Sansad TV: Perspective- The Multi-State Co-operative Societies(Amendment)Bill, 2022

Introduction

The Lok Sabha has passed the Multi-State Cooperative Societies (Amendment) Bill, 2023. This bill aims to make cooperatives more transparent, introduce regular elections, and enhance their strength.

Cooperatives

• Cooperatives are groups where members actively engage in decision-making. 
• They're democratic, voluntary, and self-governed. 
• Before formal cooperatives, Indian communities collectively built assets like village tanks and forests. 
• Post-independence, co-operatives were promoted for community development in the first five-year plan (1951-56). 
• Multi-state co-operatives span sectors like agriculture, textiles, poultry, and marketing. 
• State and Parliament regulate state and multi-state co-operatives respectively. 
• The Multi-State Co-operative Societies Act, 2002 guides multi-state co-op formation. 
• An amendment in 2011 (Part IXB) provided co-op guidelines including board composition, elections, audits, and interventions.

Challenges in Co-operatives

Issues include governance shortcomings, excessive government involvement, membership issues, capital formation struggles, and difficulty attracting professionals. Cases of indefinite election postponement have also emerged.

Bill Highlights

• The 2022 Bill aligns the Multi-State Co-operative Societies Act, 2002 with Part IXB of the Constitution. 
• It tackles co-op functioning and governance problems. 
• A Co-operative Election Authority oversees multi-state co-op board elections. 
• Redemption of shareholding needs government approval. 
• A fund revives ailing multi-state co-ops through contributions from profitable ones. 
• State co-ops can merge with multi-state ones following state laws.

Constitutional Provisions

The 97th Constitutional Amendment Act 2011 recognizes cooperative societies as a fundamental right (Article 19). A new Directive Principle (Article 43-B) promotes them. Part IX-B (Articles 243-ZH to 243-ZT) focuses on co-operatives. A Ministry of Cooperation gives co-ops more attention.

Bill's Significance

The bill bolsters co-ops by increasing transparency and holding regular elections. It addresses operational and governance issues while aligning with Part IXB.

Key Discussions

• A fund revives sick multi-state co-ops using contributions from profitable ones, potentially affecting well-functioning societies. Government power over shareholding redemption may contradict co-op autonomy.

Conclusion

The 2023 bill updates the Multi-State Cooperative Societies Act, 2002, an important step for co-op improvement. India has over 1500 multi-state co-ops, crucial for members' economic and social well-being.