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State of Kerala - Act

THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2021

KERALA
India

THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2021

Act 34 of 2021

Published in Kerala Gazette on 14 November 2021
Commenced on 14 November 2021
[This is the version of this document from 14 November 2021.]

ACT 34 OF 2021THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2021An Act further to amend the Kerala Co-operative Societies Act, 1969.Preamble.—WHEREAS, it is expedient further to amend the Kerala Co-operative SocietiesAct, 1969 (21 of 1969) for the purposes hereinafter appearing;BE it enacted in the Seventy-second Year of the Republic of India as follows:—

1. Short title and commencement.—(1) This Act may be called the Kerala

Co- operative Societies ( Amendment) Act, 2021.

(2)Clause (ii) of section 2 and clause (i) of section 9 shall be deemed to have comeinto force on the 15th day of January, 2020, clause (ii) of section 9 shall be deemed to havecome into force on the 11thday of April, 2020 and the remaining provisions shall be deemed tohave come into force on the 12thday of February, 2021.

2. Amendment of section 2.—In section 2 of the Kerala Co-operative Societies Act, 1969

(21 of 1969) (hereinafter referred to as the principal Act),—

(i)after clause (ab), the following clause shall be inserted, namely:—

“(ac) “Anand Pattern Milk Co-operative Society” means a Primary DairyCo-operative Society, otherwise known as 'Ksheerolpadaka Sahakarana Sangam', registeredon or after the 1st day of January 1980, and functioning as per the modelbye-laws of Anand Pattern, with the principal objectives of procurement and marketing of milkand milk products and pouring marketable surplus of milk to the RegionalCo-operative Milk Producers' Union and for providing inputs to the dairy farmers, within thearea of operation of the society ;”;

(ii)for clause (ia), the following clause shall be substituted, namely:—

“(ia) “District Co-operative Bank” means a central society having jurisdictionover one revenue district and having Primary Agricultural Credit Societies and Urban Co-operative Banks as its members and the principal object of which is to raise funds to be lentto its members, including nominal or associate members, which existed under this Actimmediately before the passing of the orders by the Registrar under sub-section (1) orsub-section (1)(a) of section 74H and has ceased to exist by virtue of such orders:Provided that if the general body of a District Co-operative Bank has not passed theresolution under section 14A, it shall continue as such for a period of two years from the dateof commencement of the Kerala Co-operative Societies (Amendment) Act, 2021 or till theRegistrar completes the process under clauses (a), (b) and (c) of sub-section (1) of section 74H,whichever is earlier;”;

(iii)after clause (p), the following clauses shall be inserted, namely:—

“(pa) “Recruitment Committees” means the committees constituted undersection 80BB of this Act;

(pb)“Regional Co-operative Milk Producers' Union” is a central society having

Anand Pattern Primary Dairy Co-operative Societies as their members with the principalobjective of undertaking procurement, processing and marketing of milk and milk products andto provide technical, financial and production input assistance to their member societies anddairy farmers within the area of operation comprising two or more revenue districts;”.

3. Amendment of section 8A.—In section 8A of the principal Act, after sub-section (3) the

following sub-section shall be added, namely:—“(4) Notwithstanding anything contained in this Act or the rules made thereunder orthe bye-laws of a Regional Co-operative Milk Producers' Union, the Anand Pattern Milk Co-operative Societies having a regular elected Managing Committee and doing the business ofmilk procurement and sales within the area of operation of the Regional Co-operative MilkProducers' Union shall be admitted as members of the Regional Co-operative Milk Producers'Union.”.

4. Amendment of section 16.—In section 16 of the principal Act, to sub-section (1), after

the fourth proviso, the following proviso shall be added, namely:—“Provided also that in the case of Anand Pattern Milk Co-operative Societies, nodairy farmers other than those who own one or more milch cows or buffaloes and residingwithin the area of operation of the society or running dairy farms in their own land or in leasedland within the area of operation of the society and pouring milk not less than ninety dayswithin a period of one hundred and twenty days in a year to the society, shall be admitted asmembers.”.

5. Insertion of new section 16B.—In the principal Act, after section 16 the following

section shall be inserted, namely:—

16B. Eligibility conditions to continue to be an active member of Anand Pattern Milk

Co-operative Societies.—(1) No member shall be eligible to continue to be an active memberof an Anand Pattern Milk Co-operative Society if he/she–(a)is not pouring milk not less than five hundred litres to the society for onehundred and eighty days during the preceding twelve months; and(b)is not owning at least one milch cow or buffalo, by rearing them in a cattleshed or in a farm set up either in his /her own land or in a leased land, within the area ofoperation of the society.

