The President of National Federation of Urban Cooperative Banks and Credit Societies, Laxmi Das, met Devendra Kumar Singh, Chairperson of the Cooperative Election Authority (CEA), last week to raise key concerns regarding amendments to the Multi-State Cooperative Societies Act (MSCS Act).
During the meeting, Das urged the Authority to restore provisions that existed prior to the 2023 amendment.
He pointed out that under the earlier framework; no administrator could be appointed if elections to multi-state cooperative societies were delayed. However, the amended Act now permits such appointments, a move he termed detrimental to the autonomy and democratic functioning of cooperatives.
Speaking after the meeting, while talking to the Indian Cooperative correspondent, Das said the issue was discussed in detail and emphasized that the new provision could undermine member-driven governance. “The earlier Act safeguarded cooperatives from external intervention in case of election delays. The amendment has altered that balance, which needs reconsideration,” he noted.
Das also raised concerns over the requirement of a 10% quorum for general body meetings of multi-state cooperatives, even after adjournment due to lack of quorum. Referring to recommendations made by the CEA at a recent seminar held at Vigyan Bhawan, he said the condition is impractical, particularly for large societies with memberships exceeding one lakh.
“Earlier, if a meeting was adjourned briefly, quorum was not mandatory upon reconvening. The new recommendation makes it difficult for large cooperatives to conduct their general body meetings smoothly,” he added.
R. K. Gupta was also present during the discussions. According to Das, CEA officials responded positively to the concerns raised by NAFCUB and indicated an openness to reviewing the proposals.