The Supreme Court struck down parts of the 97th amendment to the Constitution that sought to crimp powers of the state governments over their cooperative societies; the National Cooperative Union of India (NCUI) expressed unhappiness over the judgement and hoped that the new cooperatives ministry will find a way out of the same.

What

  1. It also wanted formulation of a National Policy on Cooperatives, which will ensure that there is uniformity in cooperative acts across the states so that there is transparency in them which in turn strengthens the cooperative movement.
  2. NCUI is an apex organization of the cooperative movement.
  3. The Supreme Court in a landmark judgement on 20 July 2021 upheld a 2013 Gujarat High Court verdict that had struck down certain portions of the 97th constitutional amendment passed by the Parliament.
  4. The Amendment was passed by Parliament in December 2011 and had come into effect from 15 February 2012.
  5. The amendments apart from making Right to Form cooperatives a fundamental right had also laid several guidelines for the state legislations governing the cooperative societies.
  6. These according to some experts included mandatory registration of cooperatives, minimum qualification of the Board Members of a Cooperative, their tenure also the timeframe for which a state government can take over the governance of a coop society.
  7. The Supreme Court in its judgement while upholding the Gujarat High Court Order had saved the application of the amendments for Multi-State Cooperative Societies which come under the jurisdiction of the Central government.
  8. The apex court judgement that upheld the supremacy of state governments in governing the cooperative societies that fall within their jurisdiction could have far reaching ramifications in light of fears being expressed in some quarters over the new cooperative ministry interfering in their domain.