Panaji, Jul 9 (IANS): The Goa government is considering banning registration of new cash-credit societies for a period of five years, Chief Minister Pramod Sawant said on Tuesday.

Sawant also said, that he had directed the state Registrar of Co-operatives not to permit non-Goans from setting up co-operatives in the coastal state on account of a spate of frauds carried out by such firms in the past.

"There are too many cash credit co-operative societies (in Goa). We are looking at legally shutting them down. In order to become chairpersons, some people start small collectives with acquaintances, collect a pool of money, give some loans and that is it. Such a society typically shuts down in two years," Sawant said at an event here organised by the state Co-operatives Ministry.

"Should there be a ban on such societies for five years? There are more than enough already. If someone wants to start a new society, they may even consider taking over those which are willing to sell off. I have asked the department to review the law and if possible shut down registration of such societies for five years," Sawant said.

The Chief Minister also said that his government was exploring options to ban non-Goans from starting co-operative societies in Goa, especially those which promise to double money in quick time.

"We are looking at not giving permission to non-Goans for starting co-operatives in Goa. We will not tolerate those who come here and loot Goans with such fraudulent schemes," Sawant said, adding that there was a tendency among the residents of the state to fall for fraudulent schemes like doubling of money, which had led to investors going bankrupt.