(2)Only an active member referred to in sub-section (1) shall be eligible to becomea member of the committee of an Anand Pattern Milk Co-operative Society and to continue asa member of such committee.”.

6. Amendment of section 28.—In section 28 of the principal Act, after sub-section (5) the

following sub-sections shall be added, namely:—“(6) Notwithstanding anything contained in this Act or the rules made thereunder orthe bye-laws of a Regional Co-operative Milk Producers' Union or in any other law, judgementor Decree or Orders of any court or Tribunal for the time being in force, no President of anAnand Pattern Milk Co-operative Society which is a member of a Regional Co-operative MilkProducers' Union, shall be eligible to hold office as a member of the committee of the RegionalCo-operative Milk Producers' Union for more than three terms or fifteen years whichever ishigher:Provided that the provisions of this sub-section shall not apply to members of thecommittee of the Regional Co-operative Milk Producers' Union holding office as such on thedate of commencement of the Kerala Co-operative Societies (Amendment) Act, 2021 till thecompletion of their original term of five years:Provided further that the provisions in the above proviso shall not apply to the membersof the committee whose tenure was extended beyond their original term of five years.

(7)Notwithstanding anything contained in this Act or the rules made thereunder orthe bye-laws of a Regional Co-operative Milk Producers' Union or in any other law, judgementor Decree or Orders of any court or Tribunal, for the time being in force, the President of anAnand Pattern Milk Co-operative Society, which is a member of the RegionalCo-operative Milk Producers' Union shall be eligible to contest the elections to the committeeof the Regional Co-operative Milk Producers' Union and hold office as a member of thecommittee of the Regional Co-operative Milk Producers' Union, only if the Anand Pattern MilkCo-operative Society to which he/she belongs, satisfies the following conditions, namely:-

(a)the society is placed in audit classification A or B, as prescribed, during the

last audit conducted; and

(b)supply milk procured and pooled by the member society to the Regional

Co-operative Milk Producers' Union subject to a minimum quantity as fixed by the committeeof the Regional Co-operative Milk Producers' Union:Provided that the provisions of this sub-section shall not apply to those membersocieties for a period of two years which are revived after long duration of inactivity and thosePrimary Dairy Co-operative Societies whose bye-laws were amended to Anand Pattern, eitherfrom the date of restart of the society or from the date of registration of amendment of bye-laws to Anand Pattern model bye-laws.

(8)Notwithstanding anything contained in this Act or the rules made there under orthe bye-laws of a Regional Co-operative Milk Producers' Union or in any other law, judgementor Decree or Orders of any court or Tribunal, for the time being in force, the delegate of themember Anand Pattern Milk Co-operative Society to attend the general body meetings and tocontest the elections to the managing committee of the Regional Co-operative Milk Producers'Union shall be the President of member Anand Pattern Milk Co-operative Societies only.”.

7. Amendment of Section 28AB.—In section 28AB of the principal Act, after

sub-section (2) the following sub-sections shall be added, namely:—“Notwithstanding anything contained in this Act or the rules made there under or thebye-laws of a Regional Co-operative Milk Producers' Union or in any other law, judgement orDecree or Orders of any court or Tribunal, for the time being in force, no President of an AnandPattern Milk Co-operative Society shall be eligible to hold office as President or Chairman ofa Regional Co-operative Milk Producers' Union for more than two consecutive terms, whetherin full or in part.

(4)Notwithstanding anything contained in this Act or the rules made thereunderor the bye-laws of an Anand Pattern Milk Co-operative Society or in any other law, Judgementor Decree or Orders of any court or Tribunal, for the time being in force, either the Presidentor the Vice President ofAnand Pattern Milk Co-operative Societies shall be women members.”.

8. Amendment of Section 64.— In section 64 of the principal Act, after

sub-section (12) the following sub-section shall be added, namely:—“(13) Notwithstanding anything contained in this Act or the rules made thereunderor the bye-laws of a Regional Co-operative Milk Producers' Union and its apex society,AnnualPerformance Audit in Regional Co-operative Milk Producers' Union and its apex society shallbe conducted for every financial year, in the prescribed manner, by engaging person/s fromamong the panel of experienced person/s in dairy industry, recommended by the apex societyand approved by the Functional Registrar of Diary Co-operatives .”.

