The Supreme Court, in its recent judgment in the case of Union of India v Rajendra Shah and Ors., stripped down the parts of 97th Constitutional Amendment, which dealt with co-operative societies. Speculations have been made that the newly formed Ministry of Co-operation might deal with the relevant issues falling under the severed parts of 97th amendment.
This case annulled Part IXB which had been introduced through the 97th Constitutional amendment, to the extent that it dealt with state-based co-operative societies. The bench observed that the co-operative societies as a subject fall exclusively in the jurisdiction of State Legislatures.
By striking down the parts of 97th Constitutional amendment, the bench upheld the 2013 judgment of Gujarat High Court which had struck down Part IXB on the ground that the said amendment had been passed without fulfilling the proviso to Article 368(2), which mandated requirement of ratification of at least half of the State Legislatures.
This decision of apex court is being assumed to be in line with the newly created Ministry of Co-operation. The reason being, co-operative societies have been a state subject as per the Seventh Schedule of the Constitution, and striking down parts of 97th Constitutional amendment would liberate the powers of Centre.
However, the official press release by the Central government defined the role of Ministry of Co-operation as one which would provide a separate administrative, legal and policy framework, with an aim to strengthen the co-operative movement in the country.
It was further stated that the Ministry would deepen co-operatives and people-based movement would reach up to the grassroots.
As of now, what could be determined by the Constitutional scheme explained by the apex court in the instant judgment, is that the executive power of the newly created Ministry would be with respect to the multi-state co-operative societies only.
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