AMENDING ACT

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Sections (351)

45B · Removal and suspension of Chairperson, Vice Chairperson and Members.

45C · Disclosure and declaration of interest.

45E · Filling of casual vacancy.

45F · Restriction of reemployment.

45G · Vacancies, etc., not to invalidate proceedings of Authority.

45 · -I. Functions of Authority.

45J · Elections of members of board.

45K · Appointment of Returning Officer and other officers.

45L · Power to issue directions.

63A · Establishment of Co -operative Rehabilitation, Reconstruction and Development Fund.

63B · Rehabilitation and reconstruction of sick societies.

63C · Financial assistance to multi -State co -operative societies for development.

70 · Appointment and remuneration of auditors .

70A · Concurrent Audit.

85A · Co -operative Ombudsman.

86 · Winding up of multi-State co-operative societies .

87 · Winding up of co-operative bank at the direction of Reserve Bank .

88 · Reimbursement to the Deposit Insurance Corporation by liquidator .

89 · Liquidator .

97 · Central Registrar or arbitrator or person authorised to be civil court for certain purposes .

98 · Recovery of sums due to Government .

98A · Review of decision.

103 · Co -operative societies functioning immediately before reorganisation of States .

100 · No appeal in certain cases .

105A · Provisions of this Act not in derogation of any other law.

106 · Appointment of Co-operative Information Officer.

106A · Copy of rules and bye-laws, etc., for inspection.

107 · Place of keeping and inspection of, registers and returns .

108 · Inspection of books of account, etc ., of multi -State co -operative society .

109 · Annual accounts and balance -sheet .

110 · Minutes of proceedings of general meetings and of board and other meetings .

120A · Filing of applications, documents, inspections, etc., in electronic form.

120B · Application of Banking Regulation Act, 1949.

121 · Certain Acts not to apply .

1 · Short title, extent and commencement . — (1) This Act may be called the Multi-State Co-operative Societies Act, 2002.

2 · Application . — This Act shall apply to—

3 · Definitions . — In this Act, unless the context otherwise requires,—

2 · [(aa) "Authority" means the Co-operative Election Authority established under sub-section (1) of section 45;]

1 · 19th August, 2002, vide notification No. G.S.R. 571(E), dated 16th August, 2002, see Gazette of India, Extraordinary, Part II, sec. 3(i).

2 · Ins. by Act 11 of 2023, s. 2 (w.e.f. 3-8-2023).

3 · Subs. by s. 2 , ibid., for "under sub -section (1) of section 4" (w.e.f. 3-8-2023).

1 · [(fa) "Co-operative Ombudsman" means the Ombudsman appointed by the Central Government under section 85A;]

3 · [(ka) "financial year", in relation to any multi-State co-operative society or class of such societies, means the year ending on the 31st day of March of the year and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day;]

1 · Ins. by Act 11 of 2023, s. 2, (w.e.f. 3-8-2023).

2 · Cl . (i) omitted by s. 2, ibid. (w.e.f. 3-8-2023).

3 · Ins. by s. 2, ibid. d. (w.e.f. 3-8-2023).

4 · Central Registrar . — (1) The Central Government may appoint a person to be the Central Registrar of Co -operative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.

5 · Multi -State co -operative societies which may be registered . — (1) No multi-State co-operative society shall be registered under this Act, unless,—

6 · Application for registration . — (1) For the purposes of registration of a multi-State co-operative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed.

7 · Registration . — (1) If the Central Registrar is satisfied—

1 · [(2) Without prejudice to the provisions of sub-section (1), the Central Registrar may register a multi -State co -operative society if the aggregate value of the paid-up capital and provision of reserves along with liquidity, exposure and other prudential norms specified in bye-laws of the proposed multi -State co -operative society in the business of thrift and credit are in accordance with such guidelines as may be prescribed:

8 · Registration certificate . — Where a multi -State co -operative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled.

9 · Multi -State co -operative society to be body corporate . — (1) The registration of a multi-State co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to acquire, hold and dispose of property, both movable and immovable, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted, and shall, by the said name, sue or be sued.

1 · Subs. by Act 11 of 2023, s. 3, for sub-section (2) and (3) (w.e.f. 3-8-2023).

10 · Bye-laws of multi-State co-operative societies . — (1) Every multi-State co-operative society may make its bye-laws consistent with the provisions of this Act and the rules made thereunder.

1 · Sub. by Act 11 of 2023, s. 4, for “address” (w.e.f. 3-8-2023).

11 · Amendment of bye-laws of a multi-State co-operative society . — (1) No amendment of any bye-law of a multi-State co-operative society shall be valid, unless such amendment has been registered under this Act.

12 · When amendment of bye-laws comes into force . —A —An amendment of the bye-laws of a multi -State co -operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.

13 · Change of name . — (1) A multi-State co-operative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the multi-State co-operative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State co-operative society by its former name, may be continued or commenced by or against its new name.

14 · 1 [Address] . — Every multi-State co-operative society shall have principal place of business and an 2 [address, including e-mail address] registered in the manner prescribed to which all notices and communications may be sent.

15 · Publication of name by multi-State co-operative society . — Every multi-State co-operative society—

16 · Liability . — (1) No multi-State co-operative society with unlimited liability shall be registered after the commencement of this Act:

1 · Subs. by Act 11 of 2023, s. 5, for “Change of address” (w.e.f. 3-8-2023).

2 · Subs. by s. 5, ibid., for “address” (w.e.f. 3-8-2023).

17 · Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative societies . — (1) A multi-State co-operative society may, by a resolution passed by a majority of not less than two -thirds of the members, present and voting at a general meeting of the society held for the purpose, —

1 · [(10) Any co-operative society may, by a resolution passed by majority of not less than two-thirds of the members present and voting at a general meeting of such society, decide to merge into an existing multi -State co -operative society:

18 · Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative bank in certain cases . —W —When an order of moratorium has been made by the Central Government under sub -section (2) of section 45 of the Banking Regulation Act, 1949 (10 of 1949) in respect of a co-operative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium , prepare a scheme—

19 · Promotion of subsidiary institution . — (1) Any multi-State co-operative society may, by a resolution passed at general meeting by a majority of members present and voting, promote one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects.

20 · Liability of a co-operative bank to deposit insurance and credit guarantee corporation . — Notwithstanding anything contained in section 17 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), is amalgamated or reorganised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of that Act, the bank with which such insured bank is amalgamated or the new co-operative bank formed after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and

1 · Ins. by Act 11 of 2023, s. 6 (w.e.f. 3-8-2023).

