Part IXB: The Co-operative Societies

Article 243ZH: Definitions for Co-operative Societies

Original Article:

In this Part, unless the context otherwise requires,—

• (a) “authorised person” means a person referred to as such in article 243ZQ;
• (b) “board” means the board of directors or the governing body of a co-operative society, by whatever name called, to which the direction and control of the management of the affairs of a society is entrusted to;
• (c) “co-operative society” means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State;
• (d) “multi-State co-operative society” means a society with objects not confined to one State and registered or deemed to be registered under any law for the time being in force relating to such co-operatives;
• (e) “office bearer” means a President, Vice-President, Chairperson, Vice-Chairperson, Secretary or Treasurer, of a co-operative society and includes any other person to be elected by the board of any co-operative society;
• (f) “Registrar” means the Central Registrar appointed by the Central Government in relation to the multi-State co-operative societies and the Registrar for co-operative societies appointed by the State Government under the law made by the Legislature of a State in relation to co-operative societies;
• (g) “State Act” means any law made by the Legislature of a State;
• (h) “State level co-operative society” means a co-operative society having its area of operation extending to the whole of a State and defined as such in any law made by the Legislature of a State.

Explanations:

Article 243ZH establishes a comprehensive legal framework for co-operative societies in India. By defining key terms such as "board," "Registrar," and "State Act," it lays the groundwork for transparent and efficient governance within the co-operative sector. These definitions, introduced through the 97th Constitutional Amendment Act of 2011, ensure standardized interpretation and application across the country.

These definitions are critical for maintaining clarity and consistency in the operation and regulation of co-operatives, which play a significant role in India’s socio-economic landscape.

Clause-by-Clause Explanation:

(a) “Authorised Person”: Refers to officials mentioned in Article 243ZQ, ensuring compliance and accountability within co-operatives.

(b) “Board”: Represents the elected body managing a co-operative society's operations, promoting democratic governance. Example: Boards in state dairy co-operatives ensure equitable decision-making for farmers.

(c) “Co-operative Society”: Defines entities registered under state co-operative laws, such as Lijjat Papad, a successful women-led cooperative that highlights economic empowerment.

(d) “Multi-State Co-operative Society”: Societies operating across state borders, such as IFFCO, providing national-level benefits and efficient resource distribution.

(e) “Office Bearer”: Includes key positions like President and Treasurer, ensuring leadership accountability. Example: Office bearers in SEWA Bank facilitate financial inclusion for marginalized women.

(f) “Registrar”: Central or State-level officials overseeing co-operative registrations and dispute resolutions, ensuring compliance with legal frameworks.

(g) “State Act”: State-specific legislation catering to local co-operative needs, like the Maharashtra Co-operative Societies Act supporting sugar cooperatives.

(h) “State Level Co-operative Society”: Co-operatives confined to a single state, such as Andhra Pradesh Co-operative Bank supporting state farmers.

Historical Significance:

The 97th Amendment recognized the vital role of co-operatives in India's socio-economic framework. By embedding these definitions in the Constitution, it elevated co-operatives' status, ensuring better governance and transparency.

This amendment reflects the growing recognition of co-operatives as a cornerstone for grassroots development, especially in rural areas, where they empower local communities.

Legislative History:

The 97th Constitutional Amendment Act, enacted in 2011, introduced Part IXB to provide a uniform structure for co-operative societies in India. The act aimed to promote voluntary formation, democratic governance, and professional management in co-operatives.

This amendment sought to harmonize state and central laws, ensuring that co-operatives remain autonomous yet accountable, fulfilling their socio-economic objectives effectively.

Debates and Deliberations:

During the discussions on the 97th Amendment, legislators emphasized the importance of strengthening co-operatives through constitutional provisions. The debates highlighted the need for uniformity in definitions and operational structures to prevent inconsistencies in state laws.

Members also stressed the potential of co-operatives in achieving inclusive growth, especially in rural India, and the necessity of safeguarding their democratic character.

References:

• The Constitution (97th Amendment) Act, 2011.
• Commentary on Indian Constitutional Law by D.D. Basu.
• Case Studies on Co-operative Societies in India.
• Ministry of Cooperation, Government of India.