How a new Maharashtra ordinance could hand a Congress-won dairy to the Mahayuti

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Last month, Congress leader Satej Patil took on all three of Maharashtra’s ruling parties, the BJP, the Shiv Sena and the NCP, for control of the state’s largest milk union, and won. On Wednesday, the state cabinet changed the rules.The cabinet approved an amendment allowing four government-nominated members to vote on the boards of large co-operative federations that receive government assistance. The move could alter the balance of power at the Kolhapur District Cooperative Milk Producers’ Union, better known by its brand name, Gokul.The numbers show why. Patil’s panel won 13 of the board’s 25 seats. The Mahayuti-backed panel won 12. If four voting nominees appointed by the Mahayuti government join the board, the ruling alliance’s side could have 16 votes to Patil’s 13.The decision comes six days before a court-ordered meeting to elect Gokul’s chairman. Control of it has rarely changed hands. Former MLAs Mahadevrao Mahadik and the late P N Patil dominated Gokul for 30 years, until Satej Patil and Hasan Mushrif, then of the undivided NCP, won it in 2021 when the Maha Vikas Aghadi was in power. (Express photo)Why a dairy mattersGokul is no ordinary co-operative. Set up in 1963, it had an annual turnover of Rs 3,966.28 crore in 2024-25. It works with about 4.41 lakh milk producers and collects milk every day from 8,009 village-level societies across about 1,810 villages in and around Kolhapur district. That reach makes it a force no political party in the region can ignore.Control of it has rarely changed hands. Former MLAs Mahadevrao Mahadik and the late P N Patil dominated Gokul for 30 years, until Satej Patil and Hasan Mushrif, then of the undivided NCP, won it in 2021 when the Maha Vikas Aghadi was in power. After the Shiv Sena and the NCP split, Mushrif joined hands with the BJP. He first said he would stay Patil’s ally in co-operative affairs, but later gave up that stand under pressure from the BJP.This time, Patil fought the combined strength of 10 MLAs, two state cabinet ministers and two MPs from the ruling alliance. The BJP had claimed it would win all 25 seats.Story continues below this adFor the Congress, the result offered a rare bright spot. In the 2024 Assembly election, the party failed to win a single seat in Kolhapur district, and the BJP called it the end of Patil’s career. Earlier this year, Patil made the Congress the single largest party in the Kolhapur zilla parishad and municipal corporation polls, but the three ruling parties combined to keep him from a majority.The standoffThe fight over Gokul moved from the ballot to the boardroom on October 29, when the new board met to elect its chairman. All 12 Mahayuti-backed directors stayed away. Gokul’s bylaws need 14 directors for a quorum, so the meeting was adjourned. Patil’s 13 directors then met separately and declared Shashikant Patil Chuyekar chairman. The dairy administration did not recognise the election. On November 2, the Bombay High Court’s Kolhapur bench ordered a fresh meeting on November 10, with notices to all 25 elected directors. Set up in 1963, it had an annual turnover of Rs 3,966.28 crore in 2024-25. It works with about 4.41 lakh milk producers and collects milk every day from 8,009 village-level societies across about 1,810 villages in and around Kolhapur district. (Express photo)What the ordinance doesThe cabinet decided to promulgate an ordinance amending Section 73AAA (2) of the Maharashtra Cooperative Societies Act, 1960. It provides for five government nominees on the boards of co-operative federations with an annual turnover above Rs 500 crore that receive government assistance, such as share capital, loans, guarantees, funds or land.One nominee will be a government officer not below the rank of assistant registrar, with no vote. The other four, people with experience of running such institutions, will vote in board proceedings. None can contest office-bearer posts. At present, a co-operative can co-opt two directors, and the government can appoint two nominees. The amendment will not apply to District Central Co-operative Banks.Story continues below this adPatil, an MLC and a former minister of state for home, called the decision unfortunate and anti-democratic. “If the government is going to appoint members after the election results, then what is the use of holding elections? Is this how the voters’ mandate is going to be respected?” he asked.The government says the current arrangement is inadequate for large federations handling substantial public funds. An official from the co-operation department said the amendment was meant to prevent deadlocks, particularly when directors are evenly split or a quorum cannot be secured.“In co-operative federations and institutions with large financial turnovers and public interest involved, greater transparency, protection of shareholder interests, professional expertise and effective administrative control are essential,” the official said.