The Gujarat government is set to amend its existing Gujarat Cooperative Societies Act during the upcoming assembly session in February. The amendment is being made to incorporate the provisions of the 97th Constitutional amendment which necessitated changes in the existing cooperative law of the states.
The two government departments including law and cooperation are in the process to finalising the draft amendments to the existing act. "The draft for the amendments is being prepared in consultation with law and cooperation departments. The amendments in the cooperative societies act will be brought up during the assembly session," said Babubhai Bokhiriya, minister of agriculture and cooperation.
The amendments will include several factors such as extending the term of the board of a cooperative society from present three years to five years. Earlier, the financial audits and elections for a cooperative society were conducted by the state government, while amendments makes it compulsory to have a professional audit by an audit panel, while the elections will be conducted by an independent authority or a body similar to the election commission.
The 97th constitution amendment act 2011 has provisions to incorporate, regulate and wind up cooperative societies based on the principles of voluntary formation, democratic member control, member economic participation and autonomous functioning.
The provisions also sets a maximum time limit of six months during which board of directors of a cooperative society could be kept under supersession or suspension. It also empowers the state governments to obtain periodic reports of activities and accounts of cooperative societies and sets provisions for penalties in respect of offences relating to cooperative societies.
Gujarat law minister Bhupendrasinh Chudasma, and Bokhiriya had discussed the draft points of the amendments with the representatives of cooperative sector in Gujarat early this week.
"All the cooperative leaders have agreed on the points that are to be made in the existing act. We expect the new act will soon be announced as the deadline to formulate the new law is February 12. Most states are likely to announce it before this deadline," said Ghanshyambhai Amin, vice-president, National Cooperative Union of India (NCUI).
"In the existing act, there is no rule about restriction on number of members in the board of a cooperative. But the amendments restricts the number to 21 as has been suggested in the 97th Constitution amendment. Also, the board of directors would require at least two professionals as its members. This will reduce the over-crowding in the board of a cooperative and make it more competent," said Amin, who was also a part of the 5-member high powered committee on co-operation appointed by the central government. The high powered committee was headed by Sivajirao Patil along with the chairmen of Nabard, NDDB, Nafcub and NCUI as members of it.
"Around 62,000 cooperative societies, including sugar cooperatives, dairy cooperatives, credit societies, cooperative banks and every small and primary cooperative societies will be covered under the act," he said.
According to leaders in the cooperative sector in state, the amendments in the existing state cooperative law would not only reduce political interference in the operations of cooperative societies but also would make it capable to take on the increasing competition with the private sector.
"This is for the first time that the cooperatives have been covered under the right to information to the members of the cooperative societies. This shows the seriousness towards the sector," said Jyotindra Mehta, chairman, Gujarat Urban Cooperative Banks' Federation (GUCBF).
Besides Mehta and Amin, cooperative leaders including Ajay Patel, chairman, Gujarat State Co-operative Bank and Natwarlal Patel (Natumama) were among others who remained present at the meeting with the ministers this week.
