What happened: SKM’s challenge to the NCDC (Amendment) Act, 2026

Samyukt Kisan Morcha (SKM) alleged that the National Cooperative Development Corporation (Amendment) Act, 2026 undermines federal rights of States by changing the way cooperation is governed through the National Cooperative Development Corporation (NCDC). SKM’s stated position is that the amendment shifts focus away from priority agriculture and agriculture-linked rural development and redesigns cooperative support around a corporate model of urban-centric development.

Background and earlier position: cooperation in the State List and limits from a Supreme Court order (2021)

SKM’s federalism argument starts from the constitutional arrangement where ‘cooperation’ appears in the State List under the Seventh Schedule. SKM therefore claims that a Centre-linked amendment touching cooperative societies amounts to a direct intrusion into State powers. SKM also points to a Supreme Court order in 2021, which SKM says had restricted the Centre’s ability to intervene in State-governed cooperative societies. SKM further claims that the 2026 amendment is intended to nullify that judicial restriction.

What changed now: SKM’s claimed operational effects of the 2026 amendment

SKM alleges the NCDC amendment changes the governance and financial direction of cooperatives in ways that, in SKM’s view, centralise power with the Union government. SKM’s claimed changes include: Direct intervention in cooperative societies: SKM alleges the amendment allows NCDC to directly intervene in cooperative societies and to take cooperatives’ shares publicly. Centralisation vs autonomy: SKM frames the amendment as violating cooperation principles of autonomy and independence by enabling Union-linked control over State-governed cooperatives. Rural limitation removed for eligible cooperatives: SKM alleges the amendment removes a requirement that eligible industrial and village cooperatives be limited to rural areas. Expansion beyond agriculture: SKM alleges eligible operations can extend beyond agriculture into non-agricultural sectors. Shift in development priorities: SKM alleges rural development resources could be diverted from agriculture-linked rural priorities toward urban-centric, corporate-oriented development.

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