News Highlight
Multi-State Cooperative Societies (Amendment) Bill, 2022, Introduced In Lok Sabha
Key Takeaway
- The Central Government today introduced the Multi-State Cooperative Societies (Amendment) Bill, 2022, intending to improve transparency and accountability, as well as the ease of doing business by shortening the registration period.
The Multi-State Co-operative Societies (Amendment) Bill, 2022
- It was introduced in the Lok Sabha on December 7, 2022. It amends the Multi-State Co-operative Societies Act of 2002.
- Multi-state cooperative societies operate in more than one state.
Key Provisions of the bill
- Election of board members
- The existing board conducts elections to the board of a multi-state co-operative society under the Act.
- The Bill amends this to specify that the central government will establish the Co-operative Election Authority to
- Conduct such elections
- Supervising, directing, and controlling the preparation of electoral rolls
- Performing other prescribed duties
- The Authority will consist of a chairperson, vice-chairperson, and up to three members appointed by the central government on the recommendations of a selection committee.
- Redressal of complaints
- According to the Bill, the central government will appoint one or more Co-operative Ombudsmen with territorial jurisdiction.
- The Ombudsman shall inquire into complaints made by members of cooperative societies regarding
- Their deposits
- Equitable benefits of the society’s functioning
- Issues affecting the individual rights of the members
- The Ombudsman must complete the investigation and adjudication process within three months of receiving the complaint.
- Fund for sick cooperative societies
- The Bill creates the Co-operative Rehabilitation, Reconstruction, and Development Fund to help sick multi-state cooperative societies resurrect.
- A sick multi-state co-operative society is one that:
- Has accumulated losses equal to or exceed the total of its paid-up capital, free reserves, and surpluses.
- Has suffered cash losses in the past two years
- The Fund will be funded by multi-state co-operative societies that have been profitable for the previous three fiscal years.
- Increasing Penalties
- Making false returns, furnishing false information, or disobeying any summons are all offences under the Act.
- The fine for such offences ranges between Rs 2,000 and Rs 10,000.
Criticisms
- Encroachment of the Centre
- According to critics, by including the merger clause in the Bill, the Centre is indirectly infringing on the rights of State Co-operative Societies.
- Such actions, it is argued, “impinges” on the states’ rights and violate India’s federal structure.
- Beyond legislative competence
- Additionally, it is asserted that as State cooperative societies fall under the sole purview of States, this is outside the Union’s legislative purview.
- No provision in the Constitution
- The Constitution differentiates between state and multi-state cooperative societies governed by the Union of India.
- No provision in the Constitution allows for the merger of a cooperative society incorporated under state law and a Multi-State Cooperative Society.
Conclusion
- To promote the cooperative movement in multi-state cooperative societies, developments have required amendments to the current Act over the years.
- As a result, the government suggested changing the Act.
Pic Courtesy: Live Law
Content Source: The Hindu