Amendment in law for large cooperative societies in Maharashtra; Government to make appointments

The Maharashtra State Cabinet, in a meeting chaired by Chief Minister Devendra Fadnavis, has approved a significant amendment to the Maharashtra Co-operative Societies Act 1960. Under this decision, the State Government will now be able to appoint five members to the Board of Directors of such cooperative institutions that have an annual turnover of more than ₹500 crore and receive assistance from the government in the form of land, loans, guarantees, or other funds. However, District Central Co-operative Banks have been granted complete exemption from this new amendment. The State Government will issue an ordinance for this change, which will amend Section 73AA(2) of the Act.

Out of the five members appointed by the government, one member will be a government official of the rank of Assistant Registrar or above, who will not have the right to vote. The remaining four members will be industry experts, who will have the right to vote in Board meetings but will not be eligible to contest elections for official posts. Currently, the provision in large cooperative societies is to co-opt only two directors and accept two government nominees. According to government officials, the main objective of this change is to prevent deadlocks occurring in Board meetings, ensure the fulfillment of quorum, and avoid the appointment of administrators instead of elected Boards.

This legal change has a direct impact on the Kolhapur District Co-operative Milk Producers Union, also known as 'Gokul' Dairy. Gokul Dairy recorded a massive turnover of ₹3,966.28 crore in the year 2024-25. This institution handles daily milk collection from more than 8,000 rural societies in Kolhapur, with 4.41 lakh producers involved, making it highly influential in regional politics. In the recently held elections, the panel of Congress leader Satej Patil won 13 out of 25 seats, while the ruling Mahayuti alliance secured 12 seats. A quorum of 14 directors is required for a Board meeting, which could not be completed on 29 October during the election of the President due to the absence of Mahayuti members. Now, with the appointment of four new voting members by the government, the ruling party could achieve a 16-13 majority before the re-election to be held on 10 November as per the Bombay High Court order.

Opposing this decision, Congress leader Satej Patil has termed it anti-democratic. He argued that such appointments made by the government after elections ignore the actual mandate of the voters. Congress leader Rahul Gandhi also attacked the BJP, stating that after facing defeat from milk producers, the BJP has changed the rules. He alleged that the BJP has stolen the majority by turning 12 members into 16. On the other hand, government officials defended the move, stating that it will improve administrative control, increase professional expertise, and protect public funds in institutions with high turnovers.

Cooperative societies are an important part of the Indian economy, aimed at protecting the collective interests of members and promoting economic development. The cooperative sector in Maharashtra has a long history and plays a fundamental role in the agriculture and dairy industries. These institutions have previously been in the news regarding issues of political influence and administrative control.