MULTI-STATE COOPERATIVE SOCIETIES (AMENDMENT) BILL, 2022

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Context: The Multi-State Cooperative Societies (Amendment) Bill was passed by the Lok Sabha to strengthen cooperatives by introducing transparency and establishing a system of regular elections.

Details

• The bill proposes several key provisions to reform the functioning of multi-State co-operative societies.

Main features and objectives of the Bill:

• Strengthening Cooperative Governance: The Bill seeks to reform the composition of the Board of multi-State cooperative societies to ensure efficient and transparent governance.
• Establishment of Cooperative Election Authority: The Bill proposes the establishment of a "Co-operative Election Authority" that will consist of a chairperson, vice-chairperson, and members from the Union government. This authority will be responsible for conducting elections in cooperatives independently, reducing interference from the government.
• Regular Elections: The introduction of an independent election authority will ensure that regular elections are conducted in cooperatives, promoting democratic processes and reducing any undue influence on the election process.
• Revival Fund for Sick Cooperatives: The Bill also includes the establishment of a "rehabilitation, reconstruction, and development fund" to support the revival of "sick multi-State co-operative societies" facing financial difficulties.
• Improved Transparency: The provisions in the Bill aim to bring more transparency to the composition of the cooperative society's board and ensure fair and impartial elections similar to those conducted by the Election Commission.
• Mandatory Board Meetings: The Bill mandates that the board of multi-State cooperative societies must hold meetings every three months, which will enhance regular communication and decision-making.

By passing this Bill, the government aims to revitalize the cooperative sector, which has been overlooked by previous administrations. The proposed reforms are intended to promote accountability, efficiency, and democratic governance within multi-State cooperative societies.

Must-Read Articles:

MULTI-STATE COOPERATIVE SOCIETIES (AMENDMENT) BILL, 2022: https://www.iasgyan.in/daily-current-affairs/multi-state-cooperative-societies-amendment-bill-2022-23

https://www.thehindu.com/news/national/multi-state-cooperative-bill-passed-by-lok-sabha/article67120221.ece#:~:text=The%20Multi%2DState%20Cooperative%20Societies,Sabha%20on%20Tuesday%20amid%20din.