BENGALURU: The Legislative Assembly on Monday passed The Karnataka Co-operative Societies (amendment) Bill, 2024, to increase the government’s nomination to three on boards of higher cooperative bodies, including the state’s apex bank, by ensuring reservation to SC/ST communities, women and a person from the general category as directors. The number of board of directors of the apex bank, which is now 22, will go up to 25 and the government may have an upper hand in decision-making.
Some BJP legislators opposed the Bill, accusing the government of bringing the cooperative sector under its clutches. But Cooperation Minister Kyathasandra N Rajanna eventually got the bill passed promising that certain “loopholes”, if any, will be rectified. BJP MLAs expressed concern over giving voting power to nominated directors in the elections.
Law and Parliamentary Affairs Minister HK Patil suggested certain changes, keeping in view the long-term impact on the sector. As per the Bill, one each seat for members of either SC or ST, for women and for other categories will be reserved with an intention to ensure social justice and opportunity to the deprived and unrepresented sections of society in the cooperative movement. The sub-section (4B) of Section 28-A of Karnataka Co-operative Societies Act, 1959, provides for nomination by the state government as its representative on the board of every assisted society other than the board of the primary agricultural credit cooperative society.
‘Bill will have adverse impact on co-op sector’
It is also proposed to amend Section 39AA to abolish the Co-operative Election Authority and to create a Cooperative Election Wing under the control of Registrar. The government attributed it to the recommendation of the Second Administrative Reforms Commission to reduce the additional expenditure on the maintenance of the Co-operative Election Authority.
Siddu Savadi, Terdal MLA, alleged that the Bill will have an adverse impact on the cooperative sector. When he stated that the government wanted the Bill to be passed to rehabilitate its supporters by converting the cooperative institutions into “ganji kendras” (gruel centres) for them, the Congress MLAs took him to task.
Leader of Opposition R Ashoka clarified that the BJP is not against reservation. Basanagouda Patil Yatnal attacked the government stating that it will have a negative impact as directors nominated from outside may spoil cooperative institutions.
The Assembly also passed the Karnataka Souharda Sahakari (amendment) Bill, 2024, with similar objectives.