Despite all-round flak, Mahayuti moves ordinance to amend co-op law

MUMBAI: Despite the strident objections of Opposition parties, the Mahayuti government has issued an ordinance to amend the Cooperative Societies Act in order to increase the government-nominated directors on cooperative bodies with a turnover of more than ₹500 crore from two to five and also give them voting rights. Maharashtra governor Jishnu Dev Varma approved the amendment on Friday.

With this ordinance, which is a temporary law designed specifically for urgent circumstances, the BJP-led ruling coalition stands accused of undermining the mandate of members of the Kolhapur District Cooperative Milk Producers' Federation (known for its popular milk brand Gokul). It lost the Gokul election to the Congress-backed panel (the Rajarshi Shahu Shetkari Samvichari Aghadi) led by Satej Patil, where the RSSSA won 13 seats while its own panel could win only 12. Following this, on Wednesday it took a decision to amend the Act via the ordinance route rather than a bill which has to be passed by the assembly.

An official told HT that the decision to grant voting rights to four government-nominated members was taken at the insistence of a senior BJP leader despite opposition from officers in the cooperation and law and judiciary department.

The opposition Maharashtra Vikas Aghadi has denounced this as a brazen attempt by the Mahayuti to unlawfully snatch power. Satej Patil said he would move the Bombay high court, and cited a Gujarat high court decision in which the Gujarat government's decision to elect government-nominated members in 2020 was termed "illegal" by the court. A meeting to elect the chairperson of the Gokul Board is scheduled for November 10, and Patil is attempting to secure a stay on the ordinance before that date.

The Congress MLC has also called for a massive protest march in Kolhapur on Monday against the state cabinet's decision. "We will take the battle to the Supreme Court if need be," he said. "We will fight this battle on the streets too, as it is an insult to the self-respect of 5,50,000 milk farmers. You failed to win the trust of the people of Kolhapur and now you are insulting their mandate. The people of Kolhapur will never forget this."

The Mahayuti's backdoor attempt to take control of Gokul has triggered strong reactions against it. Even former Chief Justice of India B R Gavai, in his legal opinion to the government on November 3, argued that the amendment would effectively undermine the mandate of the elected majority. Gavai maintained that changing the rules after the election in Gokul, particularly with the apparent objective of preventing the elected majority from securing the chairperson's post, was an arbitrary exercise of legislative power.

Meanwhile, BJP ministers Chandrashekhar Bawankule and Hasan Mushrif have been trying to give explanations for their party's move. While Bawankule said the decision to amend the Act was taken at the instance of local leaders, Mushrif maintained that it was necessary to resolve the 'deadlock' after the Gokul election, and that if the quorum was not met at two consecutive meetings, the state government would have to appoint an administrator to run the union. He also declared that there would be a re-election if the court struck down the amendment.

The so-called deadlock stems from the fact that after the Mahayuti-backed panel's defeat, its 12 directors abstained from the October 29 meeting convened to elect the chairperson. With the mandatory quorum of 14 directors not being met, the meeting was postponed. However, the court has directed that notices be issued to all 25 directors to be present for a meeting scheduled on November 10.

Speaking to reporters in Kolhapur on Friday, Mushrif claimed that the Mahayuti had never prevented Patil from taking a decision on the appointment of a new chairperson to Gokul's board of directors. "Patil should come up with a formula on how to end the stalemate so that the chairperson is elected and Gokul functions smoothly," he said.

When contacted by HT, Patil declined to comment on Mushrif's proposal. However, sources close to the Congress leader said he was "not at all interested" in the suggestion. "It is a political ploy by Mushrif to create confusion among members of the Patil-led panel who have won the elections," said sources. "Patil has already approached the Kolhapur bench of the Bombay high court, which has directed that a fresh meeting of all 25 elected directors be convened on November 10 to elect the new chairman. The court will also hear the matter on November 11."