Legislative Council Approves Souharda Cooperative Bill

Swift Summary

• the Karnataka Souharda Cooperative (Amendment) Bill 2025 was initially defeated in the Karnataka Legislative Council on Wednesday, leading too embarrassment for the Congress Government.
• Major opposition to the Bill came from the BJP and JD(S), who expressed concerns over clauses requiring cooperative societies to maintain a statutory liquid ratio of 20% and designating certain cooperative societies as ‘statutory liquid assets.’
• Despite opposition, the Legislative Assembly re-approved the Bill and returned it to the Council on Thursday.
• On Friday, Law and Parliamentary Affairs Minister H.K.Patil reintroduced the Bill in the Legislative Council,where Chairman Basavaraj Horatti announced its acceptance.

Indian Opinion Analysis
The swift passage of The Karnataka Souharda Cooperative (Amendment) Bill 2025, despite initial resistance in the Legislative Council, underscores a pronounced effort by policymakers to regulate financial stability within cooperative societies through measures like statutory liquidity ratios. While proponents may argue this contributes positively toward ensuring accountability and solvency within cooperatives,opponents-such as BJP and JD(S)-point out potential burdens or constraints these changes might impose on smaller entities. This back-and-forth highlights an often challenging dynamic between governance reforms aimed at systemic stability versus practical constraints experienced by stakeholders affected by such legislation.

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