2 · The word "or" omitted by s. 7 , ibid. d. (w.e.f. 3-8-2023).

3 · Sub -clause (iii) omitted by s. 7 ibid. d. (w.e.f. 3-8-2023).

21 · Cancellation of registration certificate of multi-State co-operative societies in certain cases . — (1) Where the whole of the assets and liabilities of a multi-State co-operative society are transferred to another multi -State co -operative society or to a co-operative society in accordance with the provisions of section 17, the registration of the first mentioned multi-State co-operative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

22 · Conversion of a co -operative society into a multi-State co-operative society . — (1) A cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi -State co -operative society:

1 · [(c) the co-operative society shall be deemed to have been de-registered under the law relating to such co -operative society for the time being in force in that State, from the date of the certificate as issued by the Central Registrar and forwarded to such co-operative society, along with a copy of the registered amendment under sub -section (3).]

23 · Registration of federal co-operative . — (1) Every federal co-operative shall obtain registration certificate in accordance with the provisions of this Act.

24 · Functions of federal co -operative . — (1) Subject to the provisions of this Act and any other law for the time being in force, a federal co-operative may discharge the functions to facilitate the voluntary formation and democratic functioning of co-operative societies as federal co-operative or multi-State co-operatives based on self-help and mutual aid.

1 · Subs. by Act 11 of 2023, s. 8, for “sub-section (5), for clause (c)” (w.e.f. 3-8-2023).

25 · Persons who may become members . — (1) No person shall be admitted as a member of a multi -State co -operative society except the following, namely:—

26 · Nominal or associate member of society . —A —A multi -State co -operative society may, if provided in its bye-laws, admit a person as nominal or associate member:

2 · [Provided further that nominal or associate member can be issued non-voting shares which may not confer any interest in the management of the multi-State co-operative society including right to vote, to be elected as a director of the board or participate in the general body meetings:

27 · Educational course for members . — (1) Every multi-State co-operative society shall organise co-operative education programmes for its members, directors and employees.

1 · The words “be entitled to subscribe the shares of such society or” omitted by Act 11 of 2023, s. 9 (w.e.f. 3-8-2023).

2 · Ins. by s. 9 , ibid. (w.e.f. 3-8-2023).

28 · Members not to exercise rights till due payment made . —N —No member of a multi -State co-operative society shall exercise the rights of a member, unless he has made the payment 1 [of all dues to the multi -State co -operative society including the payment in respect of membership or has availed such minimum level of product or services as specified in the bye-laws , ] or has acquired such interest in the society, as may be specified in the bye-laws.

29 · Disqualification for member of a multi-State co-operative society . —N —No person shall be eligible for being a member of a multi-State co-operative society if—

2 · [(b) he fails to use the minimum level of the products or services as specified in the bye-laws for two consecutive years; or]

30 · Expulsion of members . — (1) A multi-State co-operative society may, by resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society:

31 · Vote of members . — Every member of a multi-State co-operative society, including a member who is an employee of such society, shall have one vote in the affairs of the society:

32 · Manner of exercising vote . — Every member of a multi-State co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy:

1 · Subs. by Act 11 of 2023, s. 10, for “to the society in respect of membership,” (w.e.f. 3-8-2023).

2 · Subs. by s. 11, ibid., for cl . (b) (w.e.f. 3-8-2023).

3 · Subs. by s. 12, ibid ., for "one year" (w.e.f. 3-8-2023).

33 · Restriction on holding of shares . —N —No member, other than the authorities referred to in clauses (c) to (g) of sub-section (1) of section 25 or a multi-State co-operative society or a co-operative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed in the rules or bye-laws of such multi-State co-operative society.

34 · Restriction on transfer of shares or interest . — The transfer of share or interest of a member in the capital of a multi-State co-operative society shall be subject to such conditions as to maximum holding as specified in section 33.

1 · [35. Redemption of shares . — (1) The shares of the authorities referred to in clauses (c) and (d) of sub -section (1) of section 25, held in multi-State co-operative societies,––

36 · Transfer of interest on death of members . — (1) On the death of a member, a multi-State co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the bye-laws made in this behalf or, if there is no person nominated, to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules:

37 · Liabilities of past member and estate of deceased member . — (1) Subject to the provisions of sub -section (2), the liability of a past member or of the estate of a deceased member of a multi-State co-operative society for the debts of the society as they existed , —

1 · Subs. by Act 11 of 2023, s. 13, for section 35 (w.e.f. 3-8-2023).

38 · Constitution, powers and functions of general body . — (1) The general body of a multi-State co-operative society shall consist of all the members of such society:

39 · Annual general meeting of general body . — (1) The board of every multi-State co-operative society shall, within such period as may be prescribed, and not later than six months after the close of the corresponding year, call the annual general meeting in the manner prescribed for the purpose of—

1 · [(p) appointment of auditor.]

1 · Ins. by Act 11 of 2023, s. 14 (w.e.f. 3-8-2023).

40 · Special general meeting of general body . — (1) The Chief Executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws.

41 · Board of directors . — (1) Subject to the provisions of this Act and rules, there shall be a board of directors for every multi-State co-operative society consisting of such number of members as specified in sub -section (3).

1 · [(3) The board shall consist of such number of directors not exceeding twenty-one, as may be specified by the bye-laws, out of which one member shall be Scheduled Caste or Scheduled Tribe and two shall be women in the board of multi -State co -operative society consisting of individuals and having members from such class or category of persons:

1 · Subs. by Act 11 of 2023, s. 15, for sub-section (3) (w.e.f. 3-8-2023).

42 · Association of employees in management decision making process . — Every multi-State co-operative society shall devise such procedure, as may be specified in the bye-laws or in the administrative instructions of such society, for the association of the representatives of employees of such multi -State co -operative societies at such level or bodies as may be specified in the bye-laws or the instructions issued in this regard, in the management decision making process.

43 · Disqualifications for being a member of board . — (1) No member of any multi-State co-operative society or nominee of a member, society or a national co-operative society shall be eligible for being chosen as, or for being, a member of the board of such multi-State co-operative society or a national co -operative society, or of any other co-operative society to which the multi-State co-operatives society is affiliated, if such member—

1 · Ins. by Act 11 of 2023, s. 16 (w.e.f. 3-8-2023).

1 · [(o) has been disqualified under sub-section (7) of section 41.]

1 · [(1A) A member who has been a director of the board of any multi-State co-operative society or co-operative bank, where such board has been superseded, shall not be eligible to be elected as director of the board of another multi -State co -operative society or co-operative bank for a period of five years, from the date of such supersession:

2 · [(a) to provide information, documents, personnel, funds or expenses or any other assistance as required by the Co-operative Election Authority for conducting elections under this Act in such manner as may be prescribed; or]

1 · Ins. by Act 11 of 2023, s. 16 (w.e.f. 3-8-2023).

