GK Question

Answer: True

Article 43B cooperative societies and federal balance: (a) 97th Amendment (2011): Added Part IXB (Articles 243ZH-243ZT) to Constitution for cooperative societies, including Article 43B directive to promote voluntary formation, autonomous functioning, democratic control, professional management, (b) Supreme Court judgment (2021): (i) Struck down provisions: Parts of 97th Amendment related to State Legislature's power over cooperatives struck down as violating federal structure (cooperatives are State List subject), (ii) Upheld Article 43B: Directive Principle remains valid; State shall endeavor to promote cooperative principles, (iii) Federal balance: Judgment preserves State autonomy over cooperatives while retaining Union's role in promoting cooperative movement, (c) Cooperative principles operationalization: (i) Voluntary formation: Cooperatives formed by free association of members, not state compulsion, (ii) Autonomous functioning: Cooperatives manage own affairs, free from excessive government control, (iii) Democratic control: One member, one vote; elected management accountable to members, (iv) Professional management: Balance democratic governance with professional expertise for efficiency, (d) Applications: (i) Agricultural cooperatives: AMUL (dairy), IFFCO (fertilizers) demonstrate successful cooperative models with democratic governance, professional management, (ii) Credit cooperatives: Primary Agricultural Credit Societies (PACS) provide rural credit, financial inclusion, require strengthening for autonomy, professionalism, (iii) Post-judgment: States revising cooperative laws to align with constitutional framework; Union promoting cooperative principles through policy support, capacity building, (e) Challenges: (i) Political interference: State governments may undermine cooperative autonomy through appointments, regulations; require legal safeguards, awareness, (ii) Capacity building: Cooperatives need training, technology, governance reforms for professional management, competitiveness, (iii) Federal coordination: Union-State collaboration essential for cooperative development; requires clear roles, resource sharing, mutual respect, (f) Illustrates adaptive federalism: Article 43B operationalized through cooperative principles; balance between Union promotion, State autonomy, democratic governance essential for realizing constitutional vision of inclusive, participatory economy.