Parliament Passes Multi-State Co-operative Societies (Amendment) Bill, 2023

Rajya Sabha on Tuesday passed the Multi-State Co-operative Societies (Amendment) Bill, 2023 to amend the Multi-State Co-operative Societies Act, 2002. The Bill was approved by Lok Sabha on July 25.The Multi-State Co-operative Societies Act, 2002 was enacted to consolidate and amend the law relating to co-operative societies, “with objects not confined to one state and serving the interests of members in more than one state, to facilitate the voluntary formation and democratic functioning of co-operatives as people's institutions based on self-help and mutual aid.”As per the Statement of Objects and Reasons of the Bill, “Further, developments over the years necessitated changes in the Act so as to strengthen the co-operative movement in the multi-State co-operative societies.”The amendment allows state co-operative societies to merge into an existing multi-state co-operative society. The Bill adds Section 17 (10) stating that, “Any co-operative society may, by a resolution passed by majority of not less than two-thirds of the members present and voting at a general meeting of such society, decide to merge into an existing multi-State co-operative society:Provided that such resolution shall be subject to the provisions of the respective State Co-operative Societies Act for the time being in force under which such co-operative society is registered.”It also inserted a new section 63A relating to "establishment of the Co-operative Rehabilitation. Reconstruction and Development Fund" for revival of "sick multi-State co-operative societies."The Bill provides for the establishment of an Authority to be known as the “Co-operative Election Authority” to conduct and supervise elections to the boards of multi-state co-operative societies.According to the amended Section 35, shares of multi- state co-operative society shall not be redeemed without the prior approval of the concerned government authorities.Click Here To Read The Bill

Parliament Passes Multi-State Co-operative Societies (Amendment) Bill, 2023

Aiman J. Chishti

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