In a major development, Karnataka Governor Thaawarchand Gehlot has refused to assent to two key cooperative amendment bills passed by the state legislature — the Karnataka Cooperative Societies (Amendment) Bill, 2024 and the Karnataka Souharda Cooperative (Amendment) Bill, 2024. Instead, he has forwarded them to the President of India for review.
The bills aimed to bring structural changes in the state’s cooperative sector, including the dissolution of the independent Cooperative Election Authority and the transfer of election duties to the Registrar of Cooperative Societies.
They also proposed to increase the number of government-nominated members in cooperative societies, with the stated aim of ensuring representation for underrepresented communities.
The Governor objected to both provisions, arguing that they undermine the autonomy and democratic functioning of cooperative institutions. He stated that allowing nominated members to vote would dilute the authority of elected representatives and open the door for political interference.
The two bills were passed during the July 2023 session of the Assembly. After months of consultations and clarifications between the government and Raj Bhavan, the Governor officially informed the state that he could not approve the bills, citing violation of cooperative principles and threats to institutional independence.
