Question

Q. In the context of the Cooperative societies in India, which one of the following statements is incorrect?

• A.
  Right to form Cooperative societies is a fundamental right.
• B.
  The Comptroller and Auditor General audits the accounts of these societies.
• C.
  They are mentioned under the Directive Principles of State Policy in the Constitution.
• D.
  The 97th Constitutional Amendment Act gave constitutional status to the Cooperative societies in India.

Answer 1

The correct option is B

The Comptroller and Auditor General audits the accounts of these societies.
Explanation:

Options (a) (c) and (d) are correct: The 97th Constitutional Amendment Act of 2011 gave constitutional status and protection to co-operative societies.
The act made the following three changes in the constitution:

1. It made the right to form co-operative societies a fundamental right (Article 19 (1) ).
2. It included a new Directive Principle of State Policy on promotion of cooperative societies (Article 43-B 2 ).
3. It added a new Part IX-B in the Constitution which is entitled “The Cooperative Societies” (Articles 243-ZH to 243-ZT).

Option (b) is incorrect:
The state legislature may make provisions for the maintenance of accounts by the co-operative societies and the auditing of such accounts at least once in each financial year. The accounts of every co-operative society shall be audited within six months of the close of the financial year. The audit report of the accounts of an apex co-operative society shall be laid before the state legislature.