Co-operative Societies & Public Services - Questions and Answers

ANSWER: All of the above

Explanation:

The reasons for the 97^th Constitutional Amendment Act of 2011 are -


• Over the years, the co-operative sector has made significant contribution to various sectors of national economy.


• It has achieved large growth.


• But, it has shown weaknesses in safeguarding the interests of the members and fulfillment of objects for which these institutions were organized.


• There have been incidences where elections have been postponed indefinitely; nominated office bearers have remained in-charge of these institutions for a long time.


• This reduces the accountability of co-operative societies to their members.


• There is inadequate professionalism in management which leads to poor services and low productivity.


• Co-operatives need to run on democratic principles and elections held on time and in a free and fair manner.


• Hence, there was a need to initiate fundamental reforms to revitalize these institutions and also to guarantee their autonomy, democratic functioning and professional management.


• The “co-operative societies” is a subject enumerated in Entry 32 of the state list of the Seventh Schedule of the Constitution.


• The State Legislatures have accordingly enacted legislations on co-operative societies.


• Within the framework of State Acts, growth of co-operatives on large scale was envisaged as part of the efforts for securing social and economic justice.


• But, in spite of considerable expansion of co-operatives, their performance in qualitative terms has not been up to the desired level.


• Considering the need for reforms in the Co-operative Societies Acts of the States, a strong need had been felt for amending the Constitution so as to keep the co-operatives free from unnecessary outside interferences.


• It also ensures their autonomous organizational set up and their democratic functioning.


• The Central Government was committed to ensure that the co-operative societies in India function in a democratic, professional and economically stable manner.


• For this, it was proposed to incorporate a new part in the constitution so as to provide for certain provisions covering the vital aspects of working of co-operative societies.


• It was expected that these provisions will ensure accountability of management to the members and other stakeholders and shall provide as a deterrent for violation of the provisions of the law.

ANSWER: Only 1, 2 and 4

Explanation:

• The 97^th Constitutional Amendment Act of 2011 gave a constitutional status and protection to co-operative societies.

This changed the following sections of the constitution -

a. It made the right to form co-operative societies a fundamental right (Article 19).

b. It added the words "or co-operative societies" after the word "or unions" in Article 19 (l) (c).

c. It included a new Directive Principle of State Policy on promotion of co-operative societies (Article 43-B).

d. It added a new Part IX-B in the Constitution which is entitled ‘The Co-operative Societies’ (Articles 243-ZH to 243-ZT).


• The amendment objective is to encourage economic activities of co-operatives. This will help in progress of rural India.


• Article 43 B states that there should efforts of state to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.

Incorporation of Co-operative Societies -


• The state legislature may make provisions for the incorporation, regulation and winding-up of co-operative societies based on the principles of voluntary formation, democratic member-control, member-economic participation and autonomous functioning.

Number and Term of Members of Board and its Office Bearers -


• The board shall consist of such number of directors as may be provided by the State Legislature.


• But, the maximum number of directors of a co-operative society shall not exceed 21.


• The State Legislature shall provide for the reservation of one seat for the Scheduled Castes or the Scheduled Tribes and two seats for women on the board of every co-operative society having members from such a category of persons.


• The term of office of elected members of the board and its office bearers shall be five years from the date of election.


• The State Legislature shall make provisions for co-option of persons having experience in the field of banking, management, finance or specialization in any other related field, as members of the board.


• But, the number of such co-opted members shall not exceed two (in addition to 21 directors).


• Also, the co-opted members shall not have the right to vote in any election of the co-operative society or be eligible to be elected as office bearers of the board.


• The functional directors of a co-operative society shall also be the members of the board and such members shall be excluded for the purpose of counting the total number of directors (that is, 21).

ANSWER: 6 months

Explanation:

Election of Members of Board -


• The election of a board shall be conducted before the expiry of the term of the board so as to ensure that the newly elected members assume office immediately on the expiry of the term of the office of members of the outgoing board.


• The superintendence, direction and control of the preparation of electoral rolls and the conduct of elections to a co-operative society shall vest in such body, as may be provided by the State Legislature.

