In Brief
The Supreme Court held that cooperative banks are 'banks' under the SARFAESI Act and subject to its Section 13 recovery procedure. While cooperative societies fall under State jurisdiction (Entry 32, List II), their banking activities are governed by Union legislation (Entry 45, List I). The Court upheld the 2003 notification and 2013 amendment including cooperative banks under the SARFAESI Act, finding them within Parliament's legislative competence. The decision resolved the conflict with Greater Bombay Coop. Bank Ltd., clarifying that recovery of bank dues is integral to banking and that incidental trenching on State matters is permissible when legislation substantially concerns banking.
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