Contents
Source– The post is based on the article “On amending the Cooperative Societies Act” published in The Hindu on 12th December 2022.
Syllabus: GS2- Development process and development industry
Relevance– Issues related to cooperative societies
News– The article explains Bill introduced in the Lok Sabha on amending the Multi-State Cooperative Societies (MSCS) Act, 2002, recently.
What are Multi State Cooperatives?
According to the International Cooperative Alliance (ICA), cooperatives are people-centred enterprises jointly owned and democratically controlled by and for their members. It realises their common economic, social and cultural needs and aspirations.
Multi-State cooperatives are societies that have operations in more than one State — for instance, a farmer-producers organisation which procures grains from farmers from multiple States.
What are the problems faced by the Multi State Cooperatives?
- Lack of checks and balance
- Weak institutional infrastructure of central registrar
- Poor management of grievances redressal system.
What are the key changes in the Bill?
- The amendments have been introduced to improve governance, reform the electoral process, strengthen monitoring mechanisms and enhance transparency and accountability.
- The Bill also seeks to improve the composition of the board and ensure financial discipline, besides enabling the raising of funds in multi-State cooperative societies.
- The Bill provides for the creation of a central Co-operative Election Authority to supervise the electoral functions of the MSCSs.
- It also envisages the creation of a Co-operative Rehabilitation, Reconstruction and Development Fund for the revival of sick multi-State co-operatives societies.
- In order to make the governance of multi-State cooperative societies more democratic, the Bill has provisions for appointing a Cooperative Information Officer and a Cooperative Ombudsman.