Supersession and Suspension of Board and Interim Management -


• No board shall be superseded or kept under suspension for a period exceeding six months.

The board may be superseded or kept under suspension in case -

1. of its persistent default;

2. of negligence in the performance of its duties;

3. of committing any act prejudicial to the interests of the co-operative society or its members;

4. of there being a stalemate in the constitution or functions of the board;

5. of the election body having failed to conduct elections in accordance with the provisions of the State Act.


• However, the board of any such co-operative society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee by the Government.


• In case of super-session of a board, the administrator appointed to manage the affairs of such a co-operative society shall arrange for conduct of elections within the period of six months and handover the management to the elected board.

Audit of Accounts of Co-operative Societies -


• The State Legislature may make provisions for the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year.


• It shall lay down the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing the accounts of the co-operative societies.


• Every co-operative society shall be audited by an auditor or auditing firm, appointed by the general body of the co-operative society.


• But, such an auditor or auditing firm shall be appointed from a panel approved by the State Government or a body authorized by the State Government on this behalf.


• The accounts of every co-operative society shall be audited within six months of the close of the financial year.


• The audit report of the accounts of an apex co-operative society shall be laid before the State Legislature.


• Convening of General Body Meetings - The State Legislature may provide that the annual general body meeting of every co-operative society shall be convened within a period of six months of the close of the financial year.

ANSWER: None of the above

Explanation:

Right of a Member to Get Information -


• The State Legislature may provide for access to every member of a co-operative society to the books, information and accounts of the co-operative society.


• It may also make provisions to ensure the participation of members in the management of the co-operative society.


• Further, it may provide for co-operative education and training for its members.

Returns -


• Every co-operative society shall file returns, within six months of the close of every financial year, to the authority designated by the State Government.

These returns shall include the following matters -

1. Annual report of its activities.

2. Its audited statement of accounts.

3. Plan for surplus disposal as approved by the general body of the co-operative society.

4. List of amendments to the by-laws of the co-operative society.

5. Declaration regarding date of holding of its general body meeting and conduct of elections when due.

6. Any other information required by the Registrar in pursuance of any of the provisions of the State Act.

Offences and Penalties -


• The state legislature may make provisions for the offences relating to the co-operative societies and penalties for such offences.

Such a law shall include the commission or omission of the following acts as offences -

1. A co-operative society willfully makes a false return or furnishes false information.

2. Any person willfully disobeys any summon, requisition or order issued under the State Act.

3. Any employer who, without sufficient cause, fails to pay to a co-operative society the amount deducted from its employee within a period of fourteen days.

4. Any officer who willfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a co-operative society to an authorized person.

5. Any person who adopts corrupt practices before, during or after the election of members of the board or office bearers.

Application to Multi-state Co-operative Societies -


• The provisions of this part shall apply to the multi-state co-operative societies subject to the modification that any reference to the “State Legislature”, “State Act” or “State Government” shall be construed as a reference to “Parliament”, “Central Act” or “Central Government”, respectively.

Application to Union Territories -


• The provisions of this part shall apply to the Union Territories.


• But, the President may direct that the provisions of this part shall not apply to any Union territory or part thereof as he may specify in the notification.

Continuance of Existing Laws -


• Any provision of any law relating to co-operative societies in force in a state immediately before the commencement of the Constitution (97^th Amendment) Act, 2011, which is inconsistent with the provisions of this part, shall continue to be in force until amended or repealed or until the expiration of one year from such commencement, whichever is less.

ANSWER: All of the above

Explanation:

• The personnel of Central Services work under the exclusive jurisdiction of the Central Government.


• They holds pecialized (functional and technical) positions in various departments of the Central Government.


• At present, there are 58 group A Central Services.

Some of them are -

1. Central Engineering Service.

2. Central Health Service.

3. Central Information Service.

4. Central Legal Service.

5. Central Secretariat Service.

6. Indian Audit and Accounts Service.

7. Indian Defence Accounts Service.

8. Indian Economic Service.

9. Indian Foreign Service.

10. Indian Meteorological Service.

11. Indian Postal Service.

12. Indian Revenue Service (Customs, Excise and Income Tax).

13. Indian Statistical Service.

14. Overseas Communication Service.

15. Railway Personnel Service.


• Among all, the Indian Foreign Service (IFS) is the highest central service in terms of prestige, status, pay and emoluments.


