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Vinson Kurian

`It is necessary to enable businesses registered as co-operatives to have at least the same degree of freedom to conduct their affairs, if only they are to have a fair chance of competing successfully with other businesses.'

THIRUVANANTHAPURAM, Dec. 16

THE first report submitted by the Law Reforms Committee appointed by the State Government has recommended a legislation to promote self-reliant and autonomous co-operative societies and make the co-operative movement more vibrant and free of any kind of restriction imposed by the State.

Titled The Kerala Self-Reliant Co-operative Bill, 2002, the report on the statement of objects and reasons highlights the need for giving co-operatives greater autonomy and encouragement to pursue the legitimate interest of the members in an effective, self-reliant, responsible, accountable and democratic manner.

The State Government, it says, is also appreciative of the need for legislation for ordinary people who, while expecting to benefit from the co-operative form of business without being dependent on Government resources, seek to voluntarily promote and effectively develop services for themselves through their own co-operatives.

Co-operative financing organisations such as National Bank for Agriculture and Rural Development (Nabard), National Co-operative Development Corporation (NCDC) and National Dairy Development Board (NDDB) also have been seeking ways by which they can, wherever possible, hope to deal directly with co-operative societies without necessarily having to involve the Government.

There are also cases of some co-operatives which may have some Government funds but are not dependent on such funds or on Government assistance in other forms for their survival.

These co-operatives need to be given greater autonomy in the conduct of their business, according to the report.

Delving into the history of law making in the co-operative sector, it said that laws have been in force in the country from the early 20th century.

The Acts formulated during British rule provided for considerable Government control, as was the case in respect of people's institutions those days.

After Independence though, considerable importance was given to the spread and growth of co-operatives in different sectors.

However, since most of them were formed under the development plans with Government initiative and finance and under Government-sponsored programmes, the earlier restrictions from the Government continue to form part of the enactments on co-operative societies that were brought forward in the 1950s and 1960s.

In the early 1960, the co-operative legislation all over the country underwent major changes with a view to enabling State and Union Governments to play an active role in the promotion and development of co-operatives.

The Kerala Co-operative Society Act, 1969 was enacted, which provided an active role for the State Government in all activities of the co-operative movement.

"At a time when deregulation and liberalisation are enabling other forms of business to break new ground, it is necessary to enable businesses registered as co-operatives to have at least the same degree of freedom to conduct their affairs, if only these businesses are to have a fair chance of being able to compete successfully with other businesses," the report said.

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