2 · Subs. by s. 16, ibid., for clause (a) (w.e.f. 3-8-2023).

3 · Subs. by s. 16, ibid ., for "general meeting" (w.e.f. 3-8-2023).

1 · [(d) to make contribution to the co-operative education fund referred to in clause (b) of sub -section (1) of section 63 or the Co-operative Rehabilitation, Reconstruction and Development Fund established under section 63A; or

44 · Prohibition to hold office of chairperson or president or vice-chairperson or vice-president in certain cases . — (1) No member of a board shall be eligible to be elected as the chairperson or president or vice-chairperson or vice-president of a multi-State co-operative society if such member is a Minister in the Central Government or a State Government.

2 · [45. Establishment of Cooperative Election Authority . — (1) The Central Government shall, by notification, establish an Authority to be known as the Co-operative Election Authority which shall consist of a Chairperson, a Vice-Chairperson and Members not exceeding three to be appointed by the Central Government on the recommendation of the Selection Committee consisting of such persons as may be prescribed.

1 · Ins. by Act 11 of 2023, s. 16 (w.e.f. 3-8-2023).

2 · Subs. by s. 17, ibid ., for section 45 (w.e.f. 3-8-2023).

45A · Power of Chairperson.—The Chairperson of the Authority shall have powers of general superintendence and directions in the conduct of the affairs of the Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such other powers and functions as may be prescribed.

45B · Removal and suspension of Chairperson, Vice Chairperson and Members.—(1) The Central Government may, by order, remove from office the Chairperson, Vice-Chairperson or Member of the Authority, other than ex officio Member, if the Chairperson, Vice-Chairperson or Member of the Authority, as the case may be,—

45C · Disclosure and declaration of interest. — (1) Before appointing any person as Chairperson, Vice -Chairperson or Member, the Central Government shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Chairperson, Vice -Chairperson or Member.

45D · Resignation of Members.— The Chairperson, Vice-Chairperson or Members, other than ex officio Members, may, by notice in writing of not less than thirty days under their hand addressed to the Central Government, resign their office and on such resignation being accepted by that Government, shall be deemed to have vacated their office:

45E · Filling of casual vacancy.— If a casual vacancy occurs in the office of the Chairperson, ViceChairperson or Member of the Authority, whether by reason of his death, resignation or otherwise, such vacancy shall be filled within a period of ninety days by making a fresh appointment in accordance with the provisions of section 45 and the person so appointed shall hold office for the remainder of the term of office for which the Chairperson, Vice-Chairperson or Member of the Authority, as the case may be, in whose place he is so appointed.

45F · Restriction of reemployment.—The Chairperson, Vice-Chairperson and Member of the Authority, on ceasing to hold office shall not, for a period of two years, accept any employment (including as consultant or otherwise) in any co-operative society:

45G · Vacancies, etc., not to invalidate proceedings of Authority.—No act or proceeding of the Authority shall be invalid merely by reason of—

45H · Meetings of Authority.—(1) The Authority shall meet at such places and times and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at its meetings), as may be prescribed.

45 · -I. Functions of Authority.— The Authority shall discharge the following functions, namely:––

45J · Elections of members of board. — (1) No person shall be eligible to be elected as a member of the board or office bearer of a multi -State co -operative society, unless he is an active member of the general body of that society.

45K · Appointment of Returning Officer and other officers.— (1) The Authority may appoint a Returning Officer to conduct the election of the multi-State co-operative societies and discharge such functions, as directed by the Authority, in such manner as may be prescribed.

45L · Power to issue directions. — The Authority may, by general or special order, issue such directions to the board, its members, Chief Executive and other staff of the multi -State co -operative society as may be necessary for the conduct of free and fair elections and the board, its members, Chief Executive and staff of the society shall comply with such directions.]

46 · Holding of office in co-operative society . —N —Notwithstanding anything contained in this Act, no person shall be eligible to hold, at the same time, office of a president or chairperson or vice-president or vice -chairperson on the board of more than two multi-State co-operative societies.

47 · Removal of elected members by general body . —A —An elected member of a board, who has acted adversely to the interests of multi-State co-operative society, may on the basis of a report of the Central Registrar or otherwise be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two-third of the members present and voting at the meeting:

48 · Nominee of Central Government or State Government on board . — (1) Where the Central Government or a State Government has subscribed to the share capital of a multi-State co-operative society, the Central Government or the State Government, as the case maybe, or any person authorised by the Central Government or the State Government shall have right to nominate on the board such number of persons as its members on the following basis, namely:—

49 · Powers and functions of board . — (1) The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.

1 · [(aa) to elect the Chairperson and Vice-Chairperson or President and Vice-President of the multi -State co -operative society from amongst the elected members of the board in accordance with the directions of the Authority:

1 · [Provided that the recruitment of such employees shall be subject to such procedure as may be prescribed.]

50 · Meeting of board . — (1) The Chief Executive shall convene the meetings of the board at the instance of the chairperson or president of the multi-State co-operative society.

1 · Ins. by Act 11 of 2023, s. 18 (w.e.f. 3-8-2023).

1 · [Provided that where such Chairperson or President fails to direct the Chief Executive to convene the meeting of the board within the quarter, such Chief Executive shall convene the meeting on the basis of requisition of the Vice-Chairperson or Vice-President or any other Member of the board:

2 · [(3) The Chairperson or President, if for any reason, is unable to attend a meeting of the board, the Vice -Chairperson or Vice-President and in the absence of both, any other Member of the board chosen by the Members of the board present from amongst themselves at the meeting, shall preside over the meeting.

51 · Chief Executive . — (1) There shall be a Chief Executive, by whatever designation called, of every multi -State co -operative society to be appointed by the board and he shall be a full-time employee of such multi -State co -operative society.

3 · [(1A) No multi-State co-operative society shall appoint or continue the employment of any person as the Chief Executive who —

52 · Powers and functions of Chief Executive . — The Chief Executive shall under the general superintendence, direction and control of the board, exercise the powers and discharge the functions specified below, namely:—

1 · Ins. by Act 11 of 2023, s. 19 (w.e.f. 3-8-2023).

2 · Subs. by s. 19, ibid., for sub-section (3) (w.e.f. 3-8-2023).

3 · Ins. by s. 20 , ibid. (w.e.f. 3-8-2023).

