooperative society. - Stamp Duty: Nil - GST – Nil - Registration & Other Fees: Nil -2% of profit (Foreman Commission-50,000 x 99=49,50,000/- 2% of 49,50,000/- Rs.99,000/-. - Total Revenue Loss Per Chit: 29,68,979-99,000 Rs.8,69,979/- With 10,500 cooperative societies actively running such schemes, tax evasion amounts to several thousand crores on an annual basis. Kerala's cooperative sector, which is significantly aided by the state, runs a veritable parody of tax evasion through the operation of illegal chit funds. - Total Revenue Loss Per Chit: 29,68,979-99,000 Rs.8,69,979/- With 10,500 cooperative societies actively running such schemes, tax evasion amounts to several thousand crores on an annual basis. Kerala's cooperative sector, which is significantly aided by the state, runs a veritable parody of tax evasion through the operation of illegal chit funds. The Registrar of Cooperative Societies has contended that MDS/GDS and similar plans are, in fact, special deposit schemes rather than chit funds, and therefore the MDS/GDS is a special kind of deposit scheme that has no association with the provisions of the Chit Funds Act , 1982, or the GST Act, 2017.'' 17. In this view of the matter, the following further directions are issued: (a) Every Non-urban Co-operative Bank and Societies, who are carrying over the activity under the MDS or GDS scheme to avoid the payment of statutory dues under the Chit Fund Act are required to register with the GST and pay the registration fees and stamp duty. In case of failure, the competent officers/departments are at liberty to take action in respect of the societies which are before us and shall also independently take action against the society in accordance with law by issuance of show cause notices. (b) All the Co-operative Societies and Non-urban Banks shall not extend the validity of the FD which has already elapsed unilaterally, without the consent of the depositors. (c) The Non-urban Banks and Societies undertake to invoke the jurisdiction of the sales officer for the recovery of the debt as expeditiously as possible within a period of three months from the date of receipt of a certified copy of the order. 18. Mr.Vipin Das, the learned Senior Government Pleader submitted that prior to the promulgation of the two schemes as noticed in the impugned order, a Board has been constituted under the Guarantee Scheme by the Government to monitor the functioning of all the Urban, Non-urban Co-operative Banks and Societies indulging into lending of money and accepting the deposits and in this process, are required to deposit 1% of the amount towards the Deposit Guarantee Schemes and in case of a distress like the one in the present situation, the depositors are entitled to a sum of Rs.2 lakhs and in the new scheme as noticed, a sum of Rs.5 lakhs. But that will not waive off their right to recover the balance amount. 19. But that will not waive off their right to recover the balance amount. 19. It was further submitted that few of the co-operative societies have been issued notices under GST and are pending consideration. In this view of the matter, we deem it appropriate to issue directions to the committee having the charge and control of the aforementioned amount under the Societies Deposits Guarantee Scheme, 2013 to immediately disburse the permissible amount to the depositors in W.A.Nos.1241, 1324, 1808, 1809, 1839, 1841, 1928, 141, 1865, 605 and 1433 of 2025 and in respect of other writ appeals mentioned in our order dated 23.08.2025 noticing that certain amount has been paid, to pay off another 30% within a period of two months from today. 19. Since, we have been informed that surcharge proceedings have already been initiated against the erring officers of the Societies under Section 65A, they are directed to be completed as expeditiously as possible, not later that ten months from the date of receipt of a certified copy of the judgment, until and unless they are entitled under the orders of the court. 20. As far as W.A.No.185 of 2025 is concerned, the learned counsel for the appellant has already mentioned that the entire amount has been disbursed. Therefore, the said appeal stands dismissed without any further directions. All other writ appeals stand disposed of.