The eligibility of nominated members to contest elections for office bearers in a multi-state cooperative society (MSCS) has become a significant query in recent times. This question emerged following amendments to the MSCS Act, 2002 last year, which established the Cooperative Election Authority and introduced cooperative election rules.
While many societies navigated the new rules seamlessly, the Indian Farm Forestry Development Cooperative Limited (IFFDC) seems to have encountered certain challenges as the election of its Chairperson in the recently held election was rejected by the Cooperative Election Authority.
Issue
IFFCO nominated three members on the board of IFFDC who did not participate in the election process of IFFDC. One of the nominated members contested and won the election of the Chairperson of the society. However, the election of this candidate was rejected by Cooperative Election Authority on the ground that the Chairperson and the Vice Chairperson can be elected from amongst the elected members of the Board only, citing section 49 (2) (aa) of the Amended Act, 2023. SahkarNet spoke to experts on the issue, whose views are shared below.
Facts
As per CEA (Cooperative Election Authority), the District Magistrate (Gurugram) & Returning Officer of IFFDC issued election notification on 03rd June 2024 indicating the constituencies for election. The notification does not indicate any separate constituency of IFFCO in the election of IFFDC.
The Returning Officer received nominations from the mentioned constituencies and published the list of nominations on 11th June, 2024. After withdrawal period, the final list of contesting candidates constituency-wise was published on 13th June, 2024. This list of contesting candidates also does not include any name from IFFCO.
The Returning Officer conducted the Board election on 20th June 2024. In all 145 voters cast their vote and the recommendations were submitted by the Returning Officer in the prescribed form 19M, seekig approval of the CEA. Out of 8 constituencies in the IFFDC election, polling was held in 7 constituencies and in one constituency the candidate was elected unopposed. The recommendation of the Returning Officer regarding election of directors was accepted by the CEA which was duly communicated to the Returning Officer on 21st June, 2024.
Managing Director, IFFDC had received three names from IFFCO and one name from NCDC as nominations for the Board of IFFDC. Managing Director, IFFDC requested the Returning Officer to permit these nominated members to attend the board meeting on 21st June, 2024.
Returning Officer submitted for approval of election of office bearer namely Chairperson and Vice Chairperson, in form 19 N to CEA after the election on 21st June, 2024.
Decision by CEA
Conduct of the election of the Cooperative Society is a process and the entire process is led down in the Multi State Cooperative Societies Act, 2002 as amended by the Multi-State Cooperative Societies(Amendment) Act, 2023 dated 03rd August 2023 w.e.f. 03rd August 2023 and procedures have been given in the Multi-State Cooperative Societies Rules, 2002 as amended vide GSR 591(E) dated 04th Augst, 2023.
As per section 49 (2) (aa) of the Amended Act, 2023, the Board of the MSCS has to elect Chairperson and Vice Chairperson from amongst the elected members of the Board in accordance with the directions of the Authority. Since the proposed Chairperson was not one among the elected eight directors, the proposal to declare him as Chairperson was rejected. While the Vice Chairperson was one among the elected eight directors , therefore the proposal of the returning officer for the election of the Vice Chairperson was accepted.
According to CEA, on further scruitny it was also informed that the voter list does not contan the name of any delegate from IFFCO. As IFFCO is a member of IFFDC they should have submitted the name of delegate as per the rule 19 H to the Returning Officer. The delegate could have participated in the election process by submitted the nomnation paper and subsequently the election. The procedure has not been followed by IFFDC.
Views of the Experts
SahkarNet spoke to several experts on the matter whose views were more or less on the same lines. The facts emerging out of their views are as follows:
Several multi state cooperative societies have made it mandatory in their bye-laws for delegates of their member organization to first become a member of the general body and then participate in the election process. This process is mandatory even if there is only one member organizaton from that particular constituency.
To elaborate, there are certain national cooperative federations whose state federations have a seat reserved on the board of directors of the national federations. However, as a routine, these delegates first have to become the member of the general body, which makes them eligible as voters who then participate in the election process. As there is only one delegate from that particular constituency, the delegate gets elected unopposed.
On detailed analysis, SahkarNet found that the same process was also followed in the election of a particular national cooperative federation recently where-in its state federation members (only one from that category/constituency) regularly nominate their managing director. These managing directors although nominated ex-officio, go through the process of first becoming the member of the general body as delegate of the member federations, become eligible voters and then participate in the election of the board of directors, which is unopposed in their cases.
This way these societies conform to the requirements of CEA of electing office bearers from elected members of the board of directors.
