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Act39
Enacted 2002

The Multi-State Co-operative Societies Act, 2002

In force 148 sections Cooperation

An Act to consolidate and amend the law relating to co-operative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of co-operative s as peoples institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy and for matters connected therewith or incidental thereto.

Act 39 of 2002 Enacted 03 Jul 2002 In force 19 Aug 2002

Administered by. Ministry of Cooperation · Other Acts of 2002

Preamble

THE MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002

ACT NO. 39 OF 2002

[3rd July, 2002.] An Act to consolidate and amend the law relating to co-operative societies, with objects not confined to one State and serving the interests of members in more than one State, to facilitate the voluntary formation and democratic functioning of co-operative s as people's institutions based on self-help and mutual aid and to enable them to promote their economic and social betterment and to provide functional autonomy and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:--

What this Act covers

Summary of the Multi-State Co-operative Societies Act, 2002

1. Financial Governance & Protections

• Provision for Provident Fund: Mandatory for employee benefit, funded by employee and society contributions as per bye-laws, ensuring financial security.

• Protection of Provident Fund Assets:

• Exclusion from Society Assets: Separate from the society's business assets.

• Immunity from Legal Processes: Protected against attachment, court processes, or other authorities.

2. Governance & Compliance

• Registration & Bye-Laws Alignment: Societies must register with the Central Registrar, adhering to specified bye-laws.

• Penalties for Non-Compliance:

• Destruction/Falsification of Documents: Imprisonment (1 month to 1 year) and/or fine (₹5,000 to ₹1 lakh).

• Unlawful Investments or Losses: Similar penalties apply for violations of section 64 or causing unlawful losses.

• Personal Gains by Directors/Officers: Penalties include imprisonment and recovery of unlawful gains.

3. Judicial & Procedural Aspects

• Cognizance of Offences: Only Metropolitan Magistrates or Judicial Magistrates of the first class can try offences under this Act.

• Prosecution Procedure: Requires a written complaint from a society member or the Central Registrar.

• Supremacy of Act: Provisions are additional to, not in derogation of, other laws.

Sections

Type to filter. 148 sections.

