Karnataka Co-operative Societies (Amendment) Act, 2023


The government of Karnataka issued a notification on 18 July, 2023 introducing a Bill to further amend the Karnataka Co-operative Societies Act, 1959. The proposed amendment seeks to introduce a new section, which is aimed at constituting a common cadre for employees of specific classes of co-operative societies.

The proposed amendment authorizes the Registrar to create a common cadre of employees for certain classes of co-operative societies, if deemed necessary in the interest of the co-operative movement. This means that one or more federal societies, to which the concerned class of co-operative societies is affiliated, will be authorized to handle various aspects including appointment, transfer, and disciplinary actions. Where such federal society is so authorized by the Registrar, the affiliated co-operative societies shall not have powers to deal with such categories of employees except to the extent the regulations may permit.

The amendment also addresses the financial aspects related to the establishment of a common cadre. Affiliated co-operative societies will be required to make contributions towards the expenses incurred by the federal society for managing the common cadre. These contributions will be assessed annually and used to cover the costs associated with the cadre’s functioning. If any co-operative society fails to pay the said sum to such authority as may be specified by the Registrar and within the time fixed by him, the registrar may on the application of the authority, and after such enquiry as he may consider necessary, make an order requiring the co-operative society to pay the amount, and every such order shall be enforceable against the co-operative society.

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