The 97th Amendment Act, 2011, represents a significant legislative milestone in India, designed to bolster the framework of cooperative societies. This amendment introduced extensive provisions within the Constitution to facilitate the establishment and effective management of these entities.
A new section, Part IX B, was added to the Constitution, which elaborates on the formation, administration, and governance of cooperative societies.
The newly inserted Article 43B instructs the State to promote the voluntary formation, autonomous operation, democratic oversight, and professional management of cooperative societies.
Article 19 saw amendments to incorporate the 'right to form cooperative societies'. The phrase “or cooperative societies” was added to sub-clause (c) of clause (1) of Article 19, which relates to the right to establish associations or unions.
This amendment provides cooperative societies with constitutional recognition, aiming to enhance their autonomy, democratic nature, and professional management.
By affirming the right to form cooperatives, the amendment empowers individuals and communities to collaboratively tackle their economic and social challenges.
The State is tasked with fostering the development and growth of cooperatives, ensuring their democratic operation and autonomy.
The implementation of the amendment has encountered obstacles related to harmonizing it with existing state laws and addressing the varied nature of cooperatives across different states.
Certain elements of the amendment, particularly those concerning the autonomy of cooperative societies, have been subjected to legal examination and debate.
The 97th Amendment Act, 2011, signifies a crucial advancement in India’s constitutional and legal framework, reinforcing the importance of cooperative societies in the socio-economic context of the nation. It highlights the vital role of cooperative movements in fostering self-reliance and democratic principles at the grassroots level.
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