H K Patil
Credit: DH Photo
Bengaluru: Alliance partners BJP and JD(S) were successful in getting the Karnataka Souharda Co-Operative (Amendment) Bill, 2025 defeated in the Legislative Council on Wednesday. Before Council Chairman Basavaraj Horatti called for a vote on the bill, the proposed amendments proposed to the existing law were extensively debated, with Karnataka Law and Parliamentary Affairs Minister H K Patil offering clarification on several points of contention raised by members of the two opposition
parties.
Ultimately, the government was able to secure only 23 votes in favour of the bill, while 26 members voted against it.
Patil did not conceal his displeasure over the outcome of the vote. “This will not bring any honour to the house. This decision will go down as a black mark in the history of the Council. Opposition members, instead of indulging in politics, should have voted in accordance with their conscience,” said the minister.
In fact, Patil took exception to the bill having been put to vote. “Every query that was raised about the bill was answered,” said Patil. Although Deputy Chief Minister D K Shivakumar and other Cabinet ministers were present in the house, absence of MLCs of the ruling party led to the bill’s defeat on the floor of the House on Wednesday, much to the government’s embarrassment.
The opposition did, however, concede that they had no issue with the intent of the bill, while expressing objections over some of its provisions.
Opposition’s points of contention
The proposal that all co-operative societies reserve 20% of their deposits in liquid form as proposed under Clauses 2(Z) and 17B.
Designation of co-operative societies’ assets as ‘statutory liquid asset’ would make them government property, which is not appropriate.
The stipulation that each co-operative society invest in scheduled banks only after obtaining prior approval from the registrar.
The existing Section 18 of the bill is unexceptionable, and any amendment to the section must allow investment in government securities and co-operative banks.
Practical difficulties of annual declaration
Clause 33 (1A) mandates audit of co-operative societies once every three years, while it should ideally be made compulsory only once every five years.