Chandigarh: The Punjab cabinet today approved amendments to a legislation governing co-operative societies in the state to allow people to contest the mergers of some societies.  

The proposed amendments to the Punjab Co-operative Societies Act, 1961, will also boost efficiencies and transparency in the functioning of such societies, an official spokesperson said after a cabinet meeting, chaired by Chief Minister Amarinder Singh here.  

The cabinet decided to amend Section 13 of the Act, which provides for amalgamation of co-operative societies and allows the societies concerned and their creditors to object to the proposed order of amalgamation of more than one society by the Registrar.  

It has now been decided to give such societies and their creditors another opportunity to approach the government against the orders of the Registrar, he said.  

Another amendment relates to Section 19(2), under which a society can nominate a committee member for voting in the work of another society of which it is a member. The problem which this provision was that, at times, the term of the committee of the nominating society gets completed, which in turn affects representation of the society in the working of the other society.  

To remove this hurdle, the cabinet decided to amend Section 19(2), enabling the co-operative society to nominate a member who is eligible to vote in another co-operative Society, he said. Under sections 26 (I-D) and 27, an administrator is appointed in case the managing committee of a society ceases to exist or is suspended/dismissed.  

The maximum term of the administrator is one year for banking societies and six months for other societies. It has been observed that such a situation results in prolonged litigation and, often, stay orders are given by the courts, he said.  

To deal with such a situation the cabinet approved that the period of delay due to court orders of shall not be counted at the time of computing the tenure of such administrator, he said. PTI