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SC Majority Verdict Quashes Part of 97th Constitutional Amendment on Cooperatives

The 97th constitutional amendment introduced part IX B restricting the power of state legislatures in cooperative societies. The amendment laid down several mandates from which the state cannot deviate. The Gujarat High Court in its 2013 judgment ruled that the cooperative society is under entry 32 list II of the 7th schedule and in order to make changes, it requires the ratification of at least one-half of the state legislature under article 368(2) of the constitution. Not doing the same will amount to encroachment in the state legislatures and an attempt to shift the subject of cooperative societies from state list to union list.