Farmers’ body terms National Co-operative Development Corporation Act ‘anti-federal’
The new law has been framed to suit the ‘corporate model of urban-centric development’, the Samyukt Kisan Morcha says
The Samyukt Kisan Morcha (SKM), an umbrella organization of farmer groups, has labeled the National Cooperative Development Corporation (NCDC) Act as "anti-federal." The SKM argues that the new legislation infringes upon the federal rights of the States, claiming that it diverts resources away from key priority sectors like agriculture and rural infrastructure.
According to the SKM, the NCDC Act contravenes the Seventh Schedule of the Constitution, which designates "cooperation" as a State subject. The group asserts that the NCDC Act is a "naked intrusion" by the Union government into the powers of the States, violating the principles of autonomy and independence enshrined in International Cooperative Alliance guidelines.
By allowing direct intervention in cooperative societies and taking their shares, the SKM contends that the NCDC Act undermines the control of State governments over these cooperatives and centralizes power in the hands of the Union government, leading to political dominance over the States. The SKM further alleges that the amendment nullifies a 2021 Supreme Court ruling, which stated that the Union government has limited powers to interfere in cooperative societies governed by State governments.
The SKM emphasizes that cooperatives are vital for rural development in India and that the NCDC Act's expansion beyond agriculture to non-agricultural sectors threatens to divert resources meant for agriculture and rural industrial and infrastructure expansion towards an urban-centric corporate development model.
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