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Monday, April 8, 2013

RTI is applicable to cooperatives because Constitution is supreme



Right to Information (RTI) is applicable now to cooperative institutions due to 97th constitutional amendment. But they do not seem to come to terms with the new reality. Still many cooperative institutes are taking a stand that RTI is not applicable to them. But they can not answer the question, why RTI is not applicable to cooperatives in the changed situation. Cooperative institutes are claiming that RTI is not applicable to them by citing old orders of high courts and information commissions. In our country Constitution is supreme. Nothing is more important than the Constitution. Once there is an amendment in the constitution, the changes are applicable to each and everyone concerned. It would not be wrong to say that the cooperative institutions are dishonoring the Constitution by claiming that the RTI is not applicable to them.

The new reality that RTI is applicable to all cooperative institutes was disclosed for the first time in the country in a column in a daily newspaper, 'Pudhari'. After the article was published, many experts in the field of cooperatives telephoned this writer and debated the issue. But nobody disproved the fact that RTI is applicable to cooperatives. Those who called me raised three points –
1)      Now, the constitution has given us more autonomy
2)      As it is mentioned in the constitution to provide information to members of the cooperative and not to others, it is not binding on us to provide information to those other than members
3)      The state government has not given us any instructions in this regard
4)      Due to the constitutional amendment, small cooperatives as well as cooperative housing societies will find it difficult to operate

Some persons even claimed that they would resort to different ways and would also try to keep cooperatives out of purview of RTI by making one more constitutional amendment.

Before dealing with the points mentioned above, it is necessary to know why the parliament made amendment in the constitution to make it a fundamental right to form a cooperative institute ? Why the cooperatives were given status of autonomous institutes and its office bearers were given so much importance by including cooperatives in the article nine of the constitution?

Cooperative institutes have a major share in the economy of our country and the people at grass roots level have a significant stake in them. Cooperative institutes are combination of government institutes and private bodies. Hence, till now these institutes enjoyed many benefits like government's equity, loan, guarantee to loan just as government agencies but they acted like private bodies when it came to management and accountability. As a result billions of rupees by way of government equity, loan and loan guarantee were wasted and at the same time, billions of rupees of private investment by common people were misappropriated.

These problems were there due to corruption by those who run cooperative institutes as well as due to untrained and unprofessional management in some institutes. So, the image of cooperative institutes was not good. As the 97th constitutional amendment was made, cooperatives were included in the constitution so as to ensure that the government funds were properly utilized, there would be a control on it, these institutes were run professionally, people should feel confident about them and to provide a status and respect to the cooperatives and their office bearers.

Those who claim that the cooperatives are out of purview of RTI because the Constitution has given them more autonomy should take in to account the fact that the local self government bodies like the Gram Panchayats, Nagar Palikas and Municipal Corporations are autonomous and still the RTI is applicable to them.

Directors of some cooperatives have been taking a stand that RTI is not applicable to these institutes as they are not funded by the government. This claim was alright before the constitutional amendment but as the cooperatives have now got a status of autonomous institutes under the Constitution, the RTI is applicable even if there is government funding or not.

Some have taken a stand that it is mentioned in the constitution that members of the cooperatives should be provided information and there is no mention about providing information to others. So it is not obligatory to provide information to those other than members. This stand is also wrong as it is legally binding on directors of every cooperative institute to provide information to members but it does not mean that others do not have a right to get information under RTI. The right of members to get information from their cooperatives is underlined in the constitution. So, it is a constitutional right of members while others have got that right due to Right to Information Act, 2005.

If we consider meaning of autonomy of cooperatives in view of these institutes considering the points raised above, what do we find? They think that autonomy means they are under nobody's control and there is no obligation on them to provide information to anybody except the members. What will happen if this notion is implemented in practice? Let's consider an example of a cooperative credit society. What if somebody misappropriates the funds gathered from public? Because these directors think that right to information is only for members of the cooperative institute and not to others, members may not raise the issue of misappropriation as they would be involved in it and others would not have access to the information. Then why the Constitution has been amended? Is to ensure smooth functioning of cooperative institutes or is it to allow some people to form gangs through cooperative institutes?

Some persons have taken a stand that the RTI is not applicable to them as they have not received any instructions from the state government. The state government has made changes in the Maharashtra Cooperatives Act as per the constitutional amendment. Once the law is changed there is no need to instructions regarding it. It is expected that all those concerned would act as per the changed law. Of course in this case, the information commissions should take an initiative and compel the cooperative institutes to appoint public information officers and appellate authorities.

There is some truth in the claim that the constitutional amendment is stringent and it would become difficult for small cooperatives and cooperative housing societies to operate. But one has to accept some limitations if one want status and authority. Also, the government can not suspend those institutes which are not funded by it, so they need not worry about it.


Box –
Account holders of some cooperative banks expressed satisfaction about RTI becoming applicable to cooperative institutes. Many cooperative banks and other cooperative institutes in the country have doomed due to misappropriation. Many institutes were put under liquidation and administrators were appointed on many. But surprisingly in all these cases, it was only members and depositors who suffered heavy loss. It was rare that directors of such institutes had to suffer. It was found that some 'Dabang' depositors had withdrawn their deposits overnight after the announcement of appointment of an administrator was made and before he took charge. Now, such cases would be exposed due to RTI and those who misappropriated depositors' money would also be exposed.