MCS Act 1960 ordnance: Violations galore

Owing to the gravity of matter this question which was part of cooperative query is being published in the Cooperative Coffee Shop to generate debates–Editor

Radhakrishnan Subramanian, Mumbai

In terms of the ordnance issued, all those Societies where elections were scheduled prior to 31st March 2013 stand postponed upto 31st December 2013. However, all other cases wherein the elections were/are due after 31st March 2013, in case the elections are not held the Board shall stand dissolved.

However, so far no clarifications on this point have been issued by the Govt. nor the election commissioner appointed so far. Will it not be contravening the ordnance issued in case no notification is issued in this regard?

I C Naik

Radhakrishnan Subramanian has correctly noticed the chaos in “cooperative sector” in the pioneering State of Maharshtra, though no other State has tried as much as Maharashtra did.

There is one fundamental truth which governs every walk of life including cooperatives. Your observation is correct, there is violation of provisions of ordinance and more serious is contempt of 97th Constitutional (Amendment) Act 2011 in every State.

Breach of provisions of Maharashtra Ordinance is a minor thing. There is utter chaos in Maharashtra Cooperative sector probably CHS is in comma. Almost 3 months after the expiry of a breathing time of 12 months provided in the 97th Constitutional (Amendment) Act 2011 to every State, the Maharashtra legislative Select Committee is looking in to the requirements of 97th Constitutional (Amendment) Act 2011 as far as the M. C. S. Act 1960 is concerned.

Article 243ZT of the 97th Constitutional (Amendment) Act 2011 mandates that any provision in the State Law found to be inconsistent with any provision in newly inserted part IXB of the Constitution of India shall get overruled after 12 months (i.e. on and after 14 2 2013). The inconsistent provisions are declared to be overridden by Constitutional provisions, the Parliament provided with thumping majority as a historical step in December 2011. Then the States have a last laugh!!! Gujarat High Court found the 97th C A A itself was unconstitutional!!! All efforts since 1990 to revamp Co-operatives wasted?

The Maharashtra Cooperation Minister announces that the State Government has on various counts decided to go slow with implementation of provisions the ordinance. {i.e 97th C A A effectively and indirectly}

Post Ordinance, the M. C. S. Act 1960 lacks cohesion and is devoid of provisions on transition solutions. One example is horrifying. The cooperative housing societies having committees with tenure expiring after 14 2 2013 are in law without the valid managing committees, as the new Section 73I(2) provides that “for any reason whatsoever, election of the members of the committee could not be held before the expiry of its term then the members thereof shall cease to hold their office”

This situation is to be tackled as per old Section 77A, wherein the Registrar had already been given power to appoint Administrator to manage such societies if no members were willing. The nomenclature Administrator has been changed to “Authorized Officer” as the former is now prohibited under 97th C A A. Worst situation is still to come. Even if the Registrar by any chance appointed “authorized persons” in necessary numbers, their tenure is restricted to six months. So what after six months? No answer.

The other remote possibility is the States are ganging up against the Centre. Their stance seems to be:
As per new Constitutional policy diktat as per new Article 43B “let every cooperative society be autonomous and member control without the so-called interference of the State.”

And lastly, “cooperative society” seems to be the last priority, with in the whole gamut of governance and especially when the bogy of corruption has been accorded unjustified high priority in people’s movement on every issue.

The life does not stop under any man made situations. Members of cooperatives have to rise to the occasion and become strength to each other and manage their cooperatives exactly as per Article 43B, come what may.

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