The Supreme Court asked Uttar Pradesh (UP) government to propose suitable amendments to the laws governing cooperative societies and other such legal entities to stop conferring ex officio positions on the spouses or family members of the State bureaucrats. The Court directed the government to prepare and place an appropriate draft proposal before it by February 10, 2025.
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NEW DELHI: The Supreme Court of India has directed the Uttar Pradesh (UP) government to propose amendments to laws governing cooperative societies and other similar legal entities. The move aims to prevent the practice of granting ex officio positions to the spouses or family members of state bureaucrats.
A Bench comprising Justice Surya Kant and Justice Ujjal Bhuyan provided the UP government with six weeks to draft and propose these amendments.
These changes are expected to impact the State Cooperative Societies Act, State Societies Registration Act, and other related statutes under which cooperative societies, trusts, or similar legal entities are registered.
The Court’s Observations and Recommendations
In its order dated December 2, the Bench emphasized the need for reforms to ensure that the governance structures of societies reflect democratic principles rather than outdated colonial practices.
The Court stated:
“The amended provisions will have to ensure that the byelaws/Rules or regulations of Society will shed the colonial mindset of conferring ex officio positions to the spouse or family members of the State bureaucrats. It is, of course, for the Legislature to bring the suitable amendment and introduce such structure of the Governing Body of a Society or Trust etc., which leans towards democratic values where most of the members are duly elected.”
Furthermore, the Court suggested that state-funded legal entities should adhere to model byelaws or regulations to reinforce accountability and transparency. It remarked:
“In the event of non-compliance or defiance of such model bye-laws/rules/regulations, the Society can be made to lose its legal character as well as Government assistance.”
Deadline for Action
The Bench directed the UP government to submit a draft proposal outlining these amendments by February 10, 2025.
This timeline underscores the urgency of addressing governance issues within cooperative societies and similar entities.
Legal Representation
The case witnessed notable representation from several senior advocates and lawyers.
- Senior Advocate Tapesh Kumar Singh, along with advocates Mohd. Waquas, Amarjeet Gupta, and Farha Naaz, represented the Samiti.
- Additional Solicitor General KM Nataraj and advocate Harish Pandey appeared for the UP government.
- Senior Advocate Vishwajit Singh, supported by advocates Veera Kaul Singh, Suryansh Singh, and Ridhima Singh, represented other respondents involved in the matter.
This directive marks a significant step toward fostering democratic values and reducing nepotism in the management of cooperative societies and other similar entities in Uttar Pradesh.
The proposed amendments are expected to reshape governance structures to better align with modern democratic principles, promoting transparency and fairness.
CASE TITLE:
CM Zila Mahila Samiti v. State of Uttar Pradesh and Others]
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