SC Struck Down some provisions of the 97th constitutional amendment related to cooperative societies

SC Struck Down some provisions of the 97th constitutional amendment related to cooperative societies

Recently, the Supreme Court, in a 2:1 majority decision, upheld the validity of the 97th Constitutional Amendment. But the court has quashed a clause inserted by it, which deals with the formation and working of cooperative societies.

  • It is to be noted that this amendment is related to the issues related to the effective management of cooperative societies. At the same time, the court has declared Part 9B of the Constitution related to cooperative societies as invalid.
  • Part 9 B of the Constitution of India is effective only so long as it relates to multi-state co-operative societies in different states and union territories of India.
  • The Supreme Court observed that Article 368(2) of the Constitution requires ratification by at least half of the State Legislatures, as it pertains to an entry which deals with a subject in the State List.
  • Article 368 deals with the power of the Parliament to amend the Constitution.
  • According to entry 32 in List 2 of the Seventh Schedule, co-operative societies are a state subject. In this regard, the bench noted that the 73rd and 74th Amendments (which include provisions relating to Panchayats and Municipal Corporations respectively) had been referred to the States for their ratification.

Provisions made by the 97th Constitutional Amendment Act, 2011

  • Article 19(1) (C) was included to make the right to form cooperative societies a fundamental right.
  • Article 43B was inserted in Part-4 (Directive Principles of State Policy) of the Constitution. The State shall endeavor to promote voluntary formation of co-operative societies, their self-governing functioning, democratic control and professional management.

Source – The Hindu

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