53 · Committees of board . — 2 [(1) The board may constitute an Executive Committee, and such other committees or sub -committees as may be specified in the bye-laws of the multi-State co-operative society:

54 · Securing possession of records, etc . — (1) If—

1 · Subs. by Act 11 of 2023, s. 21, for "thirty days" (w.e . f. 3 -8 -2023).

2 · Subs. by s. 22, ibid., for Sub-section (1) (w.e.f. 3-8-2023).

61 · Government aid to multi -State co -operative societies . —N —Notwithstanding anything contained in any law for the time being in force, the Central Government or a State Government, on receipt of request from a multi -State co -operative society and with a view to promoting co-operative movement, may,—

62 · Funds not to be divided by way of profit . — (1) No part of the funds, other than net profits, of a multi -State co -operative society shall be divided by way of bonus or dividend or otherwise distributed among its members.

63 · Disposal of net profits . — (1) A multi-State co-operative society shall, out of its net profits in any year , —

1 · [(b) credit annually one per cent. of net profit to co-operative education fund to be maintained by the Central Government in such manner as may be prescribed and the proceeds from such fund shall be used for co -operative education and training through the National Co-operative Union of India and any other agency in such manner as may be determined by the Central Government;]

2 · [63A. Establishment of Co-operative Rehabilitation, Reconstruction and Development Fund. — (1) The Central Government shall establish a Fund, to be called the Co-operative Rehabilitation, Reconstruction and Development Fund for revival of sick multi-State co-operative societies as referred to in section 63B and for development purposes in such manner as may be determined by it and there shall be credited to such Fund annually by multi-State co-operative societies which are in profit for the preceding three financial years one crore rupees or one per cent. of the net profits of such multi-State cooperative society, whichever is less.

63B · Rehabilitation and reconstruction of sick societies. — (1) If, at any time, the Central Registrar, is of the opinion that a multi-State co-operative society has become sick, he may, by an order, declare such society as sick co-operative society.

1 · Subs. by Act 11 of 2023, s. 23, for cl . (b) (w.e.f. 3-8-2023).

2 · Ins. by s. 24, ibid . (w.e.f. 3-8-2023).

63C · Financial assistance to multi -State co -operative societies for development . — (1) The Central Government may, on an application made by a multi-State co-operative society which has contributed to the Fund for continuous five preceding financial years, grant such financial assistance as it may consider appropriate to the society out of the Fund for infrastructural requirement:

64 · Investment of funds . —A —A multi -State co -operative society may invest or deposit its funds—

1 · [(b) in any of the securities issued by the Central Government, State Government, Government Corporations, Government Companies, Authorities, Public Sector Undertakings or any other securities ensured by Government guarantees;]

3 · [(e) with any other scheduled or nationalised bank.

65 · Restriction on contribution . —N —No multi -State co -operative society shall make a contribution, either in money or in kind, whether directly or indirectly, to an institution which has an object of furtherance of the interest of a political party.

66 · Restriction on loans . — (1) A multi-State co-operative society, other than a co-operative bank, shall not make a loan to a member on the security of his share or on the security of a non-member.

67 · Restrictions on borrowing . — (1) A multi-State co-operative society may receive deposits , 4 [from its voting members] raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws:

1 · Subs. by Act 11 of 2023, s. 25 for cl . (b) (w.e.f. 3-8-2023).

2 · Ins. by s. 25 , ibid. (w.e.f. 3-8-2023).

3 · Subs. by s. 25, ibid., for clause (e) and (f) (w.e.f. 3-8-2023).

4 · Ins. by Act 21 of 2019, s. 42 the Sch . II (w.e.f. 21-2-2019).

5 · Subs. by Act 11 of 2023, s. 26 for “ten times” (w.e.f. 3-8-2023).

1 · [Explanation . — For the removal of doubts, it is hereby clarified that a multi-State co-operative society shall not be entitled to receive deposits from persons other than voting members.]

68 · Restriction on other transactions with non -members . — Save as provided in sections 66 and 67, the transaction of a multi -State co -operative society with any person other than a member, shall be subject to such prohibitions and restrictions, if any, as may be specified in the bye-laws.

69 · Contributory provident fund . — (1) Subject to the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952), a multi-State co-operative society having such number or class of employees as may be prescribed, may establish a contributory provident fund for the benefit of its employees to which shall be credited all contributions made by the employees and the society in accordance with the bye-laws of the society.

70 · Appointment and remuneration of auditors . — (1) Every multi-State co-operative society shall cause to be audited by an auditor referred to in sub-section (2), its accounts at least once in each year.

1 · [Provided that such auditors or auditing firm shall be appointed from a panel approved by the Central Registrar:

2 · [(3A) An auditor appointed under sub-section (2) shall submit the audit of accounts report to the multi -State co -operative society, within six months from the date of closing of the financial year, to which such accounts relate.]

1 · Subs. Act 11 of 2023, s. 27, for proviso (w.e.f. 3-8-2023).

2 · Ins. by s. 27 , ibid. (w.e.f. 3-8-2023).

1 · [Provided that where such vacancy is caused by the resignation or death of an auditor, the vacancy shall be filled by the board from the panel of auditors from which such auditor was appointed.]

2 · [(10) The audit report of the accounts of the national co-operative societies shall be laid before each House of Parliament.]

3 · [70A. Concurrent Audit.— In case of multi-State co-operative societies,––

1 · Subs. by Act 11 of 2023, s. 27, for cl . (a) (w.e.f. 3-8-2023).

2 · Ins. by s. 27 , ibid. (w.e.f. 3-8-2023).

3 · Ins. by s. 28 , ibid. (w.e.f. 3-8-2023).

71 · Provision as to resolutions for appointing or removing auditors . — (1) A special notice shall be required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed.

72 · Qualifications and disqualifications of auditors . — (1) A person shall not be qualified for appointment as an auditor of a multi-State co-operative society unless he is a chartered accountant within the meaning of the Chartered Accountants Act , 1949 (38 of 1949).

73 · Powers and duties of auditors . — (1) Every auditor of a multi-State co-operative society shall have a right of access at all times to the books, accounts and vouchers of the multi-State co-operative society, whether kept at the head office of the multi-State co-operative society or elsewhere, and shall be entitled to require from the officers or other employees of the multi-State co-operative society such information and explanations as the auditor may think necessary for the performance of his duties as an auditor.

1 · [(6) the multi-State co-operative society or class of multi-State co-operative societies, as the case may be, shall adopt such standards of auditing and accounting as may be determined by the Central Government:

74 · Signature of audit report , etc . — Only the person appointed as an auditor of the multi-State co-operative society shall sign the auditor's report, or sign or authenticate any other document of the multi -State co -operative society required by law to be signed or authenticated by the auditor.

