Vidyadhar Anaskar Chairman Maharashtra UCB Federation
On behalf of the federation, I welcome the verdict but it took over nine years to announce the Judgment. During these 9 years the Sector fought many legal battles unnecessary. Now the powers of Central and State governments are clearly defined.
As far as the state co-op Act is concerned there will be no impact even though they are based on the 97th Constitutional amendment because their respective acts were passed in the legislative assembly by respective states. But this verdict will surely restrict the controls of Reserve Bank of India.
With the passage of Banking Regulation Amendment Act the administrative powers had gone to the apex bank but this judgment will affect the RBI role on non banking related matters like constituting BoM, shares and other issues.
Now the new co-op ministry will work only for Multi-state co op societies. For 100% utilisation of capacity of the new ministry, the central government may bring the constitutional amendment and include the subject of co-operation in the Concurrent list.
Uday Joshi, National General Secretary, Sahakar Bharati
This decision was quite expected. While amending the constitution pertaining to State subject, the then Agri Minister Sh Sharad Pawar didn’t follow the proper procedure to get the consent of more than 50% State Assemblies. However, Hon SC by majority has not struck down the formation of Co Ops as a fundamental right.
Raghavendra Rao, Chairman, Visakhapatnam Cooperative Bank
The 97th Constitutional amendment was a welcome development for the cooperative sector which gives greater autonomy and freedom to cooperative institutions. Because the Central Government had not followed required procedures, the amendment was struck down by the Supreme Court, which is unfortunate. In the light of this judgement, the recent B R Act amendment would also in all likelihood be struck down. The Cooperative sector leadership of NAFCUB hopefully would take necessary steps in this regard.
Subhash Mohite, Chairman, Pune Urban Cooperative Banks Association
The effects of the said judgement can be crystallised only after the entire judgement will be available. So far as the information received from the media , it was said the cooperative is the subject matter of the state list and if the parliament is going to change this subject from state list to the central list there must be consent from or consent of more than 50% of the state legislatures.
At this point various questions arise in the mind that what will be the conditions of the laws amended by the State Legislatures to give effect to the constitutional amendment? Whether those amendments are required to be struck down or they will be continued.