HC seeks Guj govt's reply on plea challenging Cooperative Act

The Gujarat High Court today sought the state government's reply on a petition that challenged provisions of Gujarat Cooperative Societies (Amendements) Act, 2015, under which the state has powers to appoint custodians in cooperative bodies.
Justice A G Uraizee of the high court today issued a notice to Gujarat government and the Advocate General over the petition and posted further hearing on June 22.
The plea, filed by a cooperative society Bhavnagar Sales and Purchase Union Ltd, has alleged the state government's move to amend the provisions of Cooperative Societies Act is "undemocratic and unconstitutional" as it gives ample power to the state government to appoint custodians in such societies.

The petitioner sought the high court's direction to pass an order through which the state's authority to amend any law regarding cooperative societies cannot be considered legal.
The petition prays to the court "to declare that the state legislature has no power, competence or authority to make any law which is inconsistent with and in derogation of the fundamental rights enshrined in the Constitution of India."
According to the provisions of Gujarat Co-operative Societies (Amendment) Act-2015 passed in the recent budget session and later cleared by state Governor O P Kohli, the state government has become empowered to appoint custodian in cooperative societies to initiate election process.

The state government had last month appointed new custodians in two co-operative institutions including Mehsana District Central Co-operative Bank and Dudhsagar Dairy in Mehsana.
There are 100 cooperative bodies in the state where the state government plans to appoint the custodians in all those societies by holding elections as per the new Act.