Cooperative Societies in India - State or Union Subject

Cooperative societies play a significant role in India's economy, particularly in sectors such as agriculture, rural development, and credit availability. The Constitution of India provides for the formation, functioning, and regulation of cooperative societies through the following provisions:

- Entry 32 of List II of the Seventh Schedule of the Constitution assigns "Cooperative Societies" as a state subject. It means that the state governments have the power to make laws and policies related to cooperative societies within their respective territories.
- However, Entry 44 of List I of the Seventh Schedule empowers the Union Government to legislate on "Incorporation, regulation, and winding up of corporations, whether trading or not, including banking, insurance, and financial corporations but not including cooperative societies." It implies that the Union Government can regulate multi-state cooperative societies that operate in more than one state.

Based on these provisions, we can evaluate the given statements as follows:

- Statement 1: Cooperative Societies is an item in state subject. This statement is correct as mentioned above. The state governments have the primary responsibility to promote and regulate cooperative societies, including their registration, management, audit, and dissolution. They can form cooperative societies for various purposes, such as production, marketing, distribution, and consumption of goods and services.
- Statement 2: Multi-State Cooperative Societies are regulated by the Union Government. This statement is also correct. Multi-state cooperative societies are those that have members from two or more states and work for their mutual benefit. They require registration under the Multi-State Cooperative Societies Act, 2002, which is a central legislation enacted by the Parliament. The Act provides for the formation, functioning, and regulation of multi-state cooperative societies, including their incorporation, audit, and winding up. The Union Government through the Ministry of Agriculture and Farmers' Welfare administers the Act and supervises the functioning of multi-state cooperative societies.

In conclusion, both statements are correct, and they reflect the constitutional provisions related to cooperative societies in India. While the state governments have the primary role in regulating cooperative societies, the Union Government can regulate multi-state cooperative societies through a central legislation.