Supreme Court quashes part of Cooperative Amendment 

  • IASbaba
  • July 21, 2021
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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.

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