The Bill is also aimed at improving governance and reforming the electoral process of such societies.
The Rajya Sabha today passed the Multi-State Cooperative Societies (Amendment) Bill, 2023, to amend the Multi-State Cooperative Societies Act, 2002.
The Lok Sabha had earlier passed the amendment Bill.
The Bill will improve governance, reform the electoral process, strengthen the monitoring mechanism, improve the Board's composition, and enhance transparency and accountability in Multi-State Cooperative Societies.
The Bill allows state co-operative societies to merge into an existing multi-state cooperative society.
The Bill establishes the Co-operative Rehabilitation, Reconstruction and Development Fund for the revival of sick multi-state cooperative societies. As per the Bill, the central government will appoint one or more Cooperative Ombudsman with territorial jurisdiction.
The Union Cabinet had, in October last year, approved the Multi-State Cooperative Societies (Amendment) Bill, 2022 to improve the ease of doing business, increase financial discipline and enable raising funds in the Multi-State Cooperative Societies.
The move was taken in order to make the governance of multi-state cooperative societies more democratic, transparent and accountable.
The Multi-State Cooperative Societies Act, of 2002 was enacted with a view to facilitating the democratic functioning and autonomous working of multi-State co-operative societies in line with the established co-operative principles.
The government said there is a felt need to amend the Act to bring it in line with the 97th Constitutional Amendment and strengthen the cooperative movement in the multi-State Cooperative societies sector.
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