75 · Reading and inspection of auditor's report . — The auditor's report shall be read before the multi -State co -operative society in the general meeting and shall be open to inspection by any member of the multi -State co -operative society.

76 · Right of auditor to attend general meeting . — All notices of, and other communications relating to, any general meeting of a multi-State co-operative society, which any member of the multi-State co-operative society is entitled to have sent to him, shall also be forwarded to the auditor of the multiState co -operative society; and the auditor shall be entitled to attend any general meeting and to be heard at any general meeting which he attends on any part of the business which concerns him as auditor.

1 · Ins. by Act 11 of 2023, s. 29 (w.e.f. 3-8-2023).

77 · Power of Central Government to direct special audit in certain cases . — (1) Where the Central Government is of the opinion—

78 · Inquiry by Central Registrar . — (1) The Central Registrar may, on a request from a federal co-operative to which a multi-State co-operative society is affiliated or a creditor or not less than one-third of the members of the board or not less than one -fifth of the total number of members of a multi -State co -operative society hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a multi -State co -operative society:

1 · [(1A) If the Central Registrar is satisfied on the basis of information available with him or furnished to him by a Government agency, that the business of a multi-State co-operative society is being carried on for a fraudulent or unlawful purpose, he may, after informing the multi-State co-operative society of the allegations made against it, by a written order, call on the multi-State co-operative society to furnish in writing any information or explanation, with the endorsement of the board of the society, on matters contained in such order within the time specified therein:

79 · Inspection of multi-State co-operative societies . — (1) The Central Registrar may, on a request from a federal co -operative to which a multi-State co-operative society is affiliated or a creditor or not less than one -third of the members of the board or not less than one -fifth of the total number of members of a multi -State co -operative society by general or special order in writing in this behalf, inspect-or direct any person authorised by him by order in writing in this behalf to make an inspection into the constitution, working and financial condition of a multi-State co-operative society:

1 · Ins. by Act 11 of 2023, s. 30 (w.e.f. 3-8-2023).

80 · Inspection of books of indebted multi-State co-operative societies . — (1) The Central Registrar shall, on the application of a creditor of a multi-State co-operative society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the books of the society:

81 · Costs of inquiry and inspection . — Where an inquiry is held under section 78 or an inspection is made under section 79, the Central Registrar may apportion the costs, or such part of the costs, as he may think fit, between the multi -State co -operative society, the members or creditors demanding an inquiry or inspection, and the officers or former officers and the members or past members of that society:

82 · Recovery of costs . —A —Any sum awarded by way of costs under section 81 may be recovered, on application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself.

83 · Repayment, etc . — (1) If in the course of an audit, inquiry, inspection or the winding up of a multi -State co -operative society, it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Central Registrar may, of his own motion or on the application of the board, liquidator or any creditor inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person within a period of two years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as the case may be:

84 · Reference of disputes . — (1) Notwithstanding anything contained in any other law for the time being in force, if any dispute [other than a dispute regarding disciplinary action taken by a multi-State co-operative society against its paid employee or an industrial dispute as defined in clause (k) of section 2

85 · Limitation . — (1) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963) , but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to arbitration shall,—

1 · [CHAPTER IXA

2 · [85A. Co-operative Ombudsman.— (1) The Central Government shall appoint, one or more Cooperative Ombudsman with territorial jurisdiction for inquiring into the complaints made by any member of the multi -State co -operative societies regarding their deposits, equitable benefits of society's functioning or any other issue affecting the individual rights of the concerned member, in such manner, as may be prescribed.

86 · Winding up of multi-State co-operative societies . — (1) If the Central Registrar, after audit has been conducted under section 70 or special audit has been conducted under section 77 or an inquiry has been held under section 78 or an inspection has been made under section 79, 3 [or section 108] is of opinion that the society ought to be wound up, he may, after giving the society a reasonable opportunity of making its representations by order, direct it to be wound up.

4 · [(a) where the number of members or the number of societies or the number of persons, as the case may be, has at any time reduced below the number of members or societies or persons as specified in sub-section (2) of section 6:

1 · Ins. by Act 11 of 2023, s. 30 (w.e.f. 3-8-2023).

2 · Ins. by s. 31 , ibid. (w.e.f. 3-8-2023).

3 · Ins. by s. 32 , ibid. (w.e.f. 3-8-2023).

4 · Subs. by s. 32 , ibid ., for cl . (a) (w.e.f. 3-8-2023).

5 · Subs. by s. 32 , ibid., for "co -operative principles." (w.e.f. 3-8-2023).

1 · [(c) where the Central Registrar has reasons to believe that the registration was obtained by misrepresentation of facts, submission of false or misleading information, suppression of material facts or fraud thereby compromising the spirit of co-operation.]

2 · [(5) Notwithstanding anything contained in this section, in case of winding up of multi-State co-operative banks, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply.]

1 · [Provided that prior to winding up, "no objection" from the institutional lenders, who have outstanding loans from the society, shall be required in writing.

87 · Winding up of co-operative bank at the direction of Reserve Bank . —N —Notwithstanding anything to the contrary contained elsewhere in this Act, the Central Registrar shall make an order for the winding up of a co-operative bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961).

88 · Reimbursement to the Deposit Insurance Corporation by liquidator . —W —Where a co -operative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), is wound up and the Deposit Insurance Corporation has become liable to the depositors of the insured bank under sub-section (1) of section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that Act.

89 · Liquidator . — (1) Where the Central Registrar has made an order under section 86 for the winding up of a multi-State co-operative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration.

90 · Powers of liquidator . — (1) Subject to any rules made in this behalf, the whole of the assets of a multi -State co -operative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 89 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.

1 · Ins. by Act 11 of 2023, s. 32 (w.e.f. 3-8-2023).

2 · Subs. by s. 32 , ibid. , for sub -section (5) (w.e.f. 3-8-2023).

91 · Disposal of surplus assets . — The surplus assets, as shown in the report of a liquidator of a multi -State co -operative society which is wound up , —

92 · Priority of contributions assessed by liquidator . —N —Notwithstanding anything contained in any law relating to insolvency, the contribution assessed by a liquidator shall rank next to debts due to the Central Government or a State Government or a local authority in accordance with the order of priority in insolvency proceedings.

93 · Power of Central Registrar to cancel registration of a multi-State co-operative society . — (1) The Central Registrar may, after considering the report of the liquidator made to him under sub -section (3) of section 90, order the registration of the multi-State co-operative society to be cancelled and on such cancellation, that society shall stand dissolved.

