·The Hindu·15 marks·250–350 words

"The ordinance route to amend cooperative laws during an ongoing electoral process undermines the democratic character of cooperatives." Critically examine.

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In this answer
  1. How it undermines democratic character
  2. The case for the ordinance
  3. Way forward

Cooperatives rest on democratic member control, and Article 43B asks the State to promote their autonomous functioning. Maharashtra recently added government nominees to the Gokul dairy board by ordinance after the board election. Amending the law this way, mid-election, strains that principle, though the State does have a real interest in protecting public money.

How it undermines democratic character

  • Rules changed after voting: nominees added after members have voted can decide who becomes chairman. Who governs is then no longer settled by the vote.
  • Skips legislative debate: Article 213 is meant for "immediate action" when the legislature is not sitting. A stuck chairman's election is a political inconvenience, not an emergency. Maharashtra has used ordinances to amend its cooperative law before [1], so this is becoming a habit.
  • Weak constitutional shield: after Rajendra N. Shah (2021), the fixed board terms in Part IX-B no longer bind State cooperatives. The only protection left is the State Act [2], which the government that gains from the change can rewrite.
  • Control keeps widening: government nomination was first tied to the State holding share capital [3]. Later, other kinds of State help were proposed as a trigger [4].

The case for the ordinance

  • Public money needs a watchdog: Maharashtra's 2016 amendment said nominees would protect both the government's and the society's interest where the State held share capital [3].
  • Governance failures: many State-aided cooperatives have a record of mismanagement, so oversight does real work.
  • The Union does the same: the Multi-State Co-operative Societies (Amendment) Bill, 2022 extended government control to any society that receives government money. PRS flagged a clash with cooperative autonomy [5]. The problem runs across governments, not just one party.

Way forward

  • Nominees should audit and advise, not vote in office-bearer elections.
  • An independent election authority should run chairman polls, like the Union's Co-operative Election Authority [5].
  • Changes to how boards are made up should apply only from the next term.
  • The legislature should send such ordinances to a select committee. Courts should test the "immediate action" claim, as in Krishna Kumar Singh (2017).

The government's oversight of public funds is legitimate, but using an ordinance mid-election moves power from members to the government. Keeping audit separate from voting, holding independent elections and making rule changes apply only from the next term would balance the two. That would match Article 43B and the stated aim of the Union Ministry of Cooperation (created in 2021) to strengthen the movement [6].

Sources

  1. 1Ordinance summary: The Maharashtra Co-operative Societies (Second Amendment) Ordinance, 2020 – PRSearlier use of an ordinance to amend Maharashtra's cooperative law
  2. 2Maharashtra Co-operative Societies Act (Mah. Act XXIV of 1961) – PRSthe State statute that governs Maharashtra's cooperatives
  3. 3Maharashtra Co-operative Societies (Amendment) Bill No. 7 of 2016 – PRSgovernment nominees where the State holds share capital, and the stated reason for them
  4. 4Maharashtra Ordinance No. XV of 2018 (Co-operative Societies) – PRSmove to widen nomination beyond share-capital help
  5. 5Legislative Brief: Multi-State Co-operative Societies (Amendment) Bill, 2022 – PRS_Bill_2022.pdf) — Co-operative Election Authority; wider government control; autonomy concern
  6. 6PIB document on the Ministry of Cooperation (Nov 2024)Ministry of Cooperation set up in 2021 to strengthen the cooperative movement

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