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History of Cooperative Legislation in India Rochadale Society of Equitable Pioneers, which was world’s first successful cooperative society in 1844, was registered under the Friendly Societies Act as there was no separate Law under which Co-operative societies could be registered. It was only in 1852 a separate law was enacted in Britain for co-operatives in the form of Industrial and Provident Societies Act. Need was felt for a separate Law for Co-operatives as the Companies Law does not facilitated the working of co-operative Societies because this Law is basically framed for facilitating capital creation and profit maximization. Co-operatives, on the other hand, are member centered organizations and aim at maximizing services to members. Co-operatives are generally organizations of the poorer and deprived ones hence, the Law has to be simple and easily understandable. The first Law enacted on the subject in the India was the Co-operative Credit Societies Act (CCSA) ...
Origin of Cooperative Movement in India The Indian Cooperative movement, is a child of distress. It has emerged out of direct consequence of the Industrial Revolution. The Revolution led to the decay of cottage industries and growing pressure on land, making agriculture an uneconomic venture. Method of payment of land revenue from kind to cash, thrown the cultivators into the clutches of the money- lenders. Failure of rains and frequent famines increased indebtedness of the farmers by manifold. The government’s initiative to check the growing influence of the Mahajan could not be achieved. The need for providing cheap credit facilities’ to the farmers went on becoming strong and the idea of starting Cooperative credit societies got momentum in 1892.The Madras government sent Sir Federick Nicholson for studying the cooperative movements in European Countries. Nicholson report was receiv...