Recently, the Supreme Court of India struck down certain parts of the Cooperative Amendment. Delineate the reasons for the same.
Recently, the Supreme Court of India struck down certain parts of the Cooperative Amendment. Delineate the reasons for the same.
The 97th constitutional amendment, which dealt with issues related to effective management of co-operative societies in the country, was passed by Parliament in 2011.
Issue:
- It had provisions which dictated the terms for running co-operative societies. It also went to the extent of determining the number of directors a society should have and also their length of tenure.
- However the most thorny issue was that the amendment was passed by Parliament, without getting them ratified by State legislatures as required by the Constitution which jeopardised the legislative federalism enshrined in our constitution.
Union Government’s Stand:
- The Union Government justified its move by highlighting the need for injecting professionalism and autonomy into the functioning of the societies.
Supreme Court’s observations:
- However, the Supreme court asserted that the matter which is under scanner falls under the exclusive legislative power of State legislatures.
- In this regard it pointed the Articles 243ZH to 243ZT in Part IX B as well as Entry 32 of the State List in the Constitution.
- Particularly, the Article 243ZI makes it very clear that only a State may make law on the incorporation, regulation and closure of a society.
- The Supreme court also held that the 97th Constitutional Amendment required ratification by at least one-half of the state legislatures as per Article 368 (2) of the Constitution, since it dealt with an entry which as an exclusive state subject (co-operative societies)
Road Ahead:
The Union Government should be extra vigilant in maintaining as well as nurturing federalism in all possible dimensions. The mere intention of bringing professionalism at the cost of federalism will certainly bring more harm than good.
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