94 · Execution of decisions, etc . — Every decision or order made under section 39 or section 40 or section 83 or 1 [section 84 or] section 99 or section 101 shall, if not carried out,—

95 · Execution of orders of liquidators . — Every order made by the liquidator under section 90 shall be executed according to the law for the time being in force for the recovery of arrears of land revenue.

96 · Attachment before award . — (1) Where the arbitrator is satisfied that a party to any reference made to him under section 84 with intent to defeat or delay the execution of any decision that may be passed thereon is about to—

97 · Central Registrar or arbitrator or person authorised to be civil court for certain purposes. — The Central Registrar or the arbitrator or any person authorised by him in writing in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963 (36 of 1963).

98 · Recovery of sums due to Government . — (1) All sums due from a multi-State co-operative society, or from an officer or member or past member of a multi-State co-operative society, to the Central Government or a State Government, including any cost awarded to the Central Government or the State

1 · Ins. by Act 11 of 2023, s. 33 (w.e.f. 3-8-2023).

1 · [(3) The Central Registrar shall also have the power to recover the following dues by attaching bank accounts of defaulting multi-State co-operative societies—

2 · [98A. Review of decision.— The Central Registrar may, on an application received from any party, review his decision under clause (a) or clause (b) or clause (c) of sub-section (1) of section 94:

99 · Appeals . — (1) Subject to the provisions of section 100, an appeal shall lie under this section against—

1 · Ins. by Act 11 of 2023, s. 34 (w.e.f. 3-8-2023).

2 · Ins. by s. 34 , ibid . (w.e.f. 3-8-2023).

100 · No appeal in certain cases . —N —Notwithstanding anything contained in this Act, where, with the previous sanction in writing of, or on requisition by, the Reserve Bank, a co-operative bank—

101 · Review . — (1) The appellate authority referred to in section 99, may, on the application of any party, review its own order in any case and pass in reference thereto such order as it thinks fit:

102 · Interlocutory orders . — Where an appeal is made under section 99, the appellate authority may , in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay pending the decision of the appeal as such authority may deem fit.

103 · Co -operative societies functioning immediately before reorganisation of States . — (1) Where, by virtue of the provisions of Part II of the State Reorganisation Act, 1956 (37 of 1956) or any other enactment relating to reorganisation of States, any co-operative society which immediately before the day on which the reorganisation takes place, had its objects confined to one State becomes, as from that day, a multi -State co -operative society, it shall be deemed to be a multi-State co-operative society registered under the corresponding provisions of this Act and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, continue to be in force until altered or rescinded.

1 · [Provided that where all the successor States take necessary steps to divide or reorganise such deemed multi -State co -operative society into State co-operative societies in order to confine their objects, services and the members to respective States within a period of three years, such deemed multi-State cooperative society shall cease to be a multi-State co-operative society:

1 · Ins. by Act 11 of 2023, s. 36 (w.e.f. 3-8-2023).

104 · Offences and penalties . — (1) A multi-State co-operative society or an officer or member thereof wilfully making a false return or furnishing false information, 1 [or failing to file any return or information] or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act, or wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which shall not be less than 2 [five thousand rupees] and which may extend to 3 [one lakh rupees] .

1 · Ins. by Act 11 of 2023, s. 37 (w.e.f. 3-8-2023).

2 · Subs. by s. 37, ibid ., for " two thousand rupees " (w.e.f. 3-8-2023).

3 · Subs. by s. 37 , ibid ., for " ten thousand rupees " (w.e.f. 3-8-2023).

4 · Subs. by s. 37, ibid ., for "five thousand rupees" (w.e.f. 3-8-2023).

5 · Ins. by s. 37 , ibid. (w.e.f. 3-8-2023).

6 · Subs. by s. 37, ibid., for “two thousand rupees” (w.e.f. 3-8-2023).

2 · [(5) Where a multi-State co-operative society,—

1 · Subs. by Act 11 of 2023, s. 37, for "five thousand rupees " (w.e.f. 3-8-2023).

2 · Ins. by s. 37, ibid. (w.e.f. 3-8-2023).

109 · Annual accounts and balance -sheet . —A —At every annual general meeting of a multi-State co-operative society, the board shall lay before the multi-State co-operative society—

110 · Minutes of proceedings of general meetings and of board and other meetings . — (1) Every multi -State co -operative society shall cause minutes of all proceedings of every general meeting and of all proceedings of every meeting of its board or of every committee of the board, to be kept by making within thirty days of the conclusion of every such meeting concerned, entries thereof in books kept for that purpose with their pages consecutively numbered.

1 · Subs. by Act 11 of 2023, s. 41, for “co-operative year” (w.e.f. 3-8-2023).

111 · Minutes to be evidence . —M —Minutes of meetings kept in accordance with the provisions of section 110 shall be evidence of the proceedings recorded therein.

112 · Presumptions to be drawn where minutes duly drawn and signed . —W —Where minutes of the proceedings of any general meeting of the multi-State co-operative society or of any meeting of its board or a committee of the board have been kept in accordance with the provisions of section 110 , then, until the contrary is proved, the meeting shall be deemed to have been duly called and held, and all proceedings thereat to have duly taken place, and in particular, all appointments of directors or liquidators made at the meeting shall be deemed to be valid.

113 · Inspection of minutes book of general meetings . — The books containing the minutes of the proceedings of any general meeting of a multi-State co-operative society shall—

114 · Liquidator to be public servant . —A —Any person appointed as liquidator under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

115 · Notice necessary in suits . —N —No suit shall be instituted against a multi-State co-operative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.

116 · 1 [Power to amend Schedules . ]—(1) If the Central Government is satisfied that any multi -State co -operative society should be designated as a national co-operative society or any national co-operative society specified in the Second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so at to include therein such multi-State co-operative society or exclude therefrom such national co -operative society, and thereupon the said Schedule shall be deemed to have been amended accordingly.

2 · [(1A) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the First Schedule and the Third Schedule and thereupon such Schedules shall be deemed to have been amended accordingly:

1 · Subs. by Act 11 of 2023, s. 42 for marginal heading (w.e.f. 3-8-2023).

2 · Ins. by s. 42 ibid. (w.e.f. 3-8-2023).

117 · Bar of jurisdiction of courts . — (1) Save as otherwise provided in this Act, no court shall have jurisdiction in respect of—

118 · Indemnity . —N —No suit, prosecution or other legal proceedings shall lie against the Central Registrar or, any person subordinate to him or acting on his authority or against any other person, in respect of anything in good faith done or purporting to have been done under this Act.

