Now Reading: State Council Blocks Souharda Co-op Bill, Sparking Government Setback
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State Council Blocks Souharda Co-op Bill, Sparking Government Setback
Quick Summary:
- The Karnataka Souharda Sahakari (Amendment) Bill, 2025 was voted down in the Legislative Council on Wednesday by Opposition BJP and JD(S), after having previously passed in the Assembly.
- Earlier this year, Governor Thaawarchand Gehlot had returned this Bill along with another-Karnataka Cooperative Societies (Amendment) Bill, 2024-requesting reconsideration and modifications due to unsatisfactory clarifications from the government.
- the proposed amendment seeks to mandate maintaining 20% of total deposits as State statutory Liquid Reserve (SLR) to address misappropriation issues. It also requires annual declaration of assets and liabilities by candidates, directors, and CEOs for improved transparency.
- Opposition leaders argued that reserving 20% under SLR is unwarranted since many cooperative members already face withdrawal challenges; they opposed certain clauses like annual asset declarations as impractical.
- Chairman basavaraj Horatti announced rejection of the Bill after a vote tally showed 23 legislators in favor versus 26 against it.
Indian Opinion Analysis:
The rejection of the Karnataka Souharda sahakari (Amendment) Bill highlights notable political resistance against regulatory changes proposed for cooperative societies in Karnataka. While proponents argue that these measures are aimed at promoting transparency and better financial safeguards through statutory reserves and accountability provisions, critics suggest that certain mandates could strain cooperative institutions further by limiting their versatility or adding undue bureaucratic burdens.
This progress underscores tensions between legislative intention to reform governance structures within cooperatives versus practical concerns expressed by stakeholders reliant on these systems for financial stability.The Governor’s earlier remarks pinpointed unconvincing explanations concerning amendments-potentially signaling gaps in consensus-building efforts amid widespread stakeholder implications for industries regulated under cooperative frameworks.
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