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.
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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