Cooperatives Strengthened in Rajasthan under CM Bhajanlal Sharma; New Cooperative Code to Ensure Transparency and Efficiency

Jaipur, Oct 2025: Under the leadership of Chief Minister Bhajanlal Sharma, the Rajasthan government is committed to simplifying cooperative society procedures, curbing irregularities, and promoting business growth within cooperative committees. In this direction, the state government is introducing a New Cooperative Act to make cooperative laws more relevant and beneficial for societies and the public.

The proposed New Cooperative Act will replace the existing Rajasthan Cooperative Act, 2001, making it more suitable for current needs. A five-member committee was constituted to draft the new cooperative code after studying cooperative laws from leading states such as Maharashtra, Gujarat, Madhya Pradesh, and Kerala, and holding consultations with senior officials and experts.

The draft emphasizes simplified processes, control over irregularities, quick resolution mechanisms, professionalization of cooperatives, mutual collaboration, democratization of management, and member-centric governance.

Public Awareness on New Provisions

As part of the ‘Cooperative Membership Campaign’ being held across the state from October 2 to 15, citizens are being informed about the major provisions of the proposed Act. So far, over 3.75 lakh people have been made aware of its key features.

The new law proposes allowing cooperatives to sell products beyond their jurisdiction, enter partnerships on mutually agreed terms for enhancing competitiveness, and remove the limit on share capital holdings by the state or central government to promote the formation of new cooperatives. The Registrar will also have the power to form ad-hoc committees for three months in the event of formation delays, followed by elections as per bylaws.

Ensuring Timely General Meetings

The new Act ensures the timely conduct of general assemblies. Members can be informed via WhatsApp and email, and those responsible for not holding meetings may face a penalty of ₹5,000. Board members missing three consecutive meetings without permission may face disqualification. Societies not receiving government assistance will have greater financial and administrative autonomy, subject to general and legal conditions.

Online Transparency through Web Portal

Important provisions have also been included to ensure timely audits. Societies must upload auditor appointment details on the departmental portal within the financial year; otherwise, the Registrar can appoint one. Audit reports must be uploaded within 15 days of issuance for public access to financial information.

For embezzlement or irregularities, the Act provides for prompt determination and recovery of surcharges based on audit, inspection, or liquidation reports. The state government will also have the authority to order investigations where necessary.

To protect depositors in credit societies, only registered members will be allowed to deposit funds, and a regulatory board will oversee their operations. The government will frame rules to protect members of housing cooperatives from fraud.

The Act also proposes a penalty of ₹50,000 for misuse of the term ‘Cooperative’, allows service of notices and orders via WhatsApp and email, and grants the Registrar authority to issue directions in the interest of societies and their members.