Question 1

Consider the following statements regarding the 97th Constitutional Amendment Act of 2011:
1. It made the right to form co-operative societies a fundamental right under Article 19.
2. It included a new Directive Principle of State Policy on the promotion of co-operative societies under Article 43-B.
3. It added a new Part IX-A in the Constitution entitled “The Co-operative Societies”.
Which of the statements given above is/are NOT correct?

Accepted Answer

3 only. The 97th Constitutional Amendment Act of 2011 added Part IX-B to the Constitution, not Part IX-A. Part IX-A deals with 'The Municipalities'. Statements 1 and 2 are correct as the amendment did make the right to form co-operative societies a fundamental right and added Article 43-B as a DPSP.

Question 2

Consider the following pairs with reference to Part IX-B of the Constitution:
Article : Subject-matter
1. Article 243ZJ : Election of Members of Board
2. Article 243ZK : Supersession and Suspension of Board
3. Article 243ZM : Audit of Accounts of Co-operative Societies
4. Article 243ZO : Right of a Member to Get Information
How many of the pairs given above are correctly matched?

Accepted Answer

Only two pairs. Pair 1 is incorrect; Article 243ZJ deals with the 'Number and Term of Members of Board'. Pair 2 is incorrect; Article 243ZK deals with the 'Election of Members of Board'. Pairs 3 (Article 243ZM - Audit of Accounts) and 4 (Article 243ZO - Right of a Member to Get Information) are correctly matched. Therefore, only two pairs are correct.

Question 3

With reference to the powers of the state legislature concerning co-operative societies, consider the following statements:
1. The state legislature is empowered to make provisions for the incorporation, regulation, and winding-up of co-operative societies.
2. The Constitution mandates that the state legislature must ensure co-operative education and training for all members.
3. The state legislature can make provisions to ensure member participation in the management of a co-operative society.
Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. Statement 1 is correct as the state legislature has the power to legislate on the incorporation, regulation, and winding-up of co-operative societies. Statement 2 is incorrect; the text states the legislature 'may provide for' co-operative education, making it a discretionary power, not a constitutional mandate. Statement 3 is correct as the legislature 'may provide for' ensuring member participation in management.

Question 4

Given below are two statements:
Statement I: Part IX-B of the Constitution grants the state legislature the authority to legislate on the regulation and governance of co-operative societies.
Statement II: A state legislature may enact a law requiring every co-operative society to convene its annual general body meeting within six months of the financial year's end.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I.. Statement I is correct; the Constitution empowers the state legislature to regulate co-operative societies. Statement II is also correct; this is a specific provision that the state legislature may make. Statement II serves as a specific example of the general power granted in Statement I, thus it is the correct explanation for Statement I.

Question 5

The state legislature may make provisions for the incorporation and regulation of co-operative societies based on certain principles and rights. Consider the following:
1. Voluntary formation
2. Democratic member-control
3. Member-economic participation
4. Right of a member to access books and accounts
5. Autonomous functioning
How many of the above principles/rights are explicitly mentioned in the constitutional framework for co-operative societies?

Accepted Answer

All five. The constitutional framework allows the state legislature to make provisions based on the principles of voluntary formation, democratic member-control, member-economic participation, and autonomous functioning. It also allows the legislature to provide for a member's right to access the books, information, and accounts of the society. Therefore, all five items listed are explicitly mentioned.

Question 6

Consider the following statements regarding the composition of the board of a co-operative society:
1. The maximum number of directors on the board cannot exceed twenty-one.
2. The state legislature must provide for the reservation of one seat for Scheduled Castes or Scheduled Tribes, and one seat for women.
3. The term of office for elected members of the board is five years from the date of election.
How many of the statements given above are correct?

Accepted Answer

Only two. Statement 1 is correct as the maximum number of directors is capped at twenty-one. Statement 3 is also correct as the term of office is five years. Statement 2 is incorrect because the reservation for women is two seats, not one.

Question 7

Statement I: The board of a co-operative society can be superseded or kept under suspension for a period not exceeding six months.
Statement II: In case of supersession, the administrator appointed to manage the society's affairs must arrange for the conduct of elections within the six-month period.

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation of Statement I.. Both statements are factually correct based on the provisions for interim management. Statement I specifies the maximum duration of suspension (six months). Statement II describes the duty of the administrator appointed during this period. While related, Statement II is a procedural consequence of supersession, not the reason or explanation for the six-month time limit itself. The time limit is a safeguard, and the administrator's duty is the action required within that timeframe.

Question 8

With reference to the governance of co-operative societies,
which of the following statements is NOT correct?

