Constitutional text

The State shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of co-operative societies.

Source: Constitution of India, as published by the Ministry of Law and Justice.

History and context

The 97th Constitutional Amendment of 2011 was a comprehensive effort to strengthen the cooperative sector in India, which had long suffered from political interference and government control. The amendment added Article 43B to the DPSP, inserted Article 19(1)(c) to explicitly include the right to form cooperatives as a Fundamental Right, and added Part IXB (Articles 243ZH to 243ZT) creating a constitutional framework for cooperative societies parallel to the panchayati raj and municipality frameworks. The amendment was partly struck down by the Supreme Court in 2021 (in so far as it applied to multi-state cooperatives without states' consent), but Article 43B itself remains in force.

Amendments

  • 97th Amendment (2011) Inserted Article 43B directing the state to promote voluntary, autonomous, democratically controlled cooperative societies.

Key Supreme Court cases

Union of India v. Rajendra N. Shah (2021)

Supreme Court upheld the 97th Amendment except for provisions relating to multi-state cooperative societies, which required ratification by state legislatures under Article 368.

Related articles

Last reviewed: 3 July 2026