How the right to form cooperatives became a Fundamental Right — and why the Supreme Court later scaled it back.
The 97th Constitutional Amendment Act, 2011 made three changes: it added "or co-operative societies" to the Fundamental Right to form associations under Article 19(1)(c); it inserted a new Directive Principle, Article 43B, directing the State to promote voluntary, democratic and professionally managed cooperative societies; and it added a new Part IXB (Articles 243ZH to 243ZT) laying down detailed provisions on the incorporation, board composition, elections, term, and audit of cooperative societies.
In Union of India v. Rajendra N. Shah (2021), the Supreme Court held that Parliament lacked the competence to legislate on cooperative societies that fall entirely within a single State, since "cooperative societies" is a State subject (Entry 32, State List). It struck down the parts of Part IXB applicable to purely State cooperative societies but upheld the provisions relating to multi-State cooperative societies, which fall within Parliament's competence.
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