**Executive Summary**
This document summarizes the Indian government's response to Lok Sabha Starred Question No. 228 regarding strengthening regulatory oversight of cooperative societies. It references the Multi-State Cooperative Societies (MSCS) (Amendment) Act & Rules, 2023, and the establishment of the National Cooperative Database (NCD). The response provides details on amendments made to the MSCS Act, the alignment of the Tribhuvan Sahkari University (TSU) curriculum, and efforts to streamline the audit process of cooperative societies. The document provides the details as of December 16th, 2025.
**Key Points / Main Content**
* **MSCS (Amendment) Act & Rules, 2023:**
* Notified on 03.08.2023 and 04.08.2023 to strengthen governance, transparency, increase accountability, and reform the electoral process.
* Introduces provisions for a Cooperative Election Authority to ensure timely and transparent elections.
* Allows the Central Government to appoint a Co-operative Ombudsman to address grievances.
* Mandates the appointment of an Information Officer to improve transparency.
* Requires the laying of audit reports of Apex multi-State co-operative societies in Parliament to improve transparency.
* The Central Government will determine accounting and auditing standards to ensure uniformity.
* Requires annual reports to include Board decisions which are not unanimous.
* Authorizes the Central Government to determine prudential norms (liquidity, exposure, etc.)
* Restricts Directors from participating in discussions and votes where they or their relatives have a vested interest.
* Introduces additional grounds for disqualification of directors.
* Redefines provisions for Investment of funds to ensure safer investments.
* Mandates the constitution of a Committee for Audit and Ethics.
* Stipulates criteria for the appointment of Chief Executive Officers (CEO).
* Prescribes quorum for board meetings to enhance democratic decision-making.
* Empowers Central Registrar to conduct inquiries into fraudulent business practices.
* Provides for winding up a multi-State cooperative society if registration is obtained by misrepresentation or fraud.
* Increases the minimum expulsion period for members acting against collective interests from 1 to 3 years.
* Restricts institutions with majority equity shares held by members of multi-State co-operative societies or their relatives from being considered a subsidiary institution.
* **Tribhuvan Sahkari University (TSU) Curriculum:**
* Aligns with digital and management needs by integrating advanced, simulation, and real-life case-study-based pedagogy.
* Develops cutting-edge digital competencies for using the latest digital tools and technologies.
* **Strengthening the Audit Process:**
* Introduces Concurrent Audit for Multi-State Cooperative Societies with turnover/deposits exceeding 500 crore rupees.
* Notifies two panels of auditors: one for societies with turnover/deposits up to 500 crore rupees for Statutory Audit, and another for societies exceeding 500 crore rupees for Statutory and Concurrent Audit.
* Central Government will determine accounting and auditing standards for multi-State cooperative societies.
* Requires annual returns to be filed with the Central Registrar via the online CRCS portal.
* Returns must include details of board decisions that were not unanimous.
* **National Cooperative Database (NCD):**
* Developed by the Ministry of Cooperation and launched on 08th March, 2024.
* Provides single-point access to information on over 8.4 lakh cooperatives.
* As of 15.11.2025: 6.56 lakh are functional, 1.39 lakh are non-functional, and 48,537 are under liquidation.
* **Revival and Liquidation Efforts:**
* Proactive measures taken to convert PACS, Dairy, and Fisheries Cooperatives into multi-purpose cooperative societies to enhance business diversification and financial sustainability.
* NCD is used to identify gaps in the geographical spread of cooperatives for the formation of new MPACS.
* Defunct Societies are to be liquidated to form new MPACS wherever possible.
* A Co-operative Rehabilitation, Reconstruction and Development Fund has been set up under section 63A of the MSCS (Amendment) Act, 2023, to revive sick multi-State cooperative societies.
**Impact Analysis**
**Multi-State Cooperative Societies:**
*Impact:* MSCS are subject to stricter regulatory oversight, enhanced transparency, and increased accountability. They must comply with the amendments to the MSCS Act and Rules, including provisions related to elections, information dissemination, audit processes, and board governance.
*Action Required:* MSCS must review and implement the changes required by the amended MSCS Act and Rules, including establishing new committees, updating internal policies, and adhering to new reporting requirements.
**Members of Multi-State Cooperative Societies:**
*Impact:* Members will have access to more information and improved grievance redressal mechanisms. The amendments aim to protect their interests and prevent financial irregularities.
*Action Required:* Members should be aware of their rights and responsibilities under the amended MSCS Act and Rules, including the right to access information and the process for filing grievances.
**Central Registrar of Cooperative Societies:**
*Impact:* The Central Registrar has expanded powers and responsibilities related to the regulation and oversight of MSCS, including conducting inquiries into fraudulent practices and winding up societies.
*Action Required:* The Central Registrar must develop and implement procedures for enforcing the provisions of the amended MSCS Act and Rules, including conducting inquiries and taking action against non-compliant societies.
**Ministry of Cooperation:**
*Impact:* The Ministry is responsible for developing and implementing policies to strengthen the cooperative sector, including the MSCS Act and the National Cooperative Database.
*Action Required:* The Ministry must continue to monitor and evaluate the effectiveness of its policies and initiatives, and make adjustments as necessary to achieve its goals. The annexure lists the state-wise details of cooperative societies.
Key Entities Referenced
Multi-State Cooperative Societies (MSCS) Act: Key legislation governing cooperative societies in India, subject of key amendments discussed in the document.
Ministry of Cooperation: The primary government body responsible for overseeing and regulating cooperative societies.
