Mains Daily Question
Dec. 21, 2022

Mentioning the constitutional provisions related to cooperatives, explain the basic provisions of the recent multi-state cooperative societies bill 2022. (10 Marks)

Model Answer

Approach:

Introduction- Mention articles of the constitution.

Body- state basic provisions and a few issues.

Conclusion- Suggest measures further to promote cooperatives.

Answer:

Cooperative societies resonate with the idea of development through Sarvodaya given by Gandhiji by upliftment of everyone together. The 97th Constitutional Amendment Act added the term ‘cooperatives ‘ in Article 19 (1)(C) under part III enabling everyone the right to form cooperatives along with article 43(B) for the promotion of such societies.

 

Provisions of the Multi-State Co-operative Societies (Amendment) Bill:

  • Formation of Cooperative election Authority to conduct, supervise and perform such functions.
  • Formation of a Co-operative Ombudsman by the Union to redress complaints.
  • Allows even state co-operative societies to merge into existing multi-state cooperative societies provided resolution is passed by majority voting at the general assembly of the cooperative.
  • Formation of Co-operative Rehabilitation, Reconstruction and Development Fund to revive sick multi-cooperative societies.
  • Power to centre to direct and supersede boards of societies where the government has any shareholding or has provided financial assistance.
  • Penalties have been increased in cases like false returns, furnishing false information etc.

 

Issues with this amendment:

  • Provision of merging state cooperatives with multi-state cooperative societies (coming under the purview of the Centre) will affect the federal structure, as state cooperatives come under the state list.
  • Earlier the Centre could supersede a board in case of more than 50 per cent shareholding, now can supersede in case of any shareholding or giving any financial aid thus affecting the autonomy of cooperatives.

 

Comprehensive public consultation along with cooperation between the Centre and the State needs to be ensured. There should be the utilisation of new technology, and professional expertise along with a people-centric mindset to ensure multiple success stories like that of Amul in India. All this will move towards the realisation of the vision of Gandhiji.

Subjects : Polity
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