Karnataka Souharda Cooperative Bill Defeated in Legislative Council

Bengaluru, Aug 21 (PTI): In a setback for the ruling Congress, the Karnataka Souharda Cooperative (Amendment) Bill, 2025, has been defeated in the Legislative Council, following a vote on Wednesday. Members of both the BJP and JD(S) cast their votes against the bill, concluding with 23 votes in favor versus 26 against.

The ruling party faced an awkward moment as the absence of several Congress Members of the Legislative Council (MLCs) led to the bill’s downfall.

The Karnataka Assembly had approved the bill earlier on August 19, but it encountered staunch opposition when presented in the Legislative Council, where it ultimately failed to pass.

Prior to the voting, a debate took place under the leadership of Council Chairman Basavaraj Horatti. During the discussion, opposition members raised objections against several provisions of the bill.

Karnataka's Law and Parliamentary Affairs Minister, H K Patil, addressed these objections, asserting that all concerns regarding the bill had been addressed and clarified.

Patil emphasized that the bill's rejection would impact the operation of cooperative societies, urging members to evaluate the provisions based on their merits rather than adopting a political stance.

Nevertheless, opposition members expressed concerns about the bill's stipulations, particularly regarding the requirement for cooperative societies to maintain 20 percent of deposits in liquid form, and the classification of these as statutory liquid assets. They also opposed the need for prior approval from the registrar before making investments in scheduled banks, and amendments related to Section 18 of the existing Act concerning investments.

Further concerns were raised about the practicalities involved in filing annual declarations and the new mandate for audits to occur every three years instead of five.

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