The Telangana cooperative sector banking entered an operational crisis due to the simultaneous absence of both elected chairpersons and appointed Persons In Charge (PICs) for the DCCBs
The administrative operations of all nine DCCBs across Telangana were severely halted following the expiration of the PICs’ terms on June 18, 2026
Mulkanoor Cooperative Credit and Marketing Society chairman and former Husnabad MLA Algireddy Praveen Reddy is likely to be roped in as TGSCAB chairman
HYDERABAD, SEPTEMBER 14, 2026: Close on the heels of the Andhra Pradesh government, which has filled the DCCBs and DCMS posts on a nomination basis, the Telangana Congress government is contemplating adopting the formula of ‘nomination basis’ and accommodating the party leaders who missed out on the Assembly contest opportunities.
With the Telangana Congress government contemplating filling nominated posts of various corporations and rehabilitating the Congress party leaders and gearing up for the ensuing elections by strengthening the party, the party is also planning to fill up the District Cooperative Central Banks (DCCBs) and District Cooperative Marketing Societies (DCMS) posts and the chairman of Telangana State Cooperative Apex Bank (TGSCAB) on a nomination basis.
It may be mentioned here that the cooperative elections were last conducted in the Telangana state in the year 2019, and the term of the elected cooperatives expired in 2024. Later, the Telangana Congress government had extended the term of the DCCBs and PACS for six months on two occasions. Suddenly, the government had issued GO number 598 dated December 19, 2025, appointing the Commissioner for Cooperation and Registrar of Cooperative Societies as the official person in charge (PIC) of Telangana State Cooperative Apex Bank (TGSCAB) and the respective district Collectors as the PICs of the nine DCCBs in the state.
The appointments of PICs were made for a period of six months or till the conduct of elections, shocking the DCCBs and forcing their derailment. After the appointment of the PICs to the DCCBs, the administration and the regular activities, such as loaning to farmers, entrepreneurs, students, policy decisions, business development, opening of new branches and other issues that come under the purview of the Banking Regulation Act.
Several DCCBs were forced to wait for several days for the clearance of regular files, such as loans and other issues, from the PICs, due to the hectic schedule of the respective district administration work. However, the PICs’ term also concluded on June 18, 2026, and the government had not taken any decision about the continuation of the PICs, or the conduct of elections or appointment of chairpersons for DCCBs and PACs.
However, due to the non-availability of chairpersons or PICs, the DCCBs or PACS are unable to make any policy decision for the strengthening of cooperatives and increasing their business activities. The DCCBs are confined to doing business of not more than Rs 10 lakh, as there is no management committee to sanction loans above the limit.
As the crisis is looming large in the cooperative sector banking, which was the role model in the country, the Congress party is planning to rope in senior cooperator and Mulkanoor Cooperative Credit and Marketing Society chairman and former Husnabad legislator Algireddy Praveen Reddy for the post of TGSCAB chairman on the nominated basis to streamline the cooperative sector and give a fillip to its movement. It may be recalled that Mr Praveen Reddy planned to contest from the Husnabad assembly segment in the 2023 elections
However, Mr Ponnam Prabhakar had contested from the Husnabad assembly segment, denying the chance for Praveen Reddy. Incidentally, Mr Praveen Reddy had even campaigned for the success of Prabhakar in the elections. Later, Mr Praveen Reddy planned to contest the Karimnagar parliamentary constituency elections in 2024 and filed his nomination papers. But, at the last minute, the party had given the ticket to Velichala Rajender Rao.
Minister for Transport and BC Welfare Ponnam Prabhakar, after his election from Husnabad constituency, had assured to rehabilitate Mr Praveen Reddy suitably by nominating him to the post of TGSCAB chairman. It may be recalled that Mr Prabhakar, who is a lifetime member of KRIBHCO and worked as APMARKFED chairman, knows the importance of cooperatives and is planning to rope in Praveen Reddy as the crucial TGSCAB chairman because of his seniority in the cooperative sector from Mulkanoor cooperative rural bank and for winning accolades in the country.
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