The Cooperative Election Authority (CEA) has postponed the election for office bearers of Bihar State Cooperative Marketing Union Ltd. (BISCOMAUN) following a claim by the National Cooperative Development Corporation (NCDC) for a nominated seat on the Board of Directors.
The election was originally scheduled for February 28, 2025, as per the CEA’s notification on February 19, 2025.
However, after receiving a letter from NCDC asserting its right to a nomination, the Authority has decided to hear NCDC’s representatives before proceeding. Consequently, the election programme has been deferred, and a revised schedule will be issued in due course.
This development adds to the already intense debate surrounding the BISCOMAUN elections, particularly regarding the voting rights of nominated directors.
The Bihar government had earlier nominated three representatives to the BISCOMAUN Board under Section 48 of the Multi-State Cooperative Societies (MSCS) Act, 2002, citing its 99.26% majority shareholding in the Rs. 19.76 crore capital allocation between Bihar and Jharkhand. However, Jharkhand raised concerns over the lack of consultation in these nominations.
A major point of contention has been whether nominated directors should have voting rights in selecting office bearers. The Election Authority, after deliberations on February 17, 2025, ruled in favour of allowing them to vote, citing democratic participation for all equity shareholders.
This decision poses a challenge for outgoing Chairman and RJD leader Sunil Kumar Singh, as his group holds 12 out of the 17 elected seats, while the opposition, including five elected members and three nominated directors, aligns with BJP and JDU.
It bears recalling that after a period of anticipation, the office of CEA had announced the elections for the BISCOMAUN on 28th February 2025. The Authority has granted voting rights to the nominated directors appointed by the Bihar government, a decision that has sparked considerable debate in cooperative circles.
The election process had gained momentum following the successful election of the 17 Board of Directors on February 3, 2025. The Government of Bihar had earlier nominated three representatives to the BISCOMAUN Board under Section 48 of the Multi-State Cooperative Societies (MSCS) Act, 2002.
The nomination was based on the government’s dominant shareholding, which stands at approximately 99.26% out of a total share capital of Rs. 19.76 crore allocated between Bihar and Jharkhand.
However, the Government of Jharkhand had raised concerns over the nomination process, citing a lack of consultation. In response, the Managing Director of BISCOMAUN clarified that, as per the organization’s books, the total issued share capital is Rs. 30.86 crore, with Bihar and Jharkhand contributing Rs. 30.61 crore (98.63%). The remaining share capital of Rs. 42.38 lakh is held by cooperative societies under Group A and Group B, while institutions like NCDC and NABARD do not have any shareholding.
A key issue that emerged in the election process is whether nominated members should have voting rights in the selection of office bearers. While there is no explicit provision under the MSCS Act, 2002, for such voting rights, Section 49(2)(a) specifies that the Chairperson and Vice-Chairperson must be elected from among the elected board members.
The Election Authority, after thorough deliberation on February 17, 2025, decided that nominated members should be allowed to vote, considering that all equity shareholders should have democratic participation in the process.
With the election now postponed, all eyes are on the CEA’s revised notification, which will determine the future leadership of BISCOMAUN.
