New Delhi, Oct 29 (IANS) The union cabinet Thursday approved an amendment to give a consitutional basis for co-operative organisations, similar to ‘panchayats’ (village councils) and municipal agencies.
“We propose to include new chapter in the constitution,” Chidambaram told reporters after the meeting of the cabinet.

A bill would be presented in parliament to amend the constitution.

It will make it compulsory for co-operative organisations to adhere to certain principles like observation of elections by an independent authority, fixed term of five years for office-bearers, independent professional audit and general body meeting within six months of closure of financial year.

“It is important that co-operative authorities have a constitutional basis, otherwise they have become the playfield of all sorts of people,” said Chidambaram.