The formation of Karnataka State Souharda Federal Cooperative Ltd. (KSSFCL),     under the aegis of The Karnataka Souharda Sahakari Act – 1997, has been a unique structure in the Indian Cooperative movement, wherein the statutory elected body for the Management of Federal. The KSSFCL has been formed as per provisions of the KSS Act, 1997 itself & it continues to strengthen the Souharda Cooperative movement in Karnataka.

When the souharda cooperatives get registered, the Membership to this Federal is automatic along with registration and there is no need separate application for membership to KSSFCL. The exiting ‘Federation’ concept of cooperatives becoming members has not been successful on many dimensions, whereas Souharda Cooperatives getting directly nurtured under ‘federal Structure’ has been a successful experiment and it has to replicated in liberal Act implemented states of India.

The Souharda Cooperatives enjoy functional autonomy in design and implementation of their Business plans, customer service activities, etc based on the needs of their members. Unlike other forms of cooperatives in india, the interference of State / Central in day-to-day operations of Souharda Cooperatives is almost minimal.