ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 27th May. Click Here for more information.
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.
