The Karnataka Souharda Sahakari (Amendment) Bill, 2025, cleared in the Assembly, was narrowly defeated in the Legislative Council on Wednesday. Twenty-three members supported the bill, while 26 BJP-JDS MLCs opposed it, defeating the proposal by three votes.
The bill mandated annual submission of family asset details by Souharda Cooperative Bank members and compulsory audits by government-appointed auditors. It also required societies to keep 20% deposits with Apex or DCC banks and sought prior registrar approval for deposits in scheduled banks.
Law Minister H.K. Patil said the changes aimed to strengthen cooperatives, but opposition parties accused the government of attempting to strangle the sector.
