Maha govt promulgates ordinance to amend Co-Operative Act, paves the way to take control of Gokul Dairy

Digital Desk |

Mumbai, Nov 6 (IANS) In a significant move aimed at tightening oversight and enhancing professional governance in the state’s cooperative sector, the Maharashtra government on Friday promulgated an ordinance amending Section 73AAA of the Maharashtra Co-operative Societies Act, 1960.

The Maharashtra Co-operative Societies (Amendment) Ordinance, 2026 (Ordinance No. XVI of 2026), promulgated by Governor Jishnu Dev Verma, empowers the state government to nominate five members to the managing committees of state-level federal cooperative societies that record an annual turnover exceeding Rs 500 crore and receive state assistance.

This has paved the way for the MahaYuti government to take the control of the Kolhapur District Cooperative Milk Producers Union, widely known as ‘Gokul’ Dairy.

The amendment targets federal cooperative societies (excluding District Central Co-operative Banks) having an annual turnover of more than Rs 500 crore that receive government support in the form of share capital, loans, guarantees, subsidies, government land, or other cash and non-cash assistance.

A government officer holding a rank not lower than an Assistant Registrar of Co-operative Societies.

Four individuals possessing relevant experience and qualifications specified by the state government, as notified in the Official Gazette.

Notwithstanding existing restrictions under Section 27(1) of the Act or society by-laws, the four non-official nominated expert members will hold full voting rights in managing committee meetings.

The nominated government officer will not have voting rights. None of the five nominated members will be eligible to contest or be elected as office-bearers (such as Chairman or Vice-Chairman) of the committee.

According to the official Statement of Objects and Reasons accompanying the Gazette notification issued under the signature of Principal Secretary Pravin Darade, high-turnover federal cooperative institutions hold a vital position in the state’s economic, financial, and cooperative landscape. Because these institutions receive substantial state assistance, the state government deemed it essential that experienced, qualified domain experts participate directly in decision-making processes—with voting rights—to ensure smooth, efficient, and transparent operations.

Since both Houses of the Maharashtra State Legislature are currently not in session, the Governor exercised powers under Clause (1) of Article 213 of the Constitution of India to promulgate the ordinance with immediate effect.

The state Cabinet on November 4 had approved the proposal to amend the Maharashtra Co-operative Societies Act to allow government-nominated non-official directors with voting privileges.

The decision sparked fierce criticism from Congress leader Satej Patil, whose opposition alliance had secured a majority of 13 seats against MahaYuti’s 12 seats in the 25-member board election.

The alliance led by Patil was short by one vote to hit the 14-member quorum required to elect the dairy’s chairman.

With the induction of four voting members appointed by the state government, MahaYuti’s tally will rise to 16, comfortably surpassing the required majority threshold.

Leaders from Congress, Shiv Sena-UBT, Maharashtra Navnirman Sena, and NCP-SP condemned the state government’s intervention.

Leader of Opposition in Lok Sabha, Rahul Gandhi, also voiced concerns over the decision on social media.

Bacchu Kadu, leader of Prahar Janshakti Party and ally of Electorate factions, publicly criticised the state government’s stance as inappropriate.

Despite the mounting political pressure, the state government remained firm on promulgating the ordinance.

Chief Minister Devendra Fadnavis and Medical Education Minister Hasan Mushrif justified the state government decision, saying it was made to avoid fresh election.

Congress leader Satej Patil had submitted a legal opinion from former Chief Justice of India B R Gavai, saying that retroactive amendments to alter election outcomes would not hold up in court.

With the state government proceeding despite the warning, Patil has announced a massive multi-party ‘Kolhapur Sangharsh Morcha’ on November 9 to protest against the nomination move.

He is also expected to challenge the constitutionality of the ordinance in the High Court before the scheduled election of the Gokul Dairy Chairman on November 10.

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