119 · Opening of branches . —N —Notwithstanding anything contained to the contrary in any law relating to co -operative societies in force in a State, a multi-State co-operative society, not being a co-operative bank, may open branches or places of business in any place in India.

120 · Filing of returns . — Every year within six months of the closure of the accounting year every multi -State co -operative society shall file the following returns with the Central Registrar, namely:—

2 · [(a) annual report of the activities including details of board decisions which were not unanimous;]

3 · [(f) disclosure regarding employees who are relatives of Members of board;

4 · [120A. Filing of applications, documents, inspections, etc., in electronic form.—(1) Notwithstanding anything to the contrary contained in this Act, and without prejudice to the provisions of the Information Technology Act, 2000 (21 of 2000), the Central Government may, from such date as may be notified, require that—

1 · Subs. by Act 11 of 2023, s. 42, for “sub-section (1)” (w.e.f. 3-8-2023).

2 · Subs. by s. 43, ibid . , for cl . (a) (w.e.f. 3-8-2023).

3 · Subs. by s. 43, ibid., for cl . (f) (w.e.f. 3-8-2023).

4 · Ins. by s. 44 , ibid. (w.e.f. 3-8-2023).

120B · Application of Banking Regulation Act, 1949 . — The provisions of this Act shall apply to a multi -State co -operative society in respect of matters relating to incorporation, regulation and winding up:

121 · Certain Acts not to apply . — (1) The provisions of 1 [the Companies Act, 2013 (18 of 2013)] and d 1 [the Competition Act, 2002 (12 of 2003)] shall not apply to the multi-State co-operative societies .

122 · Central Government's power to give directions to specified multi-State co-operative societies in public interest . — If the Central Government is satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of the business of the specified multi-State co-operative societies generally or for preventing the affairs of such society being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of specified multi-State co-operative societies generally or to any specified multi-State co-operative society or societies in particular, the Central Government may issue directions to it or to them, from time to time, and all such specified multi -State co -operative society or the societies concerned, as the case may be, shall be bound to comply with such directions.

123 · Supersession of board of specified multi-State co-operative society . — (1) If in the opinion of the Central Government, the board of any specified multi-State co-operative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or

1 · Sub. by Act 11 of 2023, s. 45, for " the Companies Act, 1956 " and " the Monopoly and Restrictive Trade Practices Act, 1969 " (w.e.f. 3-8-2023).

2 · [Provided that while taking a decision for supersession or suspension on grounds of failure to conduct election, such action shall only be taken if the Board had not given requisition to hold election to the Co -operative Election Authority within the time limit or not extended necessary assistance as per the provisions of section 45.]

3 · [Explanation.—For the purposes of section 122 and this section, the expression "specified multiState co -operative society" means any multi-State co-operative society where there is Government shareholding or loan or financial assistance or any guarantee by the Government.]

124 · Power to make rules . — (1) The Central Government may, by notification, make rules to carry out the provisions of this Act.

4 · [(aa) the guidelines under sub-section (2) of section 7;]

1 · Subs. by Act 11 of 2023 , s. 46, for the portion beginning with " or has committed any act " and ending with " the aggregate period does not exceed one year " (w.e.f. 3-8-2023).

2 · Subs. by s. 46, ibid . , for proviso (w.e.f. 3-8-2023).

3 · Subs. by s. 46, ibid., for the Explanation (w.e.f. 3-8-2023).

4 · Ins. by s. 47 , ibid. (w.e.f. 3-8-2023).

1 · [(ja) the manner in which the board of a multi-State co-operative society shall provide information, documents, personnel, funds or expenses or any other assistance as sought by the Co -operative Election Authority for conducting elections under clause (a) of sub-section (2) of section 43;]

2 · [(k) the composition of the Selection Committee for appointment of Chairperson, Vice -Chairperson and Members of the Co-operative Election Authority under sub-section (1) of section 45

3 · [(ma) the procedure for recruitment of employees under proviso to clause (e) of sub-section (2) of section 49;]

1 · Ins. by Act 11 of 2023, s. 47 (w.e.f. 3-8-2023).

2 · Subs. by s. 47, ibid., for Cl . (k) (w.e.f. 3-8-2023).

3 · Ins. by s. 47 , ibid. (w.e.f. 3-8-2023).

2 · [(qa) the manner of maintenance of fund under clause (b) of sub-section (1) of section 63;]

2 · [(sa) the manner of appointment of Co-operative Ombudsman and submission of complaints to such Ombudsman under sub -section (1) of section 85A;

2 · [(wa) the manner of recovery and deposit of proceeds of unlawful gains under sub-section (6) of section 104;

2 · [(xa) the manner of powers being exercised by the Central Government in respect of matters relating to filing of applications, documents, inspections and the like in electronic form under sub -section (1) of section 120A;

3 · [(3) Every rule made under this section and any notification issued under section 116 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the rules and any notification issued under section 116 should not be made, the rule and any notification issued under section 116 shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule and any notification issued under section 116.]

1 · Cl . (o) omitted by Act 11 of 2023 , s. 47 (w.e.f. 3-8-2023).

2 · Ins. by s. 47 , ibid . (w.e.f. 3-8-2023).

3 · Subs. by s. 47, ibid ., for sub -section (3) (w.e.f. 3-8-2023).

125 · Power to remove difficulties . — (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:

1 · [(1A) Notwithstanding anything contained in sub-section (1), if any difficulty arises in giving effect to the provisions of this Act as amended by the Multi-State Co-operative Societies (Amendment) Act, 2023, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty:

126 · Repeal and saving . — (1) The Multi-State Co-operative Societies Act, 1984 (51 of 1984) is hereby repealed.

1 · Ins. by Act 11 of 2023, s. 48 (w.e.f. 3-8-2023).

1 · Voluntary and Open Membership . — Co -operatives are voluntary organisations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on bases of gender, social inequality, racial, political ideologies or religious consideration.

2 · Democratic Member Control . — Co -operatives are democratic organisations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these co -operatives are responsible and accountable to their members.

3 · Member's Economic Participation . —M —Members contribute equitably and control the capital of their Co -operative democratically. At least a part of the surplus arising out of the economic results would be the common property of the co-operatives. The remaining surplus could be utilised benefiting the members in proportion to their share in the Co-operative .

4 · Autonomy and Independence . — Co -operatives are autonomous, self-help organisations controlled by their members. If co-operatives enter into agreement with other organisations including Government or raise capital from external sources, they do so on terms that ensure their democratic control by members and maintenance of Co-operative autonomy.

