Statement of Objects and Reasons:
The Constitution Amendment Bill 111 of 2009 envisaged that ‘the State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies, based on co-operative principles.’ Amendment proposed to Article 19(1) e that co-operatives are associations and any restriction on them have to be within the framework of Article 19(4) and also to have a definition of co-operatives in the Constitution that will indicate that they are promoted, owned, controlled and managed by their member-users.
The State of Andhra Pradesh enacted Andhra Pradesh State Co-operative Act and Rules, 1964, which envisaged state-partnered and state-governed co-operative societies to function with rule making power resting with the Registrar of Co-operative Societies and AP Mutually Aided Co-operative Societies Act, 1995 based on liberal principles that envisaged Co-operative Societies as member-led, member-centered and member-controlled democratic organizations based on internationally accepted co-operative principles with the Registrar of Co-operative Societies role restricted mostly to regulation. Following the accepted recommendations of Vaidyanathan Committee set up by Government of India and as agreed to in the Memorandum of Agreement that the State Government entered into with NABARD, AP State Co-operative Act was amended to provide for restricted role of the State Government in the co-operative credit societies that include APCOB, DCCBs and PACSs and grant of autonomy to them to function as economic entities.
The Co-operative Societies extend various services that include finance to its members and member organizations. The Cooperative Societies are expected to function on certain cooperative principles and cooperative identity based on certain values of the Societies as a whole, within the framework of the Cooperative Societies formed under the above-mentioned Acts and Rules.
Recommendations of the High Powered Committee of Government of India with S.G. Patil as chairman in 2009 have been taken into consideration and suitably adopted in the proposed Draft of the Unified Andhra Pradesh Co-operative Societies Act 2010.
A Committee appointed by the Government vide G.O.Ms No.251 dated 09-09-2010 prepared the draft that is placed on this website for eliciting the views of all the stake holders. Feedback may be furnished in the format enclosed to the Act
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