Amendments to the Co-operative Societies Act
Context- The Lok Sabha on Tuesday referred The Multi State Cooperatives (Amendment) Bill 2022 to a Joint committee of Parliament.
What are cooperatives?
- According to the International Labour Organisation (ILO), a cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
- There are many types of cooperatives such as Consumer Cooperative Society, Producer Cooperative Society, Credit Cooperative Society, Housing Cooperative Society and Marketing Cooperative Society.
(Credits- Sketch Bubble)
What are the new proposed changes?
- New Rules for Merger- Any Cooperative Society may, by a resolution passed by majority of not less than two-thirds of the members present and voting at a general meeting of such society, decide to merge into an existing multi-state cooperative society.
- Cooperative Election Authority- The authority shall consists of a Chairperson, a Vice Chairperson and members not exceeding three to be appointed by the centre to bring electoral reforms in the cooperative sector.
- Qualifications prescribed for Chairperson is having held post of Additional Secretary or equivalent rank, for Vice Chairperson Joint Secretary or equivalent rank, and for members as may be prescribed.
- Time limit of Chairperson, Vice Chairperson and Members is 3 years or until they attain the age of 65, whichever is earlier.
- To appoint one or more “cooperative ombudsmen” with territorial jurisdiction to inquire into members’ complaints. Ombudsmen to have powers like a Civil Court.
- Insert a new Section related to the “establishment of the Cooperative Rehabilitation, Reconstruction and Development Fund” for the revival of “sick multi-state cooperative societies”
- To make provisions for the “appointment of cooperative information officer” to provide information relating to affairs and management of multi state cooperative society to the members of such society.
What are the Constitutional Provisions regarding Cooperative Societies?
- 97th Constitutional Amendment Act 2011
- The right to form cooperative societies is a fundamental right (Article 19).
- New Directive Principle of State Policy on the Promotion of Cooperative Societies (Article 43-B).
- A new Part IX-B to the Constitution is added.
What are the provisions regarding the Ministry of Cooperation?
Recently, a separate ‘Ministry of Co-operation’ has been created by the Central Government.
- Significance of Ministry of Cooperation
- It will provide a separate administrative, legal and policy framework for strengthening the cooperative movement in the country.
- It will help deepen Co-operatives as a true people based movement reaching upto the grassroots.
- It will work to streamline processes for ‘Ease of doing business’ for co-operatives and enable development of Multi-State Co-operatives (MSCS).
What are the challenges faced by Cooperatives?
- A hugely large membership turns out to be mismanaged unless some secure methods are employed to manage such co-operatives.
- In the elections to the governing bodies, money became such a powerful tool that the top posts of chairman and vice-chairman usually went to the richest farmers who manipulated the organization for their benefits.
- People are not well informed about the objectives of the Movement, rules and regulations of co-operative institutions.
- Most of these societies are confined to a few members and their operations extended to only one or two villages.
- The Co-operative Movement has suffered from inadequacy of trained personnel.
Way Forward- Principle of the cooperative movement is to unite everyone, even while remaining anonymous. The cooperative movement has the capacity to solve people’s problems.
NEWS- Amendments to the Co-operative Societies Act
Syllabus- Mains; GS-2; Cooperative Societies
