Clause(5) says:
"Nothing in this article or in sub-clause (g) of clause (1) of article 19 shall prevent the State from making any special provision,by law, for the advancement of any socially and educationally backward classes of citizens or for the Scheduled Castes or the Scheduled Tribes in so far as such special provisions relate to their admission to educational institutions including private educational institutions, whether aided or unaided by the State, other than the minority educational institutions referred to in clause (1) of article 30.".

Short Background:

• In August 12, 2005 Supreme Court had delivered a judgement by 7 judges uninamously in case of P.A. Inamdar & Ors. vs. State of Maharashtra & Ors..
• Supreme court declared that State can't impose its reservation policy on minority and non-minority unaided private colleges, including professional colleges.
• The 93rd Constitutional amendment was brought (in a hurry) for ensuring reservations to other backward classes and Scheduled castes and Tribes in Private Educational institutions.
• The move was to reverse the Supreme Court Judgement.
• In April 2008, the Supreme Court of India upheld the Government's move for initiating 27% OBC quotas in Government funded institutions.
• The Court has reiterated its prior stand that "Creamy Layer" should be excluded from the ambit of reservation policy. The Supreme Court avoided answering the question whether reservations can be made in private institutions, stating that the question will be decided only as and when a law is made making reservations in private institutions.

In conclusion, this amendment enables the constitution to provide for reservations for OBCs in all "educational institutions" including private, whether aided or unaided, excepting minority educational institutions. It brought all private institutions, whether aided or unaided, under the purview of the Government's policies on reservation and fee structure, it has also quietly achieved much more than that by widening the scope of the Amendment Act to specifically include the term "admission to educational institutions". Article 15 of the constitution, as it was originally framed in 1950, stated the following and did not include the term "admission to educational institutions".

1. The bill specified maximum number of Board members and the tenure of the members.
2. The bill also specified for elections to be held before the expiry of the term of the Board.
3. The bill specified that the Board of a co-operative society that has government shareholding or loans can be superseded for the maximum period of six months.
4. State governments can co-opt upto two nominees on the Board of a co-operative society.
5. The Bill specified certain offences related to co-operative societies. State legislatures can define the penalties related to co-operative societies.

Note: Government of India had constituted a high powered committee in 2005 in the chairmanship of Shri Shivajirao G. Patil to review the achievements of the cooperatives during the last one hundred years, identify the challenges faced by the sector and suggest measures to address them to enable the movement to keep pace with the changing socio-economic environment. The committee was also asked to recommend appropriate lagislation for the Co-operatives.

The committee reviewed the Constitution Amendment Bill (106th Amendment Bill 2006) and recommended some more changes including that introducing new part IXB after part IXA along with the Panchayati Raj Institutions (PRI) and Municipalities would imply that cooperatives are a part of governance. The committee recommended at any other place in the constitution. Committee also suggested that no supersession of the Board of Directors should be allowed in any case where government share holding is less than 51%..

In August 2008 Union Cabinet gave approval for moving certain official amendments in the Constitution (One Hundred and Sixth Amendment) Bill, 2006. This decision included benefits like empowerment of cooperatives by inserting article 43B in Part-IV of the Constitution providing for

1. Voluntary formation, autonomous functioning, democratic control and professional management.
2. Audit by independent auditors or Auditing firms out of the panel approved by State Government or an authority authorized by the Government in this behalf.
3. Free and fair elections to be conducted by an independent body.
4. Directors in the Cooperative Societies will also include two women and one Scheduled Caste representatives.

Current Status: Pending