• In fact, it (though a Central Service) competes with the All-India Services in position, status and pay scales.


• It comes next to the IAS in ranking and its pay scale is higher than the IPS.

ANSWER: All of the above

Explanation:

• The personnel of State Services work under the exclusive jurisdiction of the State Government.


• They hold different positions (general, functional and technical) in the departments of the State Government.


• However, they occupy lower positions (in the administrative hierarchy of the state) than those held by the members of the All-India Services (IAS, IPS and IFS).


• The number of services in a state differ from state to state.

The services that are common to all the states are -

1. Civil Service.

2. Police Service.

3. Forest Service.

4. Agricultural Service.

5. Medical Service.

6. Veterinary Service.

7. Fisheries Service.

8. Judicial Service.

9. Public Health Service.

10. Educational Service.

11. Co-operative Service.

12. Registration Service.

13. Sales Tax Service.

14. Jail Service.

15. Service of Engineers.


• Each of these services is named after the state. For example, in Kerala, they are known as Kerala Civil Service, Kerala Police Service etc.


• Among all the State Services, the civil service (also known as the administrative service) is the most prestigious.


• The State Services are also classified into gazetted class and non-gazetted class.


• Usually, Class-I (Group-A) and Class-II (Group-B) Services are gazetted classes while Class-III (Group-C)and Class-IV (Group-D) services are non-gazetted classes.


• The names of the members of gazette class are published in the Government Gazette for appointment, transfer, promotion and retirement, while those of the non-gazetted are not published.


• The members of the gazetted class are called ‘officers’ while those of non-gazetted are called ‘employees’.


• The All-India Services Act of 1951 specifies that senior posts not exceeding thirty-three and one third per cent in the IAS, IPS and IFS are required to be filled in by promotion of officers employed in the state services.


• Such promotions are made on the recommendation of selection committee constituted for this purpose in each state.


• Such a committee is presided over by the Chairman or a member of UPSC.

ANSWER: Sardar Vallabhbhai Patel

Explanation:

• Sardar Vallabhbhai Patel was the Chief Protagonist of All-India Services in the Constituent Assembly. Hence, he came to be regarded as the ‘Father of All-India Services’.


• All-India services are those services which are common to both Central and State Governments.


• The members of these services occupy key posts under both the centre and the states and serve them by turns.


• At present, there are three All-India Services - Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFS).


• In 1947, the Indian Civil Service (ICS) was replaced by IAS and the Indian Police (IP) was replaced by IPS and were recognized by the Constitution as All-India Services.


• In 1966, the Indian Forest Service was established as the third All-India service.


• The All-India Services Act of 1951 authorized the Central government to make rules in consultation with the State Governments for the regulation of recruitment and service conditions of the members of All-India Services.


• The members of these services are recruited and trained by the Central Government but are assigned to different states for work. They serve the Central Government on deputation.


• The All-India Services are controlled jointly by the Central and State Governments.


• The ultimate control lies with the Central Government while the immediate control is vested in the State Governments.


• Any disciplinary action (imposition of penalties) against these officers can only be taken by the Central Government.

Article 312 makes the following provisions in respect of All-India Services -

1. The Parliament can create new All-India Services (including an All-India Judicial Service), if the Rajya Sabha passes a resolution declaring that it is necessary or expedient in the national interest to do so.

2. Such a resolution in the Rajya Sabha should be supported by two-thirds of the members present and voting.

3. This power is to protect the interests of states.

4. Parliament can regulate the recruitment and conditions of service of persons appointed to All-India Services for which the Parliament has enacted the All-India Services Act, 1951.

5. The services known at the commencement of the constitution (that is, January 26, 1950) as the Indian Administrative Service and the Indian Police Service are deemed to be services created by Parliament under this provision.

6. The All-India Judicial Service should not include any post inferior to that of a district judge.

7. A law providing for the creation of this service is not to be deemed as an amendment of the Constitution for the purposes of Article 368.

