Understanding the Multi-State Co-operative Societies (Amendment) Act, 2022

Overview of the Multi-State Co-operative Societies (Amendment) Act, 2022

The Multi-State Co-operative Societies (Amendment) Act, 2022, introduces significant changes to the Multi-State Co-operative Societies Act, 2002. This amendment aims to enhance the governance and operational efficiency of multi-state co-operative societies in India.

Changes in Election of Board Members

One of the most notable changes in the amendment is the alteration in the election process for board members. Previously, elections were conducted by the existing board of the society. Now, these elections will be overseen by the Co-operative Election Authority, which has been established by the central government. This Authority comprises a chairperson, a vice-chairperson, and up to three members, all appointed based on recommendations from a selection committee.

Redressal of Complaints

Another key feature of the amendment is the introduction of Co-operative Ombudsman(s) appointed by the central government. The Ombudsman plays a crucial role in investigating complaints lodged by members of co-operative societies. These complaints may pertain to issues such as deposits, equitable benefits, or individual rights. The Ombudsman is mandated to complete the inquiry and adjudication process within three months of receiving a complaint. If members wish to appeal against the Ombudsman's directions, they must do so within one month to the Central Registrar.

Facilitating Amalgamation of Co-operative Societies

The Act also streamlines the process of amalgamation for co-operative societies registered under state laws into existing multi-state co-operative societies. This process requires a resolution that must be passed by at least two-thirds of the members present and voting at a general meeting, thus ensuring that members have a significant say in the decision-making process.

Aims of the Amendment

The primary objective of the Multi-State Co-operative Societies (Amendment) Act, 2022, is to improve the governance of multi-state co-operative societies. By introducing these changes, the Act seeks to ensure more effective administration and better protection for the rights of members. This marks a progressive step towards greater accountability and transparency within the co-operative sector.

Frequently Asked Questions (FAQs)

Q1. What is the main purpose of the Multi-State Co-operative Societies (Amendment) Act, 2022?
Answer: The Act aims to enhance governance, streamline elections, and protect member rights within multi-state co-operative societies.

Q2. Who oversees the election of board members in multi-state co-operative societies now?
Answer: The elections are now managed by the Co-operative Election Authority established by the central government.

Q3. What role does the Co-operative Ombudsman play?
Answer: The Ombudsman investigates complaints from society members regarding deposits, benefits, and rights, ensuring timely resolution.

Q4. How can co-operative societies amalgamate under the new Act?
Answer: Amalgamation requires a resolution passed by two-thirds of the members present and voting at a general meeting.

Q5. What is the time frame for the Ombudsman to resolve complaints?
Answer: The Ombudsman must complete the inquiry and adjudication process within three months of receiving a complaint.

UPSC Practice MCQs

Question 1: What authority manages the election process for board members in multi-state co-operative societies after the amendment?
A) Existing board of the society
B) Central Registrar
C) Co-operative Election Authority
D) State Government
Correct Answer: C

Question 2: Who appoints the Co-operative Ombudsman according to the new Act?
A) State Government
B) Society Members
C) Central Government
D) Election Authority
Correct Answer: C

Question 3: What is required for the amalgamation of co-operative societies under the new Act?
A) Approval from the State Assembly
B) Resolution by two-thirds of members
C) Consent from the Ombudsman
D) Endorsement by the Central Registrar
Correct Answer: B

Question 4: How long does the Ombudsman have to resolve a complaint?
A) One month
B) Two months
C) Three months
D) Six months
Correct Answer: C

Question 5: What is one of the main goals of the Multi-State Co-operative Societies (Amendment) Act, 2022?
A) Increase member fees
B) Improve governance and transparency
C) Limit member participation
D) Reduce the number of societies
Correct Answer: B