Bill seeks unified legal framework for cooperatives; existing self-reliant cooperatives to transition under 1989 Act
Srinagar, September 20: The Jammu and Kashmir Legislative Assembly is scheduled to take up the Jammu and Kashmir Cooperative Societies (Amendment) Bill, 2026 during its upcoming sitting in Srinagar on Monday, September 21, with the proposed legislation aimed at consolidating the legal framework governing cooperative societies across the Union Territory.
According to the official List of Business issued by the J&K Legislative Assembly Secretariat, the House is scheduled to meet at 10:00 a.m. on September 21. Among the listed business is the introduction of the Cooperative Societies (Amendment) Bill, 2026 by Minister in-charge Cooperatives, Javid Ahmad Dar.
The Bill, already published in an extraordinary issue of the Jammu and Kashmir Official Gazette, seeks to amend the Jammu and Kashmir Cooperative Societies Act, 1989, repeal the Jammu and Kashmir Self-Reliant Cooperative Act, 1999, and provide transitional arrangements for cooperatives registered under the latter legislation. PDF098.pdf
Self-Reliant Cooperative Act proposed for repeal
One of the major provisions of the proposed legislation is the repeal of the J&K Self-Reliant Cooperative Act, 1999. The Bill provides that existing self-reliant cooperatives registered under the 1999 law immediately before commencement of the amendment would be deemed to be registered under the J&K Cooperative Societies Act, 1989, subject to the provisions of the principal Act and rules framed under it.
Such cooperatives would subsequently be required to comply with the requirements of the principal Act within three years from the commencement of the amended legislation.
These requirements include adoption of compliant by-laws, submission of audited accounts and financial statements, fulfilment of membership eligibility conditions, and adherence to governance, audit and supervisory provisions. Failure to comply within the stipulated period could result in cancellation of registration and dissolution in accordance with the prescribed procedure.
Stricter registration conditions proposed
The Bill also proposes additional safeguards before permanent registration of cooperative societies.
For cooperative banks, prior written consent of the Reserve Bank of India would be mandatory in accordance with applicable banking law. For cooperative housing societies, the Registrar would have to satisfy himself regarding the availability and lawful possession of land, supported by certified documents such as title deeds, allotment letters or land records.
Similarly, professional or technical institutions would require approval or licences from the concerned regulatory authority, while cooperatives operating in regulated sectors such as medicines, fertilizers and poultry would require the relevant government licence or No Objection Certificate before registration.
Banking and audit provisions strengthened
The proposed amendments also contain provisions relating to cooperative banking institutions. In the case of cooperative banks, prior written approval of the RBI and/or NABARD, as applicable, would be required before amendments to by-laws are made or registered.
The Bill further proposes that accounts of Urban Cooperative Banks, Central Cooperative Banks and Apex Cooperative Banks be audited and certified by Chartered Accountants appointed by their boards from panels approved by the RBI or NABARD.
It also provides for special audits by the Registrar of Apex, Central, Urban or Rural Cooperative Banks and Cooperative Credit Societies, either on his own motion or at the request of the RBI, with audit reports to be forwarded to the concerned institutions within the prescribed timeframe.
Longer tenure and enhanced financial penalties
The legislation proposes increasing certain periods under the Cooperative Societies Act from three years to five years.
It also proposes substantial enhancement of certain penalties under Section 163, replacing fines of ₹200 with ₹2 lakh in specified provisions and ₹500 with ₹1 lakh in another provision.
The Bill further provides that a cooperative society could face action where it fails to get its accounts audited for three consecutive years.
Government cites need for unified cooperative framework
The Statement of Objects and Reasons says the proposed legislation is intended to establish a consolidated legal framework to bring greater clarity, accountability and governance to the cooperative sector in Jammu and Kashmir.
According to the statement, the existence of two legal frameworks has created confusion and conflicts among stakeholders and affected the cooperative ecosystem. The Bill therefore seeks to repeal the 1999 Self-Reliant Cooperative Act and bring cooperatives registered under it within the framework of the 1989 Cooperative Societies Act.
JJM irregularities report also listed for presentation
Besides the cooperative legislation, Monday’s Assembly business includes the presentation of the House Committee report on alleged irregularities in the implementation of the Jal Jeevan Mission (JJM) in the Union Territory of Jammu and Kashmir.
The report is scheduled to be laid on the Table of the House by Justice Hasnain Masoodi, Chairman of the House Committee constituted to examine the matter.
Assembly session to begin at 10 AM
The Assembly Secretariat has issued a bulletin confirming that the J&K Legislative Assembly has been summoned to meet at Srinagar on Monday, September 21, 2026, at 10:00 a.m. Members have been asked to take their allotted seats according to the approved seating arrangement.
The Secretariat has also arranged First Aid Medical Units within the Assembly premises and at the MLA Hostel in Srinagar, while tea and lunch facilities are to be provided by JKTDC at prescribed rates.
The Cooperative Societies (Amendment) Bill, 2026 is therefore among the key legislative items listed for consideration at the upcoming sitting, with its provisions focused on bringing cooperatives under a common statutory framework, strengthening regulatory oversight and establishing transitional arrangements for self-reliant cooperatives.(KNC)
