Question

Consider the following statements regarding the 97th Constitutional Amendment (2012):

1. The 97th Amendment added Part IX-B to the Constitution, titled “The Co-operative Societies.”

2. Article 43B promotes voluntary formation, democratic control, and professional management of co-operative societies.

3. The maximum number of board members in a co-operative society, as per Article 243ZJ, is 25.

4. Co-opted members of a co-operative society’s board have the right to vote in elections.

• A. 1 and 2 are correct
• B. 1, 2, and 3 are correct
• C. 2 and 3 are correct
• D. 1, 2, and 4 are correct

Answer 1

Answer:

A. 1 and 2 are correct

97th Constitutional Amendment Act, 2011

Background and Significance

• The 97th Amendment Act is a landmark legislation aimed at strengthening the cooperative sector in India. It was enacted to address the declining performance and increasing interference in cooperative societies.
• The amendment brought about significant changes to the Constitution related to cooperative societies, recognizing their importance in the socio-economic fabric of the country.

Key Provisions and Additions

• Part IX-B: This amendment inserted Part IX-B into the Constitution, specifically titled “The Co-operative Societies.” This new part provides a constitutional framework for the functioning of cooperative societies.
• Article 43B: This directive principle of state policy was added to the Constitution. It mandates the state to promote voluntary formation, autonomous functioning, democratic control, and professional management of co-operative societies.
• Constitutional Status for Cooperatives: The amendment aimed to give cooperatives a more secure and independent status, moving them from being merely state-controlled entities to self-governing bodies.

Aspects Addressed by the Amendment

• Board Member Composition: The amendment laid down certain guidelines regarding the board of directors of cooperative societies.
• Voting Rights: It clarified rules concerning the voting rights of members, including co-opted members.
• Duration of Board: Provisions were made regarding the term of office for the board of directors.

Judicial Review and Amendments

• Supreme Court's Stance: The Supreme Court, in the Union of India vs. Rajendra Shah case (2012), upheld the validity of the 97th Constitutional Amendment Act, 2011, in its entirety.
• Part IX-B Struck Down: However, in a subsequent judgment in the Navjot Singh Sidhu vs. State of Punjab case (2019), the Supreme Court declared Part IX-B of the Constitution as unconstitutional. This was primarily because the amendment was ratified by only half of the state legislatures, which is required for amendments affecting federalism. The Court held that the subject of cooperative societies falls under the purview of state legislation.

Competitive Exam Relevance

• Understanding the details of this amendment is crucial for exams like UPSC Civil Services, State PSCs, and other competitive examinations where questions on constitutional amendments and Indian Polity are frequently asked.
• Candidates should be aware of the specific articles added or amended and their implications.
• The judicial pronouncements related to the amendment are also important areas for examination.