Part IXB: Co-operative Societies

Article 243ZP: Returns

Original Article:

Every co-operative society shall file returns, within six months of the close of every financial year, to the authority designated by the State Government including the following matters, namely:

• (a) annual report of its activities;
• (b) its audited statement of accounts;
• (c) plan for surplus disposal as approved by the general body of the co-operative society;
• (d) list of amendments to the bye-laws of the co-operative society, if any;
• (e) declaration regarding date of holding of its general body meeting and conduct of elections when due;
• (f) any other information required by the Registrar in pursuance of any of the provisions of the State Act.

Explanations:

Article 243ZP ensures accountability and transparency in the operations of co-operative societies by mandating the filing of detailed annual returns. These returns allow members, regulators, and stakeholders to assess the society’s performance and adherence to its objectives.

• Clause (a): Annual Report of Activities - Provides a summary of the co-operative’s activities and achievements.
• Clause (b): Audited Financial Statements - Ensures transparency in financial operations.
• Clause (c): Surplus Disposal Plan - Highlights how the co-operative plans to utilize its profits for members' benefits or reinvestment.
• Clause (d): Amendments to Bye-laws - Reflects changes in the governance structure or operational rules.
• Clause (e): Declaration of Meetings and Elections - Confirms adherence to democratic principles and scheduled governance activities.

Legislative History:

Article 243ZP was introduced as part of the Constitution (97th Amendment) Act, 2011. This provision aimed to bring uniformity and improve governance standards across co-operative societies in India.

Historical Significance:

The requirement for annual returns strengthens the accountability of co-operative societies, a sector often marred by mismanagement and lack of transparency. By mandating disclosures, Article 243ZP aligns co-operative practices with global governance standards.

Debates and Deliberations:

Lawmakers emphasized the need for consistent reporting mechanisms to address financial irregularities in co-operatives. The provision for annual returns was seen as a step toward improving members' trust and regulatory oversight.