**Executive Summary**
This document details the winding up of five specific Multi-State Cooperative Societies (MSCSs) following investigations into numerous complaints. The Central Registrar of Cooperative Societies has appointed liquidators to manage the assets and ensure payments to investors within a time-bound manner, as per the MSCS Act, 2002.
**Key Points / Main Content**
* **Legal Framework for MSCSs:**
* MSCSs are autonomous organisations accountable to their members, operating under the MSCS Act, 2002, and their bye-laws.
* The Board of Directors is responsible for business matters, including member admission and deposit acceptance/refunds (Section 49, MSCS Act, 2002).
* Day-to-day management is the responsibility of the Chief Executive (Section 52, MSCS Act, 2002).
* **Winding Up Proceedings:**
* Inspections were conducted on five specific MSCSs in Maharashtra based on received complaints.
* Notices were issued to these societies regarding the initiation of winding up proceedings.
* As satisfactory replies were not received, winding up orders were issued under Section 86 of the MSCS Act, 2002.
* Liquidators have been appointed for these societies under Section 89 of the MSCS Act, 2002.
* **Liquidator's Role:**
* Liquidators are tasked with liquidating the society's assets.
* They must ensure payments to investors/members as per Section 90 of the MSCS Act, 2002.
* Procedures outlined in Rule 28 and 29 of the MSCS Rules, 2002, are to be followed in a time-bound manner.
**Impact Analysis**
**Investors/Members**
* **Impact:** They will receive payments from the liquidation of society assets, ensuring their investments are returned as per the law. The process aims for a time-bound resolution.
* **Action Required:** Await communication and follow the procedures stipulated by the appointed liquidators for claiming their dues.
**The Five Specific MSCSs (Jijau Maa Saheb, Dnyanaradha, Shubh Kalyan, Shri Sairam Urban, Rajasthani)**
* **Impact:** These societies are undergoing a formal winding up process, with their operations ceasing and assets being liquidated.
* **Action Required:** Cooperate with the appointed liquidators and facilitate the winding up process.
**Central Registrar of Cooperative Societies (CRCS)**
* **Impact:** Responsible for overseeing the winding up process, ensuring compliance with the MSCS Act and Rules, and approving liquidator actions.
* **Action Required:** Continue to monitor the liquidation process and ensure timely resolution for the benefit of investors.
**Registrar of Cooperative Societies, Government of Maharashtra**
* **Impact:** Conducted the initial inspection of the societies based on the CRCS's request.
* **Action Required:** Provided inspection reports which formed the basis for further action.
**Union Minister for Home and Cooperation (Shri Amit Shah)**
* **Impact:** Provided the information in a written reply in Lok Sabha, indicating the government's awareness and oversight of these actions.
* **Action Required:** No specific action is required from this stakeholder based on the document's content, other than the dissemination of information.
Key Entities Referenced
Multi-State Cooperative Societies (MSCS) Act, 2002: The primary law governing multi-state cooperative societies in India, outlining their functioning, powers, and business matters.
Central Registrar of Cooperative Societies (CRCS): The regulatory authority responsible for the oversight and business matters of multi-state cooperative societies.
Union Minister for Home and Cooperation Shri Amit Shah: The government official who provided information on the matter in Lok Sabha.
Government of Maharashtra: The state government body that was requested to conduct inspections of specific societies.
Ministry of Cooperation
Multi state cooperative credit societies
Posted On: 10 MAR 2026 4:58PM by PIB Delhi
Cooperative Societies registered under the provisions of the Multi-State Cooperative Societies (MSCS)
Act, 2002 function as autonomous cooperative organisations and are accountable to their members.
MSCSs function as per the provisions of Multi-State Cooperative Societies Act, 2002 and rules framed
there under read with approved bye-laws of the Society which includes the role and powers of the
member, Board, General Body of the Society and Central Registrar of Cooperative Societies (CRCS). As
per the provisions of Section 49 of the MSCS Act, 2002, the business matters such as to admit members,
to accept the deposits and refund to depositors etc., fall under the powers and functions of the board of the
Society and the day to day management of the Society fall under the powers and functions of the Chief
Executive of the Society as per the provisions of Section 52 of the MSCS Act, 2002.
Based on the various complaints received against Jijau Maa Saheb Multi State Cooperative Credit Society
Ltd., Dnyanaradha Multi State Cooperative Credit Society Ltd., Shubh Kalyan Multi State Cooperative
Credit Society Ltd., Shri Sairam Urban Multistate Cooperative Credit Society Ltd., and Rajasthani Multi
State Cooperative Credit Society Ltd., the Central Registrar of Cooperative Societies has requested
Registrar of Cooperative Societies, Government of Maharashtra to conduct the inspection u/s 108 of the
Multi-State Cooperative Societies (MSCS) Act, 2002. Based on Inspection Reports, Notices were sent to
these Societies for seeking objections to initiate winding up process under the provision of MSCS Act,
2002. No satisfactory reply was received from these Societies; therefore, winding up orders u/s 86 of the
MSCS Act, 2002 were passed and liquidators were appointed under section 89 of MSCS Act, 2002 in
these Societies.
The Liquidator has to liquidate the assets of Society and to ensure payment to investors/members under
the powers of the liquidator entrusted to him as per the provisions of Section 90 of the MSCS Act, 2002
and by adopting procedures as per Rule 28 and 29 of the MSCS Rules, 2002 in a time bound manner.
This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written
reply in Lok Sabha.
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AK/AP
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