The Union Cabinet has already approved the draft Bill, according to Ghanshyam Amin, president of the National Cooperative Union of India, and a member of the high-powered committee that prepared it.

Amin, who is president of the Gujarat State Cooperative Union, told reporters on Tuesday that the draft Bill – coming by way of the 110th Constitutional Amendment — will add Art 43 B in the Constitution of India’s Part IV to stimulate the cooperative sector to eliminate state interference.

He said major elements to be introduced in the new law include setting up of ‘election commissions’ for the cooperative sector, fixed five-year tenure for cooperative bodies, maximum six months tenure for administrators after which elections must be held, and conducting general body meetings every six months. Other elements include limiting the size of board of directors to 21, right to check society records and to ensure that no member takes office of power.

He said the four other members of the committee were the chairman of NABARD, National Sugar Federation, NDDB, and the All India Urban Banks’ Federation. The new legislation will bring parity among cooperative bodies across India and free it from government shackles, he added.