Kerala Government Explores Legal Measures to Counter Rise of Multi-State Cooperative Societies

In response to alterations made by the central government to the Multi-State Cooperative Societies Act, the Kerala government is reportedly contemplating legal strategies to prevent the potential proliferation of multi-state cooperative societies within the state.

The revisions allow for the integration of state-level cooperative societies with multi-state cooperative societies. In cases of merger, only national registration would remain valid, invalidating state registration. However, the merger can proceed solely if it adheres to the conditions outlined in the cooperative societies acts of the respective states.

Allegedly, the Kerala government seeks to reinforce the Kerala Co-operative Societies Act of 1969 to close any potential loopholes created by the merger option.

The state legislature is currently reviewing a bill aimed at opposing the modifications to the Multi-State Cooperative Societies Act. Within the Kerala Co-operative Societies Act of 1969, Section 14 pertains to amalgamation (merger), asset and liability transfer, and division of societies within the state. Nonetheless, there are no specific guidelines for addressing multi-state cooperative societies. The proposed bill, titled “The Kerala Co-Operative Societies (Third Amendment) Bill, 2022,” is expected to address this concern within the state legislature.

At present, Kerala houses 33 multi-state cooperative societies.