The State Government has amended the Kerala Co-operative Societies Rules, 1969 to include a section which deals with motion of no confidence for removal of the Managing Committee by the General Body. The move follows an observation by the High Court of Kerala in 2022 that even though the provision for removal of the entire Managing Committee by the General Body has been contemplated in the Act, rules have not been framed despite lapse of almost 50 years.

The Government noted that there is an urgent need to frame rules for giving effect to the provision in the Act which enables removal of a Managing Committee by the General Body through a noconfidence motion, or else; with the frequent shifting of loyalties by persons belonging to different political parties who are in the helm of affairs in majority of co-operative societies in the state, the smooth functioning of the co-operative societies would be affected.

The draft rules were published in February 2025 inviting suggestions or objection. As per the latest notification issued by the Co-operation department, the Government has received many suggestions and objections and after considering the same, it decided to make an amendment to the said rules suitably.

If the motion is carried with the support of the majority of the members of the General Body, the Managing Committee which lost the confidence shall cease to hold office thereafter and shall be deemed to be vacant forthwith. The Registrar shall then issue an order appointing an Administrator or Administrative Committee in accordance with the provisions of section 33 of the Kerala Cooperative Societies Act, 1969, as per the amended rule.