Government Strengthens Multi?State Cooperative Societies Law
ECONOMY & POLICY

Government Strengthens Multi?State Cooperative Societies Law

The Multi?State Cooperative Societies (MSCS) (Amendment) Act and rules, notified in August 2023, aim to strengthen governance, enhance transparency and increase accountability by supplementing existing law and incorporating the ninety?seventh Constitutional Amendment. The amendments establish a Cooperative Election Authority, provide for a Co?operative Ombudsman and require an information officer to improve member access to information. Directors are disallowed from participating in decisions where they or their relatives have an interest and additional disqualification grounds have been introduced.

Boards must include non?unanimous decisions in annual reports, constitute audit and ethics committees, and meet prescribed quorum and chief executive officer appointment criteria to improve oversight. Central determination of accounting and auditing standards and prudential norms for thrift and credit businesses will ensure uniformity and financial discipline. The Central Registrar may inquire into suspected fraudulent conduct and pursue winding up where registration was obtained by misrepresentation.

The amendments introduce concurrent audit for societies with turnover or deposits exceeding five billion (bn) Rs and notify two panels of auditors for entities below and above that threshold to conduct statutory and concurrent audits. Concurrent audit is intended to enable early detection of irregularities and prompt corrective action. Annual returns with audited statements, board decision details and related party disclosures must be filed online with the Central Registrar within six months of the accounting year end or risk disqualification under section 43.

The National Cooperative Database (NCD) provides single?point access to information on cooperative societies nationwide and records 0.848 million (mn) societies as of 20 January 2026, of which 0.658 mn are functional, 0.141 mn are non?functional and 49,179 are under liquidation. The ministry is promoting conversion of primary agricultural credit societies, dairy and fisheries cooperatives into multipurpose societies to diversify activities and strengthen sustainability and has established a Co?operative Rehabilitation, Reconstruction and Development Fund to revive sick societies and meet infrastructural needs. State?wise data will guide formation of 0.2 mn new multipurpose societies to improve coverage.

The Multi?State Cooperative Societies (MSCS) (Amendment) Act and rules, notified in August 2023, aim to strengthen governance, enhance transparency and increase accountability by supplementing existing law and incorporating the ninety?seventh Constitutional Amendment. The amendments establish a Cooperative Election Authority, provide for a Co?operative Ombudsman and require an information officer to improve member access to information. Directors are disallowed from participating in decisions where they or their relatives have an interest and additional disqualification grounds have been introduced. Boards must include non?unanimous decisions in annual reports, constitute audit and ethics committees, and meet prescribed quorum and chief executive officer appointment criteria to improve oversight. Central determination of accounting and auditing standards and prudential norms for thrift and credit businesses will ensure uniformity and financial discipline. The Central Registrar may inquire into suspected fraudulent conduct and pursue winding up where registration was obtained by misrepresentation. The amendments introduce concurrent audit for societies with turnover or deposits exceeding five billion (bn) Rs and notify two panels of auditors for entities below and above that threshold to conduct statutory and concurrent audits. Concurrent audit is intended to enable early detection of irregularities and prompt corrective action. Annual returns with audited statements, board decision details and related party disclosures must be filed online with the Central Registrar within six months of the accounting year end or risk disqualification under section 43. The National Cooperative Database (NCD) provides single?point access to information on cooperative societies nationwide and records 0.848 million (mn) societies as of 20 January 2026, of which 0.658 mn are functional, 0.141 mn are non?functional and 49,179 are under liquidation. The ministry is promoting conversion of primary agricultural credit societies, dairy and fisheries cooperatives into multipurpose societies to diversify activities and strengthen sustainability and has established a Co?operative Rehabilitation, Reconstruction and Development Fund to revive sick societies and meet infrastructural needs. State?wise data will guide formation of 0.2 mn new multipurpose societies to improve coverage.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code