5 · Education, Training and Information . — Co -operatives provide education and training to their members, elected representatives and employees so that they can contribute effectively to the development of their Co-operatives. They also make the general public, particularly young people and leaders aware of the nature and benefits of co -operation.

6 · Co -operation among Co-operatives . — Co -operatives serve their members most effectively and strengthen the co-operative movement, by working together through available local, regional, national and international structures.

7 · Concern for Community . — While focusing on the needs of their members, co-operatives work for the sustainable development of communities through policies accepted by their members.

1 · [1. National Co-operative Agricultural Development Banks Federation Limited, Mumbai . ]

2 · [7 . ] National Co-operative Housing Federation Limited, New Delhi .

3 · [8 . ] Indian Farmer's Fertiliser Co-operative Limited, New Delhi .

4 · [9 . ] All India Federation of Co-operative Spinning Mills Limited, Mumbai .

5 · [10 . ] National Co-operative Dairy Federation of India Limited, Anand . ]

6 · [11 . ] All India Handloom Fabrics Marketing Co-operative Society Limited, New Delhi .

7 · [12 . ] National Federation of Urban Co-operative Banks and Credit Societies Limited, New Delhi .

8 · [13 . ] Krishak Bharati Co-operative Limited, New Delhi .

9 · [14 . ] National Federation of Fishermen's Co-operative Limited, New Delhi .

10 · [15 . National Labour Cooperative Federation of India Limited, New Delhi . ]

11 · [16 . ] Tribal Co-operative Marketing Development Federation of India Limited, New Delhi .

12 · [ 13 [17 . ] National Cooperative Organics Limited, Anand, Gujarat.

14 · [18 . ] Bharatiya Beej Sahakari Samiti Limited, New Delhi.

15 · [19 . ] National Cooperative Exports Limited, New Delhi.]]

16 · [20. Cooperative Bank of India Limited, New Delhi.]

1 · Subs. vide notification S.O. No. 3003(E), dated 2nd July, 2025, see Gazette of India, Extraordinary, Part II, s. 3(ii) .

2 · Serial number 8 renumbered as ‘7’ ibid.

3 · Serial number 9 renumbered as ‘8’ ibid.

4 · Serial number 10 renumbered as '9 ' ibid.

5 · Serial number 12 renumbered as ‘10’ ibid.

6 · Serial number 15 renumbered as ‘11’ ibid.

7 · Serial number 16 renumbered as ‘12’ ibid.

8 · Serial number 17 renumbered as ‘13’ ibid.

9 · Serial number 18 renumbered as ‘14’ ibid.

10 · Subs. ibid, d, for serial number 19 .

11 · Serial number 21 renumbered as ‘16’ ibid.

12 · Ins. vide notification S.O. No. 1396(E), dated 21st March, 2023, see Gazette of India, Extraordinary, Part II, s. 3(ii).

13 · . Serial number 22 renumbered as '17' vide notification S.O. No. 3003(E), dated 2nd July, 2025, see Gazette of India, Extraordinary, Part II, s. 3(ii).

14 · Serial number 23 renumbered as '18 ' ibid.

15 · . Serial number 24 renumbered as '19 ' ibid.

1 · [THE THIRD SCHEDULE

1 · Ins. by Act 11 of 2023, s. 49 (w.e.f. 3-8-2023).

2 · Since 1942, far -reaching changes have occurred in the organisational structure, overall size and operations, etc., of multi-unit co-operative societies. A number of national level co-operative societies and federations, promoted by co-operatives in the country have come up with the assistance of the Central and State Governments. These federations and societies are engaged in diverse spheres of co-operative activity. The provisions in the co-operative laws in different States governing these multi-State societies tend to vary from one another. Thus the lack of uniformity and the inadequacies in the existing arrangements have rendered it necessary to replace the existing legislative framework of such co-operatives by a common comprehensive Central legislation and providing for a Central Authority to be responsible for their promotion, registration and supervision. The present Multi-State Cooperative Societies Bill, framed in the light of the recommendations of the Expert Commitee on Multi-State Co-operative Societies Legislation and in consultation with the State Governments, seeks to achieve this objective and is intended to facilitate the further development and more effective functioning of multi-State co-operative societies.

3 · The proposed law will extend to the whole of India including Jammu and Kashmir. The present Multi-Unit Co-operative Societies Act, 1942 does not extend to Jammu and Kashmir,

4 · The scope of the Bill is divided into several parts on the usual lines of co-operative legislation in the States providing, among other things, for the appointment of Central Registrar, registration of multi -State co -operative societies, members' rights and liabilities, management of co-operatives, privileges of multi-State co-operatives, their properties and funds, audit, inquiry, inspection, settlement of disputes, winding up and cancellation of registration of multi-State co-operative societies etc.

5 · Some of the provisions contained in the State co-operative laws and which have been 'irritants' to non -official leadership of the cо-operative movement have not been inducted in the Bill. The Bill does not contain any provision for compulsory amendment of bve-laws or for compulsory amalgamation or division of societies. Nor does the proposed Bill contemplate any powers to Government nominees to veto the resolution of board of management of societies. The objective is that while the autonomy of the co-operative should be supported and respected, the administrative arrangements for inspection, monitoring and audit of these societies are strengthened to ensure that the societies function with responsibility to their constituents and the community.

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The Multi -State Cooperative Societies Rules, 2002

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EXTRAORDINARY W11 11—73303 3—31—6173 (i) PART II-Sccfion 3—Sub-seclion (i) W1': vanfinfi PUBLISHED BY AUTHORITY

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The General Manager Government ofIndia Press Mayapuri, Ring Road New Delhi.

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{IR} Ho gto Vao-33004/99

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MLVISTRY OF AGRICULTURE AVD FARMERS WELFARE

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Ministry of Agriculture and Farmers Welfare

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Procedure for Conduct of Elections

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MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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The Multi-State Cooperative Societies Act, 2002

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Ministry of Agriculture and Farmers Welfare (Department of Agriculture, Co-operation and Farmers Welfare)

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No.R-11017/83/2016-L&M

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(To be published in Part-II, Sub-section (ii) of Section 3 of the Gazette of India)

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REGD NO.DL.33004/99 trz%o_3to_Yo-33004/99 377 84r7 rr& 758 2t fnt 47 770& Ce tattt 77 TeeTZT TT HrTT #4 7, #Ram JRa XES Zht of Jndia Che Gaz

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Procedure for Conduct of Elections

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No.R-11017/83/2016-L&M Goverment of India

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The Multi-State Cooperative Societies Act, 2002

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REGD. NO. D. L-33004/99

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The Multi-State Cooperative Societies Rules; 2002

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F.No. L-l 1012/1/2018-L&M

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