Karnataka Governor returns two cooperative Bills

Thaawarchand Gehlot

Thaawarchand Gehlot
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Karnataka Governor Thaawarchand Gehlot has returned two cooperative Bills to the State government, requesting reconsideration and modifications before they are resubmitted.

The Governor has deemed the government’s previous clarifications on the Karnataka Cooperative Societies (Amendment) Bill, 2024, and the Karnataka Souharda Sahakari (Amendment) Bill, 2024, as “not satisfactory”.

The cooperative societies Bill aims to amend the Karnataka Cooperative Societies Act, 1959. Major provisions of the Bill included increasing government nominations on the boards of higher cooperative bodies, such as the State’s apex bank, to three. These nominations are designated for members from SCs and STs, women, and individuals from the general category. This amendment will expand the board of directors of the apex bank from 22 to 25 members, which would enhance the government’s influence in the decision-making processes.

Mr. Gehlot’s objections were directed at the provision granting voting rights to all nominated members. He stated that granting of voting rights to all nominated members was not the right course of action, as control of the society would be taken by them. The Governor opined that “this is not a democratically sound move as the rights of elected members will be taken away through the backdoor efforts”.

Further, concerns were expressed regarding the proposal to abolish cooperative election authorities, with independent and fair elections deemed essential despite financial burden concerns.

The souharda Bill proposes changes to the Karnataka Souharda Sahakari Act, 1997. It aims to amend definitions, adjust voting rights, refine election procedures, and modify the management structures of cooperative societies. It aims to introduce provisions to grant voting rights to all members, including defaulters, and reservations in the boards of secondary cooperatives, federal cooperatives, and apex cooperatives.

The Governor said, “Instead of giving voting rights to all the defaulters, a proper method should be brought in to prevent them from voting.” The Governor said the proposal on the abolition of cooperative election authorities on the grounds of financial burden was not proper in the interest of independent and fair conduct of elections of cooperative societies.

The Budget session of the legislature, which commences on Monday, is likely to introduce changes in the two Bills.

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