The Multi-State Co-operative Societies (Amendment) Bill 2022 is aimed at overhauling the Multi-State Cooperative Societies Act, 2002
Cooperatives are organizations formed at the grassroots level by people to harness the power of collective bargaining in the marketplace. It is a state subject.
- Cooperatives of more than one state are registered under the Multi-State Co-operative Societies Act (MSCS) of 2002 Act.
- Their board of directors has representation from all the states they operate in.
- Administrative and financial control of these societies is with the central registrar, with the law making it clear that no state government official can wield any control over them.
Federal Issues concerning the bill:
- No provision of the Constitution makes way for merging a cooperative society, which is incorporated under State law with a Multi-State Cooperative Society.
- The Centre is indirectly encroaching on the rights of State Co-operative Societies through the introduction of the clause concerning the merger.
- Beyond the legislative competence of the Union as State cooperative societies are within the exclusive jurisdiction of States.
