On Tuesday, the Lok Sabha successfully passed the Multi-State Cooperative Societies (Amendment) Bill, with Home Minister Amit Shah stating that the Modi government has taken significant measures to revitalize Primary Agricultural Cooperative Societies (PACS) and make them more viable and versatile.
During the session, opposition MPs demanded a detailed discussion on the Manipur situation and a statement from Prime Minister Narendra Modi, resulting in a brief debate amid sloganeering. Nonetheless, the Bill was eventually approved.
In his response to the ongoing disruptions by the opposition, Amit Shah, who is also the Minister of Cooperation, asserted that the Bill aimed at enhancing transparency, accountability, and profitability in multi-state cooperative societies has received the Union Cabinet’s approval.
Shah emphasized that the Election Authority under the Bill will conduct fair elections without government interference, and its powers will be comparable to those of the Election Commission. Additionally, provisions have been made for conducting elections again to fill one-third of vacancies on the board.
The Bill also addresses matters of discipline in board meetings and smooth functioning of cooperative societies. Notably, the chairman, vice-chairman, and committee members will be required to convene board meetings within three months.
Furthermore, the Bill introduces provisions to ensure transparency in cooperative society governance, including giving majority to equity shareholders and reserving positions for one Scheduled Caste or Scheduled Tribe member and one woman in committees. Non-compliance with constitutional requirements could lead to the disqualification of board members.
Shah stated that the recruitment process for employees would prohibit hiring individuals based on blood relations or distant relations. The Right to Information has also been included in the Bill.
In his address, Amit Shah highlighted the Modi government’s efforts to strengthen cooperatives in the country. The establishment of a separate Ministry of Cooperation addressed a longstanding demand by people associated with the cooperative sector. Shah expressed optimism that the cooperative sector’s contribution to the country’s development will grow significantly in the next 25 years.
Notable developments in the cooperative sector include the computerization of 63,000 PACS across the country, linking them with District Cooperative Banks, State Cooperative Banks, and NABARD. This move is expected to facilitate various businesses and operations of PACS.
The Modi government has also taken initiatives to allow PACS to engage in activities like LPG distribution, functioning as retail outlets, running Janaushadhi Kendras, water distribution, and storage operations.
Moreover, the government has eliminated tax disparities between cooperatives and corporations, benefiting farmers who sell sugarcane to cooperative sugar mills. Additionally, three new multi-state societies have been established to support cooperative farmers in exporting produce, seed production, and marketing organic products.
The Bill also outlines provisions for reforming the election process, enhancing transparency, strengthening monitoring systems, and promoting ease of doing business in cooperative societies.
Additionally, it addresses issues related to discipline, representation of marginalized sections in the board of directors, redemption of government shares, liquidation with prior approval, and enforcement of the Banking Regulation (BR) Act, 1949 on co-operative banks. The Bill is expected to bring a new era in the country’s cooperative movement.