Seeking revision, Karnataka governor returns two cooperative bills

Karnataka governor Thaawarchand Gehlot has returned two cooperative amendment bills to the state government, asking for modifications before they are reconsidered. The governor found the government’s clarifications on the Karnataka Co-operative Societies (Amendment) Bill, 2024, and the Karnataka Souharda Sahakari (Amendment) Bill, 2024, inadequate.

One of the key concerns raised by Gehlot was the provision in the Co-operative Societies Bill granting voting rights to all nominated members. He argued that this could lead to nominated members taking control of cooperative societies at the cost of elected representatives, undermining democratic principles. “I am of the opinion that giving voting rights to all the members nominated is not the right course of action. It will allow them to take control of the society. This is not the democratically sound move as the rights of the elected members will be taken away through the backdoor. It is a step to weaken the democracy/autonomy of the co-operative sector. Re-think on this matter,” he said.

Another issue flagged by the governor was the proposed abolition of cooperative election authorities. While the government cited financial constraints as a justification, Gehlot emphasised the need for independent and fair elections in cooperative institutions.

The Karnataka Souharda Sahakari (Amendment) Bill, 2024, also faced scrutiny, with the governor rejecting the government’s clarifications on voting rights for loan defaulters. He suggested that rather than granting all defaulters the right to vote, a structured mechanism should be put in place to regulate their participation. “Instead of giving voting rights to all the defaulters, a proper method should be brought in place to prevent them from voting,” he said.

The decision comes after the governor recently returned three other bills to the state government, citing the need for further clarity.

The Karnataka Co-operative Societies (Amendment) Bill, 2024, aims to amend the Karnataka Co-operative Societies Act, 1959. One of its key provisions is the increase in government-nominated members on the boards of higher cooperative bodies, including the state’s apex bank. The number of government-appointed nominees will rise to three, with positions reserved for representatives from Scheduled Castes, Scheduled Tribes, women, and the general category. This change would expand the apex bank’s board from 22 to 25 members, potentially increasing government influence over cooperative decision-making.

Meanwhile, the Karnataka Souharda Sahakari (Amendment) Bill, 2024, proposes amendments to the Karnataka Souharda Sahakari Act, 1997. It introduces changes to definitions, voting rights, election procedures, and governance structures within cooperative societies. Among its notable provisions is the extension of voting rights to all members, including defaulters, along with the implementation of reservations in the boards of secondary, federal, and apex cooperatives.

Law and parliamentary affairs minister HK Patil said that in the legislative assembly, at least seven bills were awaiting the governor’s approval. These included the Mysuru Development Authority Bill, Karnataka State Universities (Amendment) Bill, Chanakya University (Amendment) Bill, and Karnataka State Rural Development and Panchayat Raj University (Amendment) Bill.

Additionally, five bills remain under review with the administrative department, with the governor seeking further clarifications. These included Karnataka Cooperative Societies (Amendment) Bill, Karnataka Souharda Sahakari (Amendment) Bill, Gadag Betagiri Business, Culture and Exhibition Authority Bill, Karnataka Hindu Religious Institution and Charitable Endowments (Amendment) Bill, and Karnataka Mineral Rights Tax Bill.