Governor SC Jamir has given his assent to the Odisha Cooperative Societies Amendment Bill, 2013 and the Odisha Self-Help Cooperative Repeal Bill, 2013.
Jamir on Monday cleared both the Bills, which were passed by the Odisha legislative Assembly (OlA) during its last session.
Repealing the Odisha Self-Help Cooperative Act, 2001, the State Government had promulgated an Ordinance, the tenure of which ended on October 1. And now with the Governor’s assent, the Bill has become an Act.
The Ordinance had been promulgated with a view to bringing all the cooperative bodies registered under the Act within the purview of the Odisha Cooperative Societies Act, 1962 so as to have a single cooperative Act as per the Constitution of India.
The ordinance was challenged in a writ petition filed in the Odisha High Court by Pandit Dindayal Multi-Purpose Cooperative Society limited of Basta, Baleswar. The High Court stayed the operation of the Ordinance so far as it related to the concerned cooperative while issuing notice to the Government to file its counter-affidavit.
However, the ordinance ceased on October 1 and the Governor gave his assent to the Bill, which is now an Act, said an official. Earlier, the Governor had signed the Odisha Self Help Cooperatives (Repeal) Ordinance, 2013 and the Department of Cooperation notified it in the State Gazette. Prior to that, the State Cabinet had approved the proposal on May 14, 2013.
With the new Act coming into effect, all the 1,634 self-help cooperatives will go for amendment in their Articles of Associations and reconstitute the Board of Directors, said the official. If they fail to do so, they would be taken over by the Registrar of Cooperative Societies to amend such changes in the organisations as per the provisions of the Odisha Cooperative Societies Act, 1962, which has recently been amended in conformity with the 97th Amendment of the Constitution.
Now, the Government would be able to take up audit of these cooperatives and examine their Books of Accounts, said the official. Out of these cooperatives, there are 1,000 plus Credit Cooperative Societies which are involved in chit fund activities, he informed.
In order to restrain these organisations from duping investors, the Department of Cooperation mooted the repeal proposal. Now, the Credit Cooperative Societies would face tough scrutiny, said the official source.