Article 243ZT means old co-operative laws are permanently protected from the new constitutional rules.

The protection is temporary — it lasts only until the state changes its law or one year passes, whichever comes first.

This Article still fully applies to all state co-operative societies today.

After the Supreme Court's 2021 ruling in Union of India v. Rajendra N. Shah, Part IXB (and by extension this transitional clause) largely applies only to multi-state co-operative societies, not purely state-based ones.

The Constitution of India

Article 243ZT

Continuance of existing laws

Notwithstanding anything in this Part, any provision of any law relating to co-operative societies in force in a State immediately before the commencement of the Constitution (Ninety-seventh Amendment) Act, 2011, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authority or until the expiration of one year from such commencement, whichever is less.§

Why this exists

The 97th Constitutional Amendment Act, 2011 added a whole new Part (Part IXB) to the Constitution to standardize how co-operative societies are run across India — covering elections, board terms, audits, and more. Since states already had their own co-operative society laws, many of which conflicted with these new uniform rules, Article 243ZT was added as a transitional provision. It gave states a one-year grace period to align their existing laws with the new constitutional framework, preventing sudden legal chaos for thousands of existing co-operatives.

How courts read it

In Union of India v. Rajendra N. Shah (2021), the Supreme Court examined Part IXB as a whole. It held that provisions applying to state-specific co-operative societies were unconstitutional because the amendment had not been ratified by at least half the state legislatures, as required under Article 368(2) since co-operative societies are a state subject. The Court preserved Part IXB only insofar as it applied to multi-state co-operative societies. This ruling significantly narrowed the practical scope of Article 243ZT, since much of Part IXB it was meant to transition states into no longer applies to purely state co-operatives.

Common misconceptions

Myth: Article 243ZT means old co-operative laws are permanently protected from the new constitutional rules.
Fact: The protection is temporary — it lasts only until the state changes its law or one year passes, whichever comes first.
Myth: This Article still fully applies to all state co-operative societies today.
Fact: After the Supreme Court's 2021 ruling in Union of India v. Rajendra N. Shah, Part IXB (and by extension this transitional clause) largely applies only to multi-state co-operative societies, not purely state-based ones.