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97th Constitutional Amendment
Why in news?
- With a 2:1 majority verdict, the Supreme Court upheld the validity of the 97th constitutional amendment but struck down a part related to cooperative society and the way they work.
- This ruling upheld a 2013 Gujarat High Court decision that struck down portions of the amendment.
Co-operatives:
- According to ILO(International Labor organization) cooperatives are self-governed associations of people united for economic, social, and cultural purposes.
- In India we have Consumer Cooperative Societies, Producer Cooperative Societies, Credit Cooperative Societies, Housing Cooperative Societies, and Marketing Cooperative Societies.
- The General Assembly of the UN declared 2012 as the International Year of Cooperatives.
- The Central Government recently created a separate 'Ministry of Co-operation to give a new boost to the cooperative movement.
Reasons for 97th Constitutional Amendment
- Inability of cooperative societies to protect the interests of members and achieving the objectives for which they were formed.
- Member’s lack of accountability leading to poor services and low productivity.
- Elections not held on time.
- Failure of states to resolve these issues.
- Lack of democratic functioning of cooperatives.
The 97th constitutional amendment:
- It dealt with effective management of cooperative societies in the country.
- It was enacted by Parliament in December 2011 and became effective on February 15, 2012.
- To provide cooperatives with protection, it amended article 19(1) (c) and added articles 43 B and Part IX B, which concern cooperatives.
- Part IX B addressed the number of directors a society should have, the length of their tenure, and the expertise necessary to become a member of the society.
Reason: Striking Down
- SC held that certain provisions related to cooperative societies violated the principle of federalism which is part of the basic structure.
- SC held that cooperatives fell under the state list and that state legislatures alone have the authority to legislate upon it.
- Further any change would need the ratification of at least half the state legislatures as stipulated in Article 368(2) of the constitution.
- Part IXB of the Constitution of India only applies to multi-State cooperative societies within India's various States and in its Union territories.
- SC said that if the Centre wants uniformity, it can only use Article 252 which deals with parliament's power to legislate for two or more states by consent.
Conclusion:
- In India, cooperative societies can serve the poorer sections of society and promote equitable economic development. Despite the creation of the new Ministry, the government should take this judgment in the right spirit and play an enabling role in their progress.
Source: The Hindu, the Indian Express.