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CONSTITUTION (97TH AMENDMENT) ACT, 2011

CONSTITUTION (97TH AMENDMENT) ACT, 2011

Context:

The Supreme Court in a 2:1 majority verdict maintained the legitimacy of the 97th constitutional amendment that deals with issues related to management of cooperative societies but nullified a part related to their setting up and functioning.

97th Constitutional Amendment:

  • It deals with issues related to management of cooperative societies in India.
  • It was passed by parliament in December 2011 and came into effect from February 15, 2012.

About the Recent Decision and Changes:

  • Recently, the Supreme Court upheld a 2013 judgment of the Gujarat High Court and struck down some of the provisions of the Constitution (97th Amendment) Act, 2011.
  • It gave a significant boost to federalism as the 97th Amendment diminished the authority of States over its co-operative societies.

The change in the constitution has amended Article 19(1)(c) to give protection to the cooperatives and inserted Article 43 B and Part IX B.

Article 19(1)(c):

  • It assures freedom to form associations or unions or cooperative societies subject to certain limitations.

Article 43 B:

  • It says that states shall attempt to promote voluntary formation, democratic control, autonomous functioning and professional management of cooperative societies.

The Part IX B of the Constitution Inserted by the 97th Amendment:

  • It deals with incorporation, terms of members of the board and its office bearers and effective management of cooperative societies.

The Centre has asserted that the provision does not take states of their power to enact laws related to cooperatives.

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