The 97th amendment of the Indian Constitution gave special constitutional status and protection to all the cooperative societies prevailing in India. In the same context, it also made three changes in the act. It boosted federalism as the 97th amendment act passed in 2011 shrank states’ authority over their cooperative societies. These cooperative societies are a major reason for contributing to the economy. The International Labour Organisation (ILO) defines the cooperative as an association that is autonomously run by persons united voluntarily to meet a common economic, social or cultural need through a joint and democratically controlled enterprise. The Union government of India also has several laws.

About 97th Amendment

The Supreme Court (SC) affirmed a 2013 Gujarat High Court decision that invalidated some parts of the 97th amendment act passed in India in 2011. Part IX, introduced in the 97th amendment of the Indian constitution act, was elaborated on the terms of running cooperative societies.

The Constitution (97th Amendment) Act, 2011 governs cooperative societies in India. It tries to overcome all the challenges experienced by these communities and bring forth an effective technique to handle them. The 97th Constitution Amendment Act of 2011 provides the following amendments: Added the words’ or Co-operative Societies’ after the words’ or Unions’ in Article 19(I) c. It also added Article 43B to Part IV of the Constitution, which states that “the State shall endeavour to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies” and that “the State shall endeavour to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies.” Part IX-B of the Constitution was added after Part IX-A. Article 243ZH through 243ZT was added to Part IX-B.

Constitutional Amendment

 The Supreme Court upheld the validity of The 97th amendment of the Indian Constitution (Part IX B) that deals with issues related to effective management of cooperative societies but struck down a part inserted by it that relates to the Constitution and the operation of cooperative societies in a 2:1 majority verdict.

A bench of Justices R F Nariman, KM Joseph, and B R Gavai issued the decision, which affirmed a 2013 Gujarat High Court decision that set down portions of the amendment. 

Key Points on The 97th Constitutional Amendment Act passed In India.

The 97th Amendment Act of 2011 granted cooperative societies constitutional recognition and protection. In this context, it amended the Constitution in three ways:

• It established the right to organise cooperative organisations as a basic right (Article 19)
• It includes a new State Policy Directive Principle on promoting Cooperative Societies (Article 43B)
• It inserted a new Section IX-B to the constitution, named “The Cooperative Societies” (Article 243-ZH to 243-ZT)
• Parliament passed the amendments’ provisions without getting them ratified by state legislation and the Constitution in article 19 (1)(c ) under Part III of the Constitution

Arguments presented by the Central Government

• It justified the Union government of India’s introduction of “professionalism” and “autonomy” into the operation of societies
• Members’ lack of responsibility has resulted in poor services and low productivity
• Elections are also not held on schedule. Cooperatives must operate on well-established democratic norms

SC’s Ruling

• Exclusive Legislation of States: The Constitution has deciphered as quasi-federal in which there is a tilt in favour of the Centre and states given the federal supremacy. This principle explains that states have exclusive power to legislate on the topics reserved exclusively for them. It is clearly stated by the court that how article 243 ZI makes it clear that states can make law on the incorporation, regulation and winding up of a society under this act
•  Not Ratified by the States: It is clearly stated that the 97th Constitution amendment requires ratification by at least one-half of state legislations. As per article 368(2) of the Constitution, the Parliament can amend the Constitution by passing a bill with a special majority
• Upheld the Validity of Provisions related to Multi-State Cooperative Societies: The Constitution described quasi-federal in a tilt favouring the Centre and the states. However, within their sphere, the states have exclusive rights to legislate on topics that are reserved exclusively. They pointed out how it is made clear that states may only make a law on the incorporation, regulation and winding up of a society of The 97th amendment of the Indian Constitution

Conclusion

The 97th amendment of the Indian Constitution done in 2011 governs cooperative societies in India. The cooperative sector has made significant contributions to various sectors of the national economy. They have achieved enormous growth in the years. These societies have immense potential to serve the poorer sections of Indian society. It also ensures equitable economic development. The Constitution amendments made in the same are quite appropriate and praiseworthy because the Government wanted to overcome all the problems faced by the societies and how they could efficiently manage them. The expansion of cooperatives on a vast scale was envisioned as part of the efforts to ensure social and economic fairness and the equal sharing of development’s rewards.