9. Amendment of section 74H.— In section 74H of the principal Act.—

(i)in sub-section (1) the following clauses shall be added at the end, namely:—

“(a) if the general body of a District Co-operative Bank has not passed theresolution under section 14A, the Registrar may, after consulting Reserve Bank of India, ordermerger of such District Co-operative Bank with Kerala State Co-operative Bank, on publicinterest. No order shall be passed under this clause unless,—

(i)a copy of the proposed order of merger has been sent to the member

society or member societies concerned by registered post and published the same in twovernacular dailies having wide circulation in the district in which the society situates, for theirobjections or suggestions;

(ii)the Registrar shall consider the objections/suggestions, if any, received

from the society or societies concerned or from any member or creditor of such society orsocieties within such period, being not less than fifteen days from the date of posting of theproposed order of merger, as may be specified by the Registrar in this behalf;

(b)the Registrar may after considering the objections/suggestions referred to in

sub-clause (ii) of clause (a), make such modifications, in the proposed order as he may deemfit and the order shall contain such incidental, consequential and supplemental provisions asthe Registrar may deem necessary, to give effect to the same;

(c)a member or creditor who has objected the proposed order under clause (b)

shall have the option of withdrawing his share and/or deposits or close loans, as the case maybe, on application, which shall be made to the society, to which its share, deposit or outstandingloan stands allocated, within a period of thirty days from such order;

(d)on merger all other relevant provisions in this chapter shall apply mutatis

mutandis to the entities merged under clause (a).”;

(ii)after sub-section (1) following sub-section shall be added, namely:—

“(1A) On and from the date of the passing of the order of merger by theRegistrar under sub-section (1)(a), all the assets and liabilities of the District Co-operative Bankas it stood immediately before the order of merger shall, without any further act, instrument ordeed, stand transferred to and vested in the Kerala State Co-operative Bank.''.

10. Insertion of new section 80BB.— After section 80B of the principalAct, the following

section shall be inserted, namely :—“80BB. Recruitment Committees for appointments in Regional Co-operativeMilk Producers’ Union.—(1) Notwithstanding anything contained in this Act or the rulesmade thereunder Government shall, by notification in the Gazette, constitute RecruitmentCommittees which shall be the competent committees for the entire selection and recruitmentprocess of all permanent employees of the Regional Co-operative Milk Producers’ Union.

(2)The Recruitment Committee for undertaking the selection process of allemployees other than the Managing Director shall consist of not more than eight members. TheSecretary to Government in charge of Dairy Development Department shall be the Chairmanof the Committee and the Managing Director of the apex body of the Regional Co-operativeMilk Producers' Union, appointed by the Government, shall be the Convenor of the Committee.The other members shall be as follows, namely:—

(i)Registrar of Dairy (Co-operatives);

(ii)Chairman of the Apex Society;

(iii)Joint Director (General), Dairy Development Department or Joint

Secretary to Government, Dairy Development Department, Government of Kerala;

(iv)An expert from Dairy Industry, nominated by the Government;

(v)Chairman, Regional Co-operative Milk Producers' Union;

(vi)Managing Director, Regional Co-operative Milk Producers' Union.

(3)The Recruitment Committee for undertaking the selection process of the ChiefExecutive or the Managing Director of the Regional Co-operative Milk Producers' Union shallconsist of not more than four members. The Secretary to Government in charge of DairyDevelopment Department shall be the Chairman of the Committee and the Chairman ofRegional Co-operative Milk Producers’ Union shall be the Convenor of the Committee. Theother members shall be the Managing Director of the apex society and an expert from dairyIndustry, nominated by the Government.”.

11. Repeal and saving.—(1) The Kerala Co-operative Societies (Amendment) Ordinance, 2021. (117 of 2021) is hereby repealed.

(2)Notwithstanding such repeal anything done or deemed to have been done or anyaction taken or deemed to have been taken under the principal Act as amended by the saidordinance shall be deemed to have been done or taken under the principal Act as amended bythis Act.____________________________________________________________________________________________________________________________PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSESAT THE GOVERNMENT CENTRAL PRESS, THIRUVANANTHAPURAM, 2021

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