Multi-State Cooperative Societies (Amendment) Bill, 2022 gets Cabinet approval

Tags: National National News

The Union Cabinet on 12 October 2022 has approved the Multi-State Cooperative Societies (Amendment) Bill, 2022. 

Important facts

  • This bill has been brought to amend the Multi-State Co-operative Societies Act, 2002.

  • The aim of the amendment bill is to strengthen the cooperative movement in the country.

  • The amendment to the Act will improve governance, increase transparency and accountability and reform the electoral process in multi-state cooperatives.

  • Election authority will be constituted to ensure fair, free and timely elections.

  • This amendment is an attempt to improve the ease of doing business and bring in more transparency.

Highlight of the bill

  • The Bill includes provisions relating to representation of women and members of the Scheduled Castes/Scheduled Tribes on the boards of multi-state cooperatives.

  • The bill will include provisions of the 97th Constitutional Amendment.

  • The Constitution (97th Amendment) Act, 2011 deals with the cooperative societies operating in India.

  • The bill will expand the composition of the board and ensure financial discipline, apart from enabling multi-state cooperatives to raise funds.

  • The Bill has specific provisions for the establishment of a Co-operative Election Authority, a Co-operative Information Officer and a Co-operative Ombudsman.

  • There is a provision to ban the offenders for three years to bring more electoral discipline.

  • The Bill provides for bringing in selected directors with experience in the fields of banking, management, cooperative management and finance.

Multi-State Co-operative Societies Act, 2002

  • Co-operative is a state subject, but there are many societies such as sugar and milk, banks, milk unions etc. whose members and areas of operation are spread over more than one state.

  • This act was passed to govern the multi state cooperative societies.

  • For example, the Karnataka-Maharashtra border has most of the sugar mills that procure sugarcane from both the states.

  • Maharashtra has the highest number of such cooperative societies followed by Uttar Pradesh and New Delhi.

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