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.
