MUMBAI: A demand to convene a special session of the state legislature to discuss the proposed amendments to the state cooperative act was raised by legislators on Tuesday.
The 97th constitutional amendment, which came into force last February, makes it binding on the state to amend state cooperatives laws.
Legislators cutting across party lines were of the opinion that certain provisions mentioned in the constitutional amendment could adversely impact the cooperative sector in the state. The centre has asked all states to amend the concerned laws and implement the act by February 15. More than 50% of nation's cooperative societies are situated in the state.
Ganpatrao Deshmukh (Peasants' and Workers Party) raised the demand for a special session, which was supported by MNS's Bala Nandgaonkar and BJP's Ashish Shelar among others.
While the government is unlikely to accede to the demand, state cooperatives minister Harshvardhan Patil indicated that his department too had reservations over certain provisions and would seek a year's extension to implement these.
The amendment contains a provision that bars the state from superseding or suspending an elected board of cooperative societies functioning without financial assistance or shareholding of the government. But, Patil said implementing it would virtually mean the state can no longer appoint administrators on housing societies.
There are over 80,000 housing societies in the state, most of them in Mumbai and Thane. Even in societies with a government stake (state/district coop banks, cotton and sugar factories, credit societies), the suspension cannot exceed six months. Societies would however have to co-opt up to two expert members on its board as functional directors. Members who do not participate in two general body meetings in five years and who have no "active participation" can be degraded as non-active members and stripped of voting rights. Even defaulters can be degraded as "non-active members". The state also has reservations on the move to delink government-appointed auditors from scrutinising society's records.
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