Supreme Court quashes part of Cooperative Amendment
Part of: GS Prelims and GS – II- Polity
In News: The Supreme Court on Tuesday struck down certain provisions of the Constitution (97th Amendment) Act, 2011
- Gujarat High Court in 2013 had struck down certain provisions of the 97th CAA by reasoning that Parliament cannot enact laws with regard to cooperative societies as it is a State subject. This was appealed by Centre in Supreme Court.
The Constitution (97th Amendment) Act, 2011 made following changes
- New Part IXB regarding the cooperatives working in India added
- Part IXB dictated the terms for running co-operative societies like the number of directors a society should have or their length of tenure and even the necessary expertise required to become a member of the society.
- In Art. 19(1)(c) the word “cooperatives” was added after “unions and associations”. This enables all the citizens to form cooperatives by giving it the status of fundamental right of citizens.
- A new Article 43B was added in the Directive Principles of State Policy (Part IV) regarding the “promotion of cooperative societies”
Key Takeaways of SC Judgement
- Upheld the validity of the 97th constitutional amendment
- However, dissenting judgement by Justice Nariman struck down the entire 97th CAA.
- Struck down part of Part IXB which dealt with cooperative societies confined to states. Court held that co-operative societies come under the “exclusive legislative power” of State legislatures and Centre can’t shrink State’s exclusive authority.
- However, Part IXB of the Constitution is operative only in so far as it concerns multi-State co-operative societies. This is because Multi-State Cooperatives comes under Union List.
- The court also took exception to the fact that the 97th Constitutional Amendment was passed without ratification from the States.
What is the significance of the verdict?
- It allays States’ fears that new Union Ministry of Cooperation would have dis-empowered them.
- Judgement reiterates State’s exclusive legislative power over cooperatives within their territories.