SC stays Orissa HC order on co-operative bodies

In a significant development, the Supreme Court on Friday stayed the verdict of Orissa High Court that had quashed the state government nominated councils for running co-operative banks in the state.

While granting this relief to the state government, the apex court has served notices to the elected council of the co-operative bodies to present counter and appear before the court for final disposal of the case.

The state government had challenged the High Court order in the apex court on appointment of government nominees in the cooperative bodies.

The Supreme Court's direction has come as a solace to the state government as the nominated panels can now manage the various cooperative bodies in place of the elected bodies.

It may be noted that, in December last year, the Orissa High Court had quashed the government nominated councils and ordered for conduct of election within six months.

On September 24, 2011, the state government had dismissed all the elected councils of cooperative bodies by enforcing the Orissa Cooperative Societies (Amendment) Act, 2011, and had nominated panels to manage them.

Terming the move as illegal and arbitrary, elected members of 24 cooperative bodies had filed petitions in the High Court. The petitioners included elected members of various urban cooperative banks, central cooperative banks and marketing co-op societies.

The banks include Orissa State Cooperative Bank, Puri Urban Cooperative bank, Nuapada RCMS, Alaka Central Cooperative Store and six central cooperative banks.

The central cooperative banks include Cuttack Central Cooperative Bank, Aska Central Cooperative Bank, Nayagarh Central Cooperative Bank, Bhadrak-Balasore Central Cooperative Bank, Banki Central Cooperative Bank and Bhawanipatna Central Cooperative Bank.