Report of the Committee on Model Cooperatives Act, May 1991

Abstract

The Report of the Committee on Model Cooperatives Act (1991) by India’s Planning Commission examines the challenges facing the cooperative movement, particularly the decline in autonomy due to excessive government control and restrictive legislation. The committee highlights issues such as bureaucratic interference, ineffective federal structures, and legislative provisions undermining democratic governance in cooperatives. To address these challenges, the Model Cooperative Act proposes simplified registration, strengthened member control, limited government intervention, and enhanced accountability through regular elections and audits. It also emphasizes the role of cooperative federations in supporting member societies. The report recommends establishing an independent Ministry of Cooperation to oversee implementation. Overall, the Model Act seeks to restore the democratic and participatory ethos of cooperatives, enabling them to function as effective instruments of economic and social development in India.