The
State Cabinet on Dt. 30th January 2013 approved
several reforms in the Co-operative Sector but diluted it to suit the present
system. All States in India
are required to implement by February 14th the 97th Constitutional
amendment of 2012 mandated by the Centre in the Co-operative Sector. Adv. R. P.
Rathod states that “It is
expected that these new
amendments would come into force latest by February 16, once an
ordinance is promulgated after the cabinet passes the minutes of the meeting
and it gets notified in the Official Gazette.”
He
further adds that the Govt. passed major amendments that were proposed in the
Maharashtra Co-operative Societies Act, 1960 to bring it in tune with the approved 97th constitutional
amendment of 2012, which aims at promoting “Voluntary formation, autonomous
functioning, democratic control, and professional management” of Co-operative
bodies.
However
Adv. R. P.
Rathod., cautions that the 97th Constitutional amendment, which
is aimed at bringing autonomy and transparency in the
Co-operative Sector, could prove to be problematic
for the 80,000 Co-operative Housing Societies in the State of Maharashtra, he points out
that most of them are in Mumbai and Thane Division. He further
adds that some of these amendments are
likely to add the financial burden on the Co-operative
Housing Societies, which ultimately will go from the pockets of the General
Public.
Adv. R. P.
Rathod Says the law that aims to usher in
autonomy and transparency into the Co-operative Sector took almost 11 years
in the making; the last reforms were implemented
in the year 2002. On February 15, these new amendments will become binding
on all Co-operatives in the State of Maharashtra. The decision was finally
taken following initial protests by Congress and NCP leaders. NCP, which has a monopoly in District Co-operative banks &
Sugar factories, and so did not wanted to disturb the present system
till the 2014 elections.
Instead
of a people’s movement, the Co-operative
Sector in the State has become a political movement. Take case of the apex Maharashtra State Co-operative Bank Ltd or Sugar
Co-operatives, most have run into trouble over the last decade just
because of gross misuse of funds and violation of norms. The State Govt. has
given a whopping amount of Rs. 17,320
crore to the Sugar co-operatives and other co-operative bodies controlled
& dominated by the
politicians in power. In 2011-12, itself fresh guarantees worth Rs.
705 Crore were cleared for the Co-operative sector, including the units that
have defaulted on loan payments earlier. The Congress and NCP political
heavyweights, including a
majority of cabinet ministers, trace their clout to the control of Co-operative Sector. Leaders across parties have
stakes in Co-operative banks and mills in their region. Even such
Co-operatives have invariably defaulted on loans and are still being favoured
with all kinds of concessions and
benefits.
Now
on it would be compulsory to have “TWO LAdy” on the 21 member Boards of Directors of each Co-operative Institution. The
representation of the women is just to ensure greater
participation of all sections in the decision-making of the Co-operatives, in consonance
with directions of the Centre & Constitution of India. The said amendment also provides for
inducting Professional persons in the Managing Committee, with likely interference
from the Govt. Department.
Special
authority to conduct Co-operative Polls, under the aegis of a newly formed Election Authority. Elections of Co-operative bodies
have to be conducted by a separate election authority. Adv. R. P.
Rathod clarifies that at present the elections of all specified
and State funded societies are conducted by the Collector or Co-operation
department. Now a team of separate election authority, led by a Commissioner, Secretary-rank acting
or retired Official appointed by the governor, will be formed to
conduct the elections of Co-operative Societies. However the State Cabinet has
clarified that the existing elected board can complete its tenure and the new
provisions will not be made
applicable to all societies in the State of Maharashtra.
Adv. R. P.
Rathod throws light on some of the amendments
made in the Maharashtra Co-operative Societies Act, 1960.
Salient features of the New Rules
& Reforms in Co-operative Sector:
1. New election authority
to be set up for Co-operative elections.
3. New
definition of a member introduced as “Non-active
members”.
5. Members
failing to attend general body
meetings and who
have no “active participation” will be termed as “non-active
members”;
6. Post
amendment the term of Managing Committee of all societies will be equal to “FIVE YEARS”, presently the Term of
Managing Committee of some societies still continues to be “THREE YEARS”.
7. The
maximum strength a Committee can have is capped
to 21 members,
presently there are no such restrictions in Co-operative Law.
10. AGM
of every society to be called on or before 30th September
& accounts will have to be finalised and approved in the said meeting. At
present the said deadline for finalizing accounts and holding AGM is fixed on
or before 14th August every year.
11. Committee
failing to comply with the said deadline could
be debarred from being in the Managing Committee for a period of Five Years.
12. Members
who have maintenance or service charges arrears pending at the end of a
financial year will be deemed defaulters and will be classified as
“Non-active members”.
14. Recovery Officer will now be appointed
from the Office of the Registrar, Co-operative Societies, who will fix a limit
within which the defaulters will have to make the payment failing which
their water connection will be disconnected
& their premises will be attached and auctioned, for recovering the dues.
15. Co-operative Societies
will have to invest funds only in ‘A’ class
District Co-operative Banks, a move that could make
things difficult for CHS. Adv. R. P. Rathod states that Funds of the CHS in the
State are estimated to be around Rs. 1,000 Crore, most
of these funds are non-performing
and continue to be renewed year after year. There is likelihood that these
funds belonging to General public could be potentially misused. He says that
there is a past history showing many Co-operative District
Banks going defunct. The Govt should re-think and give
option to atleast the CHS to park their funds in Nationalised Banks, as the
money in CHS essentially belongs to the middle class persons.
Adv. R. P.
Rathod states that after these amendments
come into effect, each category of Co-operatives will now have to amend their
respective bye-laws so as to be consonance with these amended provisions.
Adv. R. P.
Rathod states & concludes that the
Objectives of National Policy in Co-operatives, which were announced by the
Union Government are to mainly facilitate the all round
development of Co-operatives in the Country. Under this New Policy,
Co-operatives would be provided necessary support, encouragement and
assistance to enable them to work as autonomous, self-reliant and
democratically managed institutions, which will be accountable to their
members.
He
further adds that the Policy seeks to achieve functioning of
Co-operatives based on Co-operative principles and values, reduction of regional imbalances,
professionalization and greater participation of members in the management, removal or restrictive regulatory regime
and development of an integrated Co-operative structure.
In
the end he summaries that “These amendments are good for the Co-operative movement, but only time
will tell, how the societies will handle the autonomy”.
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