Vidhi Codex

The Multi-State Co-operative Societies Act, 2002

The Multi-State Co-operative Societies Act, 2002

Corporate2002148 sections16 chapters

The Multi-State Co-operative Societies Act, 2002, regulates the registration, operational management, annual audits, and dissolution of co-operative societies operating across multiple Indian states. It applies to all multi-state co-operative institutions, including credit societies, national federations, and co-operative banks. This legislation matters because it empowers members through democratic control, self-help, and mutual aid, while ensuring robust government oversight to prevent financial fraud. By establishing a central registrar, an independent election authority, and dispute resolution bodies, the Act protects individual member assets, guarantees fair board elections, and facilitates secure cross-border economic collaboration to promote regional development and broad financial inclusion across India.

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Chapter I PRELIMINARY →

  1. 1Short title, extent and commencement
  2. 2Application
  3. 3Definitions

Chapter II CENTRAL REGISTRAR AND REGISTRATION OF MULTI-STATE CO-OPERATIVE SOCIETIES →

  1. 4Central Registrar
  2. 5Multi-State co-operative societies which may be registered
  3. 6Application for registration
  4. 7Registration
  5. 8Registration certificate
  6. 9Multi-State co-operative society to be body corporate
  7. 10Bye-laws of multi-State co-operative societies
  8. 11Amendment of bye-laws of a multi-State co-operative society
  9. 12When amendment of bye-laws comes into force
  10. 13Change of name
  11. 14Address
  12. 15Publication of name by multi-State co-operative society
  13. 16Liability
  14. 17Amalgamation or transfer of assets and liabilities, or division of multi-State co-operative societies
  15. 18Central Registrar to prepare scheme of amalgamation or reorganisation of a co-operative bank in certain cases
  16. 19Promotion of subsidiary institution
  17. 20Liability of a co-operative bank to deposit insurance and credit guarantee corporation
  18. 21Cancellation of registration certificate of multi-State co-operative societies in certain cases
  19. 22Conversion of a co-operative society into a multi-State co-operative society

Chapter III REGISTRATION AND FUNCTIONS OF FEDERAL CO-OPERATIVES →

  1. 23Registration of federal co-operative
  2. 24Functions of federal co-operative

Chapter IV MEMBERS OF MULTI-STATE CO-OPERATIVE SOCIETIES AND THEIR DUTIES, RIGHTS AND LIABILITIES →

  1. 25Persons who may become members
  2. 26Nominal or associate member of society
  3. 27Educational course for members
  4. 28Members not to exercise rights till due payment made
  5. 29Disqualification for member of a multi-State co-operative society
  6. 30Expulsion of members
  7. 31Vote of members
  8. 32Manner of exercising vote
  9. 33Restriction on holding of shares
  10. 34Restriction on transfer of shares or interest
  11. 35Redemption of shares
  12. 36Transfer of interest on death of members
  13. 37Liabilities of past member and estate of deceased member

Chapter V DIRECTION AND MANAGEMENT OF MULTI-STATE CO-OPERATIVE SOCIETIES →

  1. 38Constitution, powers and functions of general body
  2. 39Annual general meeting of general body
  3. 40Special general meeting of general body
  4. 41Board of directors
  5. 42Association of employees in management decision making process
  6. 43Disqualifications for being a member of board
  7. 44Prohibition to hold office of chairperson or president or vice-chairperson or vice-president in certain cases
  8. 45Establishment of Cooperative Election Authority
  9. 45-IFunctions of Authority.
  10. 45APower of Chairperson
  11. 45BRemoval and suspension of Chairperson, Vice Chairperson and Members
  12. 45CDisclosure and declaration of interest
  13. 45DResignation of Members
  14. 45EFilling of casual vacancy
  15. 45FRestriction of reemployment
  16. 45GVacancies, etc., not to invalidate proceedings of Authority
  17. 45HMeetings of Authority
  18. 45JElections of members of board
  19. 45KAppointment of Returning Officer and other officers
  20. 45LPower to issue directions
  21. 46Holding of office in co-operative society
  22. 47Removal of elected members by general body
  23. 48Nominee of Central Government or State Government on board
  24. 49Powers and functions of board
  25. 50Meeting of board
  26. 51Chief Executive
  27. 52Powers and functions of Chief Executive
  28. 53Committees of board
  29. 54Securing possession of records, etc.