Other Provisions -

1. Article 312 A (inserted by the 28^th Amendment Act of 1972) confers powers on the Parliament to vary or revoke the conditions of service of persons who were appointed to a civil service of the crown in India before 1950.

2. Article 313 deals with transitional provisions and says that until otherwise provided, all the laws in force before 1950 and applicable to any public service would continue.

3. Article 314 which made provision for protection of existing officers of certain services was repealed by the 28^th Amendment Act of 1972.

ANSWER: All of the above

Explanation:

• Articles 308 to 314 in part XIV of the Constitution contain provisions with regard to All-India Services, Central Services and State Services.


• Article 308 says that these provisions do not apply to the state of Jammu and Kashmir.

Recruitment and Service Conditions -


• Article 309 empowers the Parliament and the State Legislatures to regulate the recruitment and the conditions of service of the persons appointed to public services and posts under the centre and the states, respectively.


• Until such laws are made, the President or the Governor can make rules to regulate these matters.


• Recruitment includes appointment, selection, deputation, promotion etc.


• The conditions of service include pay, allowances, holidays, rights etc.


• Under this provision, the Parliament or the state legislature can impose ‘reasonable’ restrictions on the Fundamental Rights of public servants in the interests of integrity, honesty, efficiency, discipline, secrecy etc.

Tenure of Office -


• According to Article 310, members of the defense services, the civil services of the centre and the All-India Services or persons holding military posts or civil posts under the centre, hold office during the pleasure of the President.


• Similarly, members of the civil services of a state or persons holding civil posts under a state, hold office during the pleasure of the Governor of the state.


• However, there is an exception to this rule of dismissal at pleasure.

The President or the Governor may (in order to secure the services of a person having special qualifications) provide for the payment of compensation to him in two cases -

1. if the post is abolished before the expiration of the contractual period; or

2. if he is required to vacate that post for reasons not connected with misconduct on his part.


• However, such a contract can be made only with a new entrant, that is, a person who is not already a member of a defense service, a civil service of the centre, an All-India Service or a civil service of a state.

ANSWER: None of the above

Explanation:

• Civil Servants hold office during the pleasure of the President or the Governor of the state (in case of state officers).


• Article 311 places two restrictions on this.

It provides two safeguards to civil servants against any arbitrary dismissal from their posts -

1. A civil servant cannot be dismissed or removed by an authority subordinate to that by which he was appointed.

2. A civil servant cannot be dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.


• The above two safeguards are available only to the members of the civil services of the centre, the All-India Services, the civil services of a state or to persons holding civil posts under the centre or a state.


• They are not to the members of defense services or persons holding military posts.

However, the second safeguard (holding inquiry) is not available in the following three cases -

a. where a civil servant is dismissed or removed or reduced in rank on the ground of conduct which has led to his conviction on a criminal charge; or

b. where the authority empowered to dismiss or remove a civil servant or to reduce him in rank is satisfied that for some reason (to be recorded in writing), it is not reasonably practicable to hold such inquiry; or

c. where the President or the Governor is satisfied that in the interest of the security of the state, it is not expedient to hold such inquiry.


• Originally, the opportunity of being heard was given to a civil servant at two stages - at the inquiry stage and at the punishment stage.


• But, the 42^nd Amendment Act of 1976 abolished the provision for second opportunity.


• Hence, the present position is that where it is proposed( after inquiry) to impose upon a civil servant the punishment of dismissal, removal or reduction in rank, it may be imposed on the basis of the evidence adduced at the inquiry without giving him any opportunity of making representation on the penalty proposed.

The Supreme Court held that the expression ‘reasonable opportunity of being heard’ envisaged to a civil servant (in the second safeguard mentioned above) includes -

1. an opportunity to deny his guilt and establish his innocence which he can only do if he is told what the charges against him are and the allegations on which such charges are based;

2. an opportunity to defend himself by cross-examining the witnesses produced against him and by examining himself or any other witnesses in support of his defense; and

3. the disciplinary authority must supply a copy of the inquiry officer’s report to the delinquent civil servant for observations and comments before the disciplinary authority considers the report.