Tsunami in Gujarat co-ops

The Gujarat government decision to appoint “custodians” in those cooperatives societies where elections have not taken place, has shaken the cooperative world violently.

While govt quotes the compulsion of Gujarat Cooperative Societies (Amendment) Bill 2015, Opposition sees in it an effort to “cleanse” co-ops from Congress influence.  Among the 100 co-ops under cloud three led by senior congressmen such as Natu Patel and Vipul Chaudhary have become theme of cooperative gossip in the state.

Natu Patel who heads both MDCB and GUJCOMASOL who had been accused of a Urea scam in the past  is accused of delaying the election for ten years to remain in power. Vipul Chaudhary, Chairman  of Mesana or Dudhsagar milk union had been facing corruption charges and was recently removed by the High Court Gujarat State.

Natu Patel is also on the board of cooperative giant IFFCO. He contested unsuccessfully for ICA board where this very urea scam proved his nemesis. It was later the efforts of Dr U S Awasthi that another IFFCO candidate Adtiya Yadav could make it to the ICA Board last year.

But insiders look at it from the political eye and see in it as a fight for supremacy between Congress and BJP. They remind that Natu Patel is a Congressman and had contested against Nitin Patel from Mehsana in 2012 Gujarat Assembly election. Nitin Patel is a Minister and spokesperson of the state govt.

The Gujarat Cooperative Societies (Amendment) Bill 2015 which was passed last month has been employed by the govt after a cabinet meeting a couple of days ago to appoint custodians  at two most powerful co-operative societies  Mehsana Dudh Utpadak Sahkari Mandali and Mehsana District Cooperative Banks, which have Congress influence. This was just seen as government beginning to take charge of these cooperatives, at least for a year, quotes Indian Express.

The important provisions of the amended Act include empowering the govt to appoint custodians. The new rule says that an elected body will by default stand dissolved with completion of its 5-years term. So far, the bodies used to function until the society’s next elections. The amended clause 74(D) says, “Where in respect of any society, including a society existing immediately before the commencement of the Gujarat Co-operative Societies (Amendment) Act 2015, a new committee of management is, for any reason whatsoever, not elected before the expiry of the term of the office of members of a committee of management of such society or having been elected not functioning within a period of three months, the registrar shall by an order writing, appoint a person or a committee of persons to be the custodian of the society for a period of one year or until a new committee of management is elected or, as the case may be, starts functioning.”

The new act also mandates online audit for the cooperative societies, the government may initiate disciplinary action against many other societies. Besides, societies whose office- bearers have completed over two-and-a-half years, will have to go. As per the amended act, the term has been reduced to 2.5 year from 5 years, quotes Indian Express.

Gujarat BJP government however says that it is not a political move. But the act was amended to bring order in the cooperative societies.

 

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