Chapter VI PRIVILEGES OF MULTI-STATE CO-OPERATIVE SOCIETIES →

  1. 55Charge and set-off in respect of share or contribution or interest of members
  2. 56Share of contribution or interest not liable to attachment
  3. 57Register of members
  4. 58Admissibility of copy of entry as evidence
  5. 59Exemption from compulsory registration of instruments
  6. 60Deduction from salary to meet multi-State co-operative society’ s claim in certain cases
  7. 61Government aid to multi-State co-operative societies

Chapter VII PROPERTIES AND FUNDS OF MULTI-STATE CO-OPERATIVE SOCIETIES →

  1. 62Funds not to be divided by way of profit
  2. 63Disposal of net profits
  3. 63AEstablishment of Co-operative Rehabilitation, Reconstruction and Development Fund
  4. 63BRehabilitation and reconstruction of sick societies
  5. 63CFinancial assistance to multi-State co-operative societies for development
  6. 64Investment of funds
  7. 65Restriction on contribution
  8. 66Restriction on loans
  9. 67Restrictions on borrowing
  10. 68Restriction on other transactions with non-members
  11. 69Contributory provident fund

Chapter VIII AUDIT, ENQUIRY, INSPECTION AND SURCHARGE →

  1. 70Appointment and remuneration of auditors
  2. 70AConcurrent Audit
  3. 71Provision as to resolutions for appointing or removing auditors
  4. 72Qualifications and disqualifications of auditors
  5. 73Powers and duties of auditors
  6. 74Signature of audit report, etc.
  7. 75Reading and inspection of auditor’s report
  8. 76Right of auditor to attend general meeting
  9. 77Power of Central Government to direct special audit in certain cases
  10. 78Inquiry by Central Registrar
  11. 79Inspection of multi-State co-operative societies
  12. 80Inspection of books of indebted multi-State co-operative societies
  13. 81Costs of inquiry and inspection
  14. 82Recovery of costs
  15. 83Repayment, etc.

Chapter IX SETTLEMENT OF DISPUTES →

  1. 84Reference of disputes
  2. 85Limitation

Chapter IX REDRESSAL OF COMPLAINTS →

  1. 85ACo-operative Ombudsman

Chapter X WINDING UP OF MULTI-STATE CO-OPERATIVE SOCIETY →

  1. 86Winding up of multi-State co-operative societies
  2. 87Winding up of co-operative bank at the direction of Reserve Bank
  3. 88Reimbursement to the Deposit Insurance Corporation by liquidator
  4. 89Liquidator
  5. 90Powers of liquidator
  6. 91Disposal of surplus assets
  7. 92Priority of contributions assessed by liquidator
  8. 93Power of Central Registrar to cancel registration of a multi-State co-operative society

Chapter XI EXECUTION OF DECREES, ORDERS AND DECISIONS →

  1. 94Execution of decisions, etc.
  2. 95Execution of orders of liquidators
  3. 96Attachment before award
  4. 97Central Registrar or arbitrator or person authorised to be civil court for certain purposes
  5. 98Recovery of sums due to Government
  6. 98AReview of decision

Chapter XII APPEALS AND REVIEW →

  1. 99Appeals
  2. 100No appeal in certain cases
  3. 101Review
  4. 102Interlocutory orders

Chapter XIII SOCIETIES WHICH BECOME MULTI-STATE CO-OPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION OF STATES →

  1. 103Co-operative societies functioning immediately before reorganisation of States

Chapter XIV OFFENCES AND PENALTIES →

  1. 104Offences and penalties
  2. 105Cognizance of offences
  3. 105AProvisions of this Act not in derogation of any other law

Chapter XV MISCELLANEOUS →

  1. 106Appointment of Co-operative Information Officer
  2. 106ACopy of rules and bye-laws, etc., for inspection
  3. 107Place of keeping and inspection of, registers and returns
  4. 108Inspection of books of account, etc., of multi-State co-operative society
  5. 109Annual accounts and balance-sheet
  6. 110Minutes of proceedings of general meetings and of board and other meetings
  7. 111Minutes to be evidence
  8. 112Presumptions to be drawn where minutes duly drawn and signed
  9. 113Inspection of minutes book of general meetings
  10. 114Liquidator to be public servant
  11. 115Notice necessary in suits
  12. 116Power to amend Schedules
  13. 117Bar of jurisdiction of courts
  14. 118Indemnity
  15. 119Opening of branches
  16. 120Filing of returns
  17. 120AFiling of applications, documents, inspections, etc., in electronic form
  18. 120BApplication of Banking Regulation Act, 1949
  19. 121Certain Acts not to apply
  20. 122Central Government’s power to give directions to specified multi-State co-operative societies in public interest
  21. 123Supersession of board of specified multi-State co-operative society
  22. 124Power to make rules
  23. 125Power to remove difficulties
  24. 126Repeal and saving

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