What are reasons for the 97th Amendment Act, 2011?

Q.  Which of the following are reasons for the 97th Constitutional Amendment Act of 2011?

1) Performance in qualitative terms has not been up to the desired level.
2) Revitalize these institutions.
3) To ensure that the co-operative societies in the country function in a democratic, professional and economically stable manner.
4) Unprofessional management.

- Published on 16 Mar 17

a. 1, 2 and 3
b. 2 and 4
c. 2 and 3
d. All of the above

ANSWER: All of the above
 
    The reasons for the 97th Constitutional Amendment Act of 2011 are -

  • Over the years, the co-operative sector has made significant contribution to various sectors of national economy.

  • It has achieved large growth.

  • But, it has shown weaknesses in safeguarding the interests of the members and fulfillment of objects for which these institutions were organized.

  • There have been incidences where elections have been postponed indefinitely; nominated office bearers have remained in-charge of these institutions for a long time.

  • This reduces the accountability of co-operative societies to their members.

  • There is inadequate professionalism in management which leads to poor services and low productivity.

  • Co-operatives need to run on democratic principles and elections held on time and in a free and fair manner.

  • Hence, there was a need to initiate fundamental reforms to revitalize these institutions and also to guarantee their autonomy, democratic functioning and professional management.

  • The “co-operative societies” is a subject enumerated in Entry 32 of the state list of the Seventh Schedule of the Constitution.

  • The State Legislatures have accordingly enacted legislations on co-operative societies.

  • Within the framework of State Acts, growth of co-operatives on large scale was envisaged as part of the efforts for securing social and economic justice.

  • But, in spite of considerable expansion of co-operatives, their performance in qualitative terms has not been up to the desired level.

  • Considering the need for reforms in the Co-operative Societies Acts of the States, a strong need had been felt for amending the Constitution so as to keep the co-operatives free from unnecessary outside interferences.

  • It also ensures their autonomous organizational set up and their democratic functioning.

  • The Central Government was committed to ensure that the co-operative societies in India function in a democratic, professional and economically stable manner.

  • For this, it was proposed to incorporate a new part in the constitution so as to provide for certain provisions covering the vital aspects of working of co-operative societies.

  • It was expected that these provisions will ensure accountability of management to the members and other stakeholders and shall provide as a deterrent for violation of the provisions of the law.

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