  1. 1Short title, extent and commencement
  2. 2Application
  3. 3Definitions
  4. 4Central Registrar
  5. 5Multi-State co-operative societies which may be registered
  6. 6Application for registration
  7. 7Registration
  8. 8Registration certificate
  9. 9Multi-State co-operative society to be body corporate
  10. 10Bye-laws of multi-State co-operative societies
  11. 11Amendment of bye-laws of a multi-State co-operative society
  12. 12When amendment of bye-laws comes into force
  13. 13Change of name
  14. 14Address
  15. 15Publication of name by multi-State co-operative society
  16. 16Liability
  17. 17Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative societies
  18. 18Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative bank in certain cases
  19. 19Promotion of subsidiary institution
  20. 20Liability of a co-operative bank to Deposit Insurance and Credit Guarantee Corporation
  21. 21Cancellation of registration certificate of multi-State co-operative societies in certain cases
  22. 22Conversion of a co-operative society into a multi-State co-operative society
  23. 23Registration of federal co-operative
  24. 24Functions of federal co-operative
  25. 25Persons who may become members
  26. 26Nominal or associate member of society
  27. 27Educational course for members
  28. 28Members not to exercise rights till due payment made
  29. 29Disqualification for member of a multi-State co-operative society
  30. 30Expulsion of members
  31. 31Vote of members
  32. 32Manner of exercising vote
  33. 33Restriction on holding of shares
  34. 34Restriction on transfer of shares or interest
  35. 35Redemption of shares
  36. 36Transfer of interest on death of members
  37. 37Liabilities of past member and estate of deceased member
  38. 38Constitution, powers and functions of general body
  39. 39Annual general meeting of general body
  40. 40Special general meeting of general body
  41. 41Board of directors
  42. 42Association of employees in management decision making process
  43. 43Disqualifications for being a member of board
  44. 44Prohibition to hold office of chairperson or president or vice-chairperson or vice-president in certain cases
  45. 45Establishment of Co-operative Election Authority
  46. 45APower of Chairperson
  47. 45BRemoval and suspension of Chairperson, Vice Chairperson and Members
  48. 45CDisclosure and declaration of interest
  49. 45DResignation of Members
  50. 45EFilling of casual vacancy
  51. 45FRestriction of reemployment
  52. 45GVacancies, etc., not to invalidate proceedings of Authority
  53. 45HMeetings of Authority
  54. 45-IFunctions of Authority
  55. 45JElections of members of board
  56. 45KAppointment of Returning Officer and other officers
  57. 45LPower to issue directions
  58. 46Holding of office in co-operative society
  59. 47Removal of elected members by general body
  60. 48Nominee of Central Government or State Government on board
  61. 49Powers and functions of board
  62. 50Meeting of board
  63. 51Chief Executive
  64. 52Powers and functions of Chief Executive
  65. 53Committees of board
  66. 54Securing possession of records, etc
  67. 55Charge and set-off in respect of share or contribution or interest of members
  68. 56Share or contribution or interest not liable to attachment
  69. 57Register of members
  70. 58Admissibility of copy of entry as evidence
  71. 59Exemption from compulsory registration of instruments
  72. 60Deduction from salary to meet multi-State co-operative society’s claim in certain cases
  73. 61Government aid to multi-State co-operative societies
  74. 62Funds not to be divided by way of profit
  75. 63Disposal of net profits
  76. 63AEstablishment of Co-operative Rehabilitation, Reconstruction and Development Fund
  77. 63BRehabilitation and reconstruction of sick societies
  78. 63CFinancial assistance to multi-State co-operative societies for development
  79. 64Investment of funds
  80. 65Restriction on contribution
  81. 66Restriction on loans
  82. 67Restrictions on borrowings
  83. 68Restriction on other transactions with non-members
  84. 69Contributory provident fund
  85. 70Appointment and remuneration of auditors
  86. 70AConcurrent Audit
  87. 71Provision as to resolutions for appointing or removing auditors
  88. 72Qualifications disqualifications of auditors
  89. 73Powers and duties of auditors
  90. 74Signature of audit report, etc
  91. 75Reading and inspection of auditor’s report
  92. 76Right of auditor to attend general meeting
  93. 77Power of Central Government to direct special audit in certain cases
  94. 78Inquiry by Central Registrar
  95. 79Inspection of multi-State co-operative societies
  96. 80Inspection of books of indebted multi-State co-operative societies
  97. 81Costs of inquiry and inspection
  98. 82Recovery of costs
  99. 83Repayment, etc
  100. 84Reference of disputes
  101. 85Limitation
  102. 85ACo-operative Ombudsman
  103. 86Winding up of multi-State co-operative societies
  104. 87Winding up of co-operative bank at the direction of Reserve Bank
  105. 88Reimbursement to the Deposit Insurance Corporation by liquidator
  106. 89Liquidator
  107. 90Powers of liquidator
  108. 91Disposal of surplus assets
  109. 92Priority of contributions assessed by liquidator
  110. 93Power of Central Registrar to cancel registration of a multi-State co-operative society
  111. 94Execution of decisions, etc
  112. 95Execution of orders of liquidators
  113. 96Attachment before award
  114. 97Central Registrar or arbitrator or person authorised to be civil court for certain purposes
  115. 98Recovery of sums due to Government
  116. 98AReview of decision
  117. 99Appeals
  118. 100No appeal in certain cases
  119. 101Review
  120. 102Interlocutory orders
  121. 103Co-operative societies functioning immediately before reorganisation of States
  122. 104Offences and penalties
  123. 105Cognizance of offences
  124. 105AProvisions of this Act not in derogation of any other law
  125. 106Appointment of Co-operative Information Officer
  126. 106ACopy of rules and bye-laws, etc., for inspection
  127. 107Place of keeping and inspection of, registers and returns
  128. 108Inspection of books of account, etc., of multi-State co-operative society
  129. 109Annual accounts and balance-sheet
  130. 110Minutes of proceedings of general meetings and of board and other meetings
  131. 111Minutes to be evidence
  132. 112Presumptions to be drawn where minutes duly drawn and signed
  133. 113Inspection of minutes book of general meetings
  134. 114Liquidator to be public servant
  135. 115Notice necessary in suits
  136. 116Power to amend Schedule
  137. 117Bar of jurisdiction of courts
  138. 118Indemnity
  139. 119Opening of branches
  140. 120Filing of returns
  141. 120AFiling of applications, documents, inspections, etc., in electronic form
  142. 120BApplication of Banking Regulation Act, 1949
  143. 121Certain Acts not to apply
  144. 122Central Government’s power to give directions to specified multi-State co-operative societies in public interest
  145. 123Supersession of board of specified multi-State co-operative society
  146. 124Power to make rules
  147. 125Power to remove difficulties
  148. 126Repeal and saving

Schedules

This Act has 2 schedules. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Amending Acts

1 Act amending this enactment, passed by Parliament of India. The text above is the consolidated text as published.

  • The Multi-State Co-operative Societies (Amendment) Act, 202339 of 2023

Rules made under this Act

10 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • Appointment of Dr. Abhilaksh Likhi, IAS(HY:91) as Central Registrar of Cooperative Societies2018
  • In The MSCS Rules,2002, in rule 25, in sub-rule (3)2018
  • Information/documents required under section 11(4)(g) in addition to Section 11(4) along with the Amendment application2018
  • LATEST AMENDMENT in the MSCS Rules 2002 vide notification2016
  • No objection Certificate from the Registrar of Cooperative Society of the states or the Union Territories2016
  • Obtaining prior approval of Central Registrar for opening of a new branch/es or place/s of business of a multi State cooperative societies2016
  • In the MSCS Rules 2002, in the rule 32, in sub rule (8) in the proviso for the figures2012
  • Rules 19 of MSCS Act : Procedure for Conduct of Elections2007
  • Multi State Cooperative Societies Act, 20022002
  • Multi-State Cooperative Societies Rules 20022002

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 148 sections of this Act has its own page. This page is not a substitute for legal advice.