Accepted Answer

The board of any co-operative society can be suspended for negligence, irrespective of whether it has received government financial assistance.. The statement that a board can be suspended irrespective of government financial assistance is incorrect. The text explicitly states that a board shall not be superseded or kept under suspension where there is no Government shareholding, loan, financial assistance, or guarantee.

Question 9

Consider the following pairs regarding the board of a co-operative society:
1. Maximum co-opted members : Two
2. Voting rights of co-opted members : Not granted
3. Eligibility of co-opted members as office bearers : Eligible
4. Maximum suspension period for a board : Six months
How many of the pairs given above are correctly matched?

Accepted Answer

Only three pairs. Pair 1 is correct as the number of co-opted members shall not exceed two. Pair 2 is correct as co-opted members do not have the right to vote. Pair 4 is correct as a board cannot be suspended for more than six months. Pair 3 is incorrect because co-opted members are not eligible to be elected as office bearers of the board. Therefore, only three pairs are correctly matched.

Question 10

With reference to the members of the board of a co-operative society, consider the following statements:
1. Co-opted members are counted in addition to the maximum limit of twenty-one directors.
2. Functional directors are excluded for the purpose of counting the total number of directors against the maximum limit.
3. An election for a new board must be conducted before the expiry of the term of the outgoing board.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3. All three statements are correct. Statement 1 is correct as co-opted members (up to two) are in addition to the twenty-one directors. Statement 2 is correct as functional directors are excluded from the count of twenty-one. Statement 3 is correct as elections must be held before the term expires to ensure a smooth transition.

Question 11

With reference to the financial accountability of co-operative societies, consider the following timelines:
1. Accounts must be audited at least once every two financial years.
2. The audit of accounts must be completed within six months of the close of the financial year.
3. Returns must be filed with the designated authority within three months of the close of every financial year.
How many of the above statements are correct?

Accepted Answer

Only one. Statement 1 is incorrect; accounts must be audited at least once in each financial year. Statement 2 is correct. Statement 3 is incorrect; returns must be filed within six months of the close of the financial year, not three.

Question 12

Consider the following statements regarding the auditing process of co-operative societies:
1. The auditor of a co-operative society is appointed directly by the State Government.
2. The general body of a co-operative society appoints an auditor from a panel approved by the State Government or an authorized body.
3. The state legislature is responsible for laying down the minimum qualifications and experience for auditors.
Which of the statements given above is/are correct?

Accepted Answer

2 and 3 only. Statement 1 is incorrect. The auditor is appointed by the general body of the co-operative society, not directly by the State Government. Statements 2 and 3 are correct as they accurately describe the appointment process and the role of the state legislature in setting qualifications for auditors.

Question 13

Consider the following statements regarding the financial accountability of co-operative societies:
1. The state legislature may make provisions for the maintenance and auditing of accounts of co-operative societies.
2. The audit report of the accounts of every co-operative society must be laid before the state legislature.
3. Every co-operative society is required to file returns to an authority designated by the State Government.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is not correct. The provision specifies that the audit report of an 'apex' co-operative society shall be laid before the state legislature, not the report of 'every' co-operative society. Statements 1 and 3 are correct descriptions of the legal framework.

Question 14

As per the provisions for financial accountability, a co-operative society must file returns that include certain matters. Consider the following items:
1. Annual report of its activities
2. Its audited statement of accounts
3. Plan for surplus disposal as approved by the general body
4. A complete list of all members of the society
5. Declaration regarding the date of holding of its general body meeting
How many of the above are required to be included in the returns filed by a co-operative society?

Accepted Answer

Only four. The required returns include the annual report, audited statement of accounts, plan for surplus disposal, and a declaration regarding the general body meeting. A complete list of all members is not mentioned as a mandatory part of the returns.

Question 15

Consider the following two statements:
Statement I: The state legislature is empowered to prescribe the minimum qualifications and experience for auditors of co-operative societies.
Statement II: The actual appointment of the auditor for a co-operative society is made by its general body from a pre-approved panel.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I.. Both statements are factually correct. The state legislature sets the standards (qualifications) for auditors. The general body of the society performs the act of appointment, but only from a panel approved by the state. Statement II describes the appointment procedure, while Statement I describes the standard-setting function. They are related parts of the same overall process but one does not explain the other; they are distinct functions performed by different bodies.

Question 16

Consider the following statements regarding the regulation of co-operative societies:

Statement I: The Parliament of India is exclusively empowered to make provisions for offences and penalties relating to co-operative societies.

Statement II: A state legislature can enact laws that define adopting corrupt practices during the election of board members as a punishable offence.

