Maharashtra ordinance amends Co-op Act, opens path to Gokul Dairy control
Synopsis
Key Takeaways
The Maharashtra government on 6 November 2026 promulgated an ordinance amending Section 73AAA of the Maharashtra Co-operative Societies Act, 1960, empowering the state to nominate five members — four of them with full voting rights — to the managing committees of state-level federal cooperative societies with annual turnovers exceeding ₹500 crore that receive government assistance. The move directly paves the way for the MahaYuti government to seize effective control of the Kolhapur District Cooperative Milk Producers Union, popularly known as Gokul Dairy.
What the Ordinance Does
The Maharashtra Co-operative Societies (Amendment) Ordinance, 2026 (Ordinance No. XVI of 2026), promulgated by Governor Jishnu Dev Verma, targets federal cooperative societies — excluding District Central Co-operative Banks — that receive state support in any form, including share capital, loans, guarantees, subsidies, or government land. Under the amended provisions, the state government may nominate five members to the managing committee of qualifying societies.
Of the five, one must be a government officer of rank not lower than an Assistant Registrar of Co-operative Societies — this nominee will carry no voting rights. The remaining four must hold relevant qualifications and experience as notified in the Official Gazette, and will carry full voting rights, notwithstanding any restrictions under Section 27(1) of the Act or the society's own by-laws. None of the five nominated members will be eligible to contest or be elected as office-bearers such as Chairman or Vice-Chairman.
Since both Houses of the Maharashtra State Legislature were not in session, Governor Verma exercised powers under Clause (1) of Article 213 of the Constitution of India to promulgate the ordinance with immediate effect. The state Cabinet had cleared the proposal on 4 November 2026.
The Gokul Dairy Power Struggle
The ordinance lands squarely in the middle of a contested board election at Gokul Dairy. The opposition alliance led by Congress leader Satej Patil had secured a majority of 13 seats against MahaYuti's 12 seats in the 25-member board. However, Patil's coalition fell one vote short of the 14-member quorum required to elect the dairy's chairman.
With the induction of four voting members appointed by the state government, MahaYuti's effective tally rises to 16 — comfortably above the threshold needed for a majority. The chairman election is scheduled for 10 November 2026.
Official Justification
According to the Statement of Objects and Reasons accompanying the Gazette notification — issued under the signature of Principal Secretary Pravin Darade — high-turnover federal cooperative institutions occupy a vital position in Maharashtra's economic and financial landscape. The state government argued that because these bodies receive substantial public assistance, it was essential to have experienced domain experts participate directly in decision-making, with voting rights, to ensure transparent and efficient operations.
Chief Minister Devendra Fadnavis and Medical Education Minister Hasan Mushrif defended the ordinance, stating it was intended to avoid the need for a fresh election.
Opposition Backlash and Legal Challenge
The move has drawn fierce criticism from across the political spectrum. Leaders from the Indian National Congress, Shiv Sena (UBT), Maharashtra Navnirman Sena, and NCP (SP) condemned the intervention. Leader of Opposition in the Lok Sabha, Rahul Gandhi, also raised concerns about the decision on social media. Bacchu Kadu, leader of the Prahar Janshakti Party and an ally of government-aligned factions, also publicly criticised the state's stance as inappropriate.
Satej Patil submitted a legal opinion from former Chief Justice of India B R Gavai, arguing that retroactive amendments designed to alter election outcomes would not withstand judicial scrutiny. Despite this warning, the state government proceeded. Patil has announced a large multi-party 'Kolhapur Sangharsh Morcha' protest rally on 9 November 2026 and is expected to challenge the ordinance's constitutionality before the High Court ahead of the scheduled 10 November chairman election.
What Comes Next
The legal challenge in the High Court is likely to be the decisive battleground. If the court stays the ordinance before 10 November, the election may be deferred or contested under the original composition. If it proceeds, MahaYuti is positioned to install its preferred chairman at Gokul Dairy — a cooperative with significant economic weight in western Maharashtra. The outcome will also set a precedent for state intervention in other large cooperative societies that meet the ₹500 crore turnover threshold.