Centre proposes concurrent audit of multi-State Co-operative societies

The government introduced the Multi-State Cooperative Societies (Amendment) Bill, 2022, which proposes merger of “any cooperative society” into an existing multi-state cooperative society.

The Centre has proposed this amendment through Section 6 of the Bill, introduced in Lok Sabha by Minister of State for Cooperation B L Verma. As per the present law, enacted 20 years ago, only multi-state cooperative societies can amalgamate themselves and form a new multi-state cooperative society.

But now, “any cooperative 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 provisions of the respective State Cooperative Societies Act for the time being in force, under which such cooperative society is registered,” states the proposed sub-section (10) to be added in Section 17 of the 2002 law.

The Bill also seeks to establish a “cooperative election authority” to bring “electoral reforms” in the cooperative sector. For this, the government has proposed to substitute Section 45 of the 2002 Act. As per the proposed amendment, the authority will consist of a chairperson, a vice-chairperson and a maximum of three members to be appointed by the Centre.