Opposition leaders have criticised the Centre’s decision to create a new Ministry of Cooperation, calling it an attempt to hijack the cooperative sector, which is presently a state subject, The Hindu reported on Friday. They added that it was an intrusion into the authority of the states, according to PTI.

The Centre had announced the creation of the new ministry on July 5 to “provide a separate administrative, legal and policy framework for strengthening the cooperative movement in the country” and facilitate ease of doing business for cooperatives. Home Minister Amit Shah was given the charge the ministry after a Cabinet reshuffle on July 7.

Cooperatives are people-centred enterprises owned by their members to achieve common economic, social and cultural needs, according to the International Co-operative Alliance.

Opposition leaders claimed the Bharatiya Janata Party wanted to have total control over the cooperative movement in India through the ministry.

“Cooperatives is a State subject under entry 32 of the State list under the Schedule 7 of the Constitution,” Congress leader Ramesh Chennithala told The Hindu. “How can they create a ministry without an Act of Parliament? The move is planned to hijack the cooperative movement.”

Communist Party of India General Secretary D Raja said his party will raise the matter in the Parliament. “Why is it [the ministry] given to the home minister?” he asked, according to The Indian Express. “That raises several questions. Cooperative sector is related to the economy. How come the home minister is given the charge….Cooperative sector is within the domain of state governments. This is nothing but snatching of the rights and powers of the states.”


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Congress leaders claimed the Centre created the new ministry with Gujarat and Maharashtra in mind, The Indian Express reported. In Maharashtra, most of the cooperatives are under the control of the Congress and the Nationalist Congress Party.

Congress leader and former Maharashtra Chief Minister Prithviraj Chavan asked why the government created a separate ministry for cooperatives when a department of cooperation already existed.

“Administratively it makes no difference,” Chavan told The Indian Express. “But there is a political significance of Amit Shah getting additional charge of this ministry. Cooperatives are important for Gujarat and Maharashtra primarily. Both states are very important for the BJP.”

Chavan added: “Assembly elections are coming in Gujarat and in view of the 2024 Lok Sabha elections…the Maha Vikas Aghadi government is a major irritant to the BJP. There are 48 seats in Maharashtra. If all the three parties continue their alliance, and do a proper seat sharing, the BJP will cut a very sorry figure in Maharashtra.”

VN Vasavan, Kerala’s minister for cooperation and registration, asked the government to reconsider the move. “Creation of a new cooperation ministry is an infringement upon the federal rights of the state governments,” he said, according to PTI. “This is an intrusion into the authority of the state governments. This amounts to challenging the federal system of our country.”