Accepted Answer

Statement I is incorrect but Statement II is correct. Statement I is incorrect because the authority to make provisions for offences and penalties for co-operative societies rests with the state legislature, not the Parliament. Statement II is correct as the state legislature's law-making power includes defining acts like adopting corrupt practices during elections as offences.

Question 17

With reference to the regulatory provisions for co-operative societies, consider the following statements:
1. An employer commits an offence if they fail to pay the amount deducted from an employee to a co-operative society within a period of fourteen days, without sufficient cause.
2. The law explicitly states that only an officer of a co-operative society can be penalized for wilfully disobeying a summon or order issued under the State Act.

Accepted Answer

1 only. Statement 1 is correct as it accurately reflects the provision regarding the fourteen-day timeline for employers to remit deducted amounts. Statement 2 is incorrect because the provision applies to 'any person' who wilfully disobeys a summon, not just an officer of the society.

Question 18

Consider the following acts:
1. A co-operative society wilfully furnishing false information.
2. An employer failing to pay deducted employee funds to a society within 21 days.
3. An officer wilfully failing to hand over custody of records and cash to an authorised person.
4. A person adopting corrupt practices only before or during an election, but not after.
How many of the above are considered offences for which a state legislature may make provisions?

Accepted Answer

Only two. Only two acts are correctly listed. Act 1 is an offence. Act 2 is incorrect; the specified period is fourteen days, not 21. Act 3 is an offence. Act 4 is incorrect; the law covers corrupt practices 'before, during or after' the election, making the limitation in the statement inaccurate. Therefore, only acts 1 and 3 are correct.

Question 19

Consider the following statements concerning offences and penalties for co-operative societies:
1. The power to define offences and prescribe penalties for co-operative societies is vested in the state legislature.
2. An offence is committed if a co-operative society wilfully makes a false return, but not if it only furnishes false information.
3. The provision for penalizing the failure to hand over custody of society property applies specifically to an 'officer' of the society.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is not correct. The law specifies that an offence is committed if a society 'wilfully makes a false return OR furnishes false information', meaning either act constitutes an offence. Statement 1 is correct as the state legislature has this power. Statement 3 is also correct as the law specifically mentions 'any officer' in the context of failing to hand over custody of books and property.

Question 20

Consider the following pairs:
Offence : Responsible Party
1. Failure to pay deducted amount : Employer
2. Wilfully making a false return : Co-operative society
3. Failure to hand over custody of books : Any person
4. Adopting corrupt election practices : Any person
How many of the pairs given above are correctly matched?

Accepted Answer

Only three pairs. Pair 1 is correct. Pair 2 is correct. Pair 4 is correct. Pair 3 is incorrectly matched; the law specifies 'any officer' who wilfully fails to hand over custody of books, not 'any person'. Therefore, only three pairs are correctly matched.

Question 21

With reference to the application of constitutional provisions on co-operative societies to multi-state co-operative societies, consider the following pairs:
Term in State Context : Construed as in Multi-State Context
1. State Legislature : Parliament
2. State Act : Central Government
3. State Government : Central Act
How many of the pairs given above are correctly matched?

Accepted Answer

Only one pair. For multi-state co-operative societies, the constitutional provisions are modified such that 'State Legislature' is read as 'Parliament', 'State Act' as 'Central Act', and 'State Government' as 'Central Government'. Therefore, only the first pair is correctly matched.

Question 22

Consider the following statements regarding the constitutional provisions for co-operative societies in Union Territories (UTs):
Statement I: The provisions of Part IXB of the Constitution concerning co-operative societies are applicable to the Union Territories.
Statement II: The President of India is empowered to direct, by notification, that the provisions of Part IXB shall not apply to any specified Union Territory.

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I.. Both statements are factually correct based on the constitutional provisions. The provisions on co-operative societies do apply to UTs by default (Statement I). The President does have the power to make them non-applicable to a UT (Statement II). However, Statement II describes an exception or a constraint on the general rule in Statement I, rather than explaining why the rule exists in the first place. Therefore, it is not the correct explanation.

Question 23

Consider the following statements regarding the application of constitutional provisions on co-operative societies:
1. These provisions are not applicable to Union Territories unless specifically extended by a Presidential notification.
2. The President can prevent the application of these provisions to a part of a Union Territory through an Act of Parliament.
Which of the statements given above is/are NOT correct?

Accepted Answer

Both 1 and 2. Statement 1 is incorrect because the provisions apply to Union Territories by default; the President's notification is to make them *not* apply. Statement 2 is incorrect because the President exercises this power through a 'notification', not through an Act of Parliament. Since both statements are incorrect, the correct answer is 'Both 1 and 2'.

Question 24

Consider the following statements:
1. For multi-state co-operative societies, any reference to 'State Government' is construed as a reference to the 'President'.
2. The President may direct that the provisions on co-operative societies shall not apply to any multi-state co-operative society.
3. The provisions on co-operative societies apply to Union Territories by default.
4. For multi-state co-operative societies, a reference to 'State Act' is construed as a reference to 'Central Act'.
How many of the above statements are correct?

Accepted Answer

Only two statements. Statement 1 is incorrect; 'State Government' is construed as 'Central Government'. Statement 2 is incorrect; the President's power to make provisions non-applicable is for Union Territories, not multi-state co-operative societies. Statements 3 and 4 are correct as per the provisions. Therefore, only two statements are correct.

Question 25

With reference to the constitutional provisions for co-operative societies, consider the following statements:
1. In the context of multi-state co-operative societies, legislative authority is construed to be with the Parliament.
2. The President has the authority to make the provisions on co-operative societies inapplicable to any Union Territory or a part thereof.
Which of the statements given above is/are correct?

Accepted Answer

Both 1 and 2. Statement 1 is correct because for multi-state co-operative societies, any reference to the 'State Legislature' is construed as a reference to 'Parliament'. Statement 2 is also correct as the President may direct, via notification, that the provisions of this part shall not apply to any Union territory or part thereof as specified.

Question 26

Consider the following statements regarding the transition period for state laws on co-operative societies after the commencement of the Constitution (Ninety-seventh Amendment) Act, 2011:
1. Any existing state law inconsistent with the new provisions was to remain in force until amended or repealed by the state legislature.
2. The maximum time limit for such an inconsistent law to continue in force was one year from the commencement of the amendment.
3. If a state law was not amended or repealed, it would automatically cease to be in force after the expiration of one year.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3. The 97th Amendment Act provided that any inconsistent provision in existing state laws on co-operative societies would continue to be in force until amended or repealed, or until the expiration of one year from the commencement of the amendment, whichever is less. This implies all three statements are correct interpretations of the provision.

Question 27

With reference to the objectives of the 97th Constitutional Amendment Act, 2011, consider the following:
1. To ensure the autonomous and democratic functioning of co-operatives.
2. To increase the accountability of management to the members.
3. To transfer the subject of 'co-operative societies' from the State List to the Concurrent List.
4. To provide for deterrence for violation of the provisions of the law.
How many of the above were stated objectives for the amendment?

Accepted Answer

Only three. The 97th Amendment aimed to ensure autonomous and democratic functioning, increase accountability of management, and provide deterrence for legal violations. However, it did not aim to transfer 'co-operative societies' from the State List (Entry 32) to the Concurrent List; the text confirms it remains a State List subject.

Question 28

Consider the following statements regarding the constitutional context of the 97th Amendment Act:
1. The subject "co-operative societies" is enumerated in the State List of the Seventh Schedule of the Constitution.
2. A key justification for the central government's intervention via a constitutional amendment was that state legislatures had failed to enact any legislation on co-operative societies.
3. The amendment was intended to free co-operatives from unnecessary outside interferences and ensure their autonomous organisational set up.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is incorrect. The text clarifies that state legislatures had indeed enacted legislations on co-operative societies, but their performance in qualitative terms was not up to the desired level. Statements 1 and 3 are correct as the text explicitly mentions that 'co-operative societies' is a State List subject and that a goal was to free them from outside interference.

Question 29

The 97th Constitutional Amendment Act, 2011, was enacted to address several weaknesses in the co-operative sector. Consider the following issues:
1. Indefinite postponement of elections
2. Inadequate professionalism in management
3. Low productivity and poor services
4. Lack of accountability of management to members
How many of the above issues were explicitly mentioned as justifications for the amendment?

Accepted Answer

All four. The justification for the 97th Amendment explicitly mentioned all four issues: indefinite postponement of elections, reduced accountability, inadequate professionalism in management, and the resultant poor services and low productivity as key weaknesses that the amendment sought to reform.

Question 30

Statement I: The 97th Constitutional Amendment Act, 2011, was introduced to incorporate provisions in the Constitution to ensure the democratic, professional, and autonomous functioning of co-operative societies.
Statement II: Prior to the amendment, the performance of co-operatives was considered qualitatively inadequate, with issues like postponed elections and lack of professionalism undermining their objectives.

Accepted Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation for Statement I.. Statement I correctly states the primary goal of the 97th Amendment. Statement II correctly identifies the specific problems and weaknesses within the co-operative sector that necessitated this constitutional reform. Therefore, Statement II provides the direct justification and correct explanation for the action described in Statement I.

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