Rajasthan: New Cooperative Act for Transparency

Jaipur, Oct 10 (PTI) The Rajasthan government plans to introduce a new Cooperative Act to replace the existing Rajasthan Cooperative Act, 2001, to ensure greater transparency, faster decision-making, and curbing irregularities in cooperative societies.

According to an official statement, the proposed Act, described as a "new cooperative code", aims to simplify processes, strengthen democratic management, and promote business growth and accountability within cooperatives.

A five-member committee was earlier constituted to draft the new law after studying cooperative frameworks in Maharashtra, Gujarat, Madhya Pradesh, and Kerala, officials said.

The draft incorporates provisions to make management more member-oriented and to eliminate monopoly in society operations.

The new code will empower societies to market products within and outside their operational areas, form partnerships on mutually agreed terms, and expand cooperative activities.


The government has also proposed to remove the cap on the shareholding limits of the Centre or state government to encourage the formation of new societies.

The draft law mandates the timely holding of general assemblies, allowing digital notifications via WhatsApp or email. Failure to conduct such meetings may invite a penalty of Rs 5,000. Any board member missing three consecutive meetings without permission may face disqualification.

To improve financial oversight, the Act proposes that audit reports be uploaded to a government portal within 15 days of completion, ensuring public access to financial data. In cases of embezzlement or irregularities, prompt action will be taken for recovery based on audit or inquiry findings.

The legislation also envisages a regulatory board for credit societies to safeguard depositors' interests, and empowers the government to frame rules for housing societies to protect members from fraud. Misuse of the word "cooperative" could attract a fine of up to Rs 50,000.

As part of the ongoing 'Sahkar Membership Campaign', the government has already informed over 3.75 lakh people about key features of the proposed Act, the official statement said.