National Cooperative Database (NCD): A centralized database providing information on cooperative societies across the country.
Tribhuvan Sahkari University (TSU): Newly operationalized university focused on cooperative curriculum aligned with digital and management needs.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
STARRED QUESTION NO. 228
TO BE ANSWERED ON 16th DECEMBER 2025
STRENGTHENING REGULATORY OVERSIGHT OF CO-OPERATIVE SOCIETIES
228: DR. NISHIKANT DUBEY:
DR. VINOD KUMAR BIND:
Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:
(a) the key amendments finalized for the Multi-State Co-operative Societies (MSCS) Act to
strengthen regulatory oversight and monitoring;
(b) the manner in which the newly operationalized Tribhuvan Sahkari University (TSU)
curriculum is aligned with the current digital and management needs of the cooperative
sector;
(c) the mechanisms that are in place to ensure the mandatory audit of all registered
cooperative societies is completed within the stipulated timeline;
(d) the extent to which the establishment of the National Cooperative Database has
streamlined and facilitated the process of identifying and reviving defunct cooperative
bodies; and
(e) the details of the cooperative institutions currently defunct, State-wise?
ANSWER
THE MINISTER OF COOPERATION
सहकारिता मंत्री (SHRI AMIT SHAH)
(a) to (e) A statement is laid on the Table of the House.Statement referred to in reply to parts (a) to (e) in respect of Lok Sabha Starred Question
No. 228 regarding “Strengthening Regulatory Oversight of Co-operative Societies” asked
by Dr. Nishikant Dubey and Dr. Vinod Kumar Bind, Hon’ble Members of Parliament due
for reply on 16th December, 2025
(a) The Multi-State Cooperative Societies (MSCS) (Amendment) Act & Rules, 2023 have been
notified on 03.08.2023 and 04.08.2023, respectively to strengthen governance, enhance
transparency, increase accountability and reform electoral process, etc. in the Multi State
Cooperative Societies by supplementing existing legislation and incorporating the provisions of
Ninety-seventh Constitutional Amendment.
Many provisions have been introduced via the above amendment to strengthen regulatory
oversight and monitoring in the functioning of cooperative societies and prevent financial
irregularities therein, inter-alia: -
i. To ensure timely, regular and transparent conduct of elections in the multi-State
cooperative societies, provision of Cooperative Election Authority has been made.
ii. Appointment of Co-operative Ombudsman by Central Government to provide a
mechanism to address grievances of members.
iii. To improve transparency, appointment of Information Officer by multi-State
cooperative societies to provide information to members.
iv. Audit reports of Apex multi-State co-operative societies to be laid in Parliament to
improve transparency.
v. Accounting and auditing standards for multi-State cooperative societies to be
determined by Central Government to ensure uniformity in accounting and auditing.
vi. To improve governance and transparency, annual report of multi-State cooperative
societies to include Board decisions which are not unanimous.
vii. Central Government to determine prudential norms (liquidity, exposure, etc.) for
multi-State co-operative societies in the business of thrift and credit.
viii. To curb nepotism and favouritism in multi-State co-operative societies, the Director
of a multi-State cooperative society shall not be present in the discussion and vote on
matters where he or his relatives are an interested party.
ix. Additional grounds for disqualification for directors have been made to improve
governance.
x. Provisions for Investment of funds by the multi-State cooperative societies have been
redefined to ensure safer investments and remove references to colonial era securities.
xi. To have more financial discipline and transparency, the board of multi-State co-
operative societies to constitute Committee for Audit and Ethics along with other
committees.
xii. For strengthening governance, criteria for appointment of Chief Executive Officer
(CEO) stipulated.
xiii. To enhance democratic decision making in the multi-State cooperative societies,
quorum has been prescribed for board meetings.xiv. Central Registrar to conduct inquiry if he gets information that business is being
conducted in a fraudulent manner or for unlawful purposes.
xv. If registration obtained by misrepresentation, fraud, etc., provision for winding up of
a multi-State cooperative society after giving opportunity of being heard.
xvi. To discourage members from acting against collective interests of the multi-State co-
operative societies, the minimum period of expulsion of an expelled member of a
multi-State co-operative society has been increased from 1 year to 3 years.
xvii. To prevent only a few members benefitting from resources of the society, Institutions
with majority equity shares held by the members of multi-State co-operative societies
or their relatives, would not be considered as subsidiary institution.
(b) The “Tribhuvan” Sahkari University (TSU) addresses the needs of cooperatives by
integrating advanced, simulation, and real-life case-study-based pedagogy for management
subjects to understand real-life managerial issues and solutions, thereby preparing participants
with real-world strategic decision-making skills. Concurrently, the curriculum also aligns to
develop cutting-edge digital competencies for using the latest digital tools and technologies. This
dual focus ensures that graduates and trainees are equipped with both the managerial acumen and
the digital tools necessary to drive efficiency, innovation, and productivity in their work areas.
(c) The following provisions have specifically been introduced for strengthening the audit
process of Multi-State Cooperative Societies:
i. A provision for Concurrent Audit has been introduced for Multi-State Cooperative
Societies with turnover/deposits of more than 500 crore rupees from a panel of
auditors approved by Central Registrar. Concurrent audit will ensure early detection
of fraud or irregularities, if any, and accordingly prompt course corrections can be
made.
ii. Following two panels of auditors for Multi-State Cooperative Societies have been
notified:
1) Panel of auditors for multi-State cooperative societies having an annual turnover/
deposit (as the case may be) of up to five hundred crore rupees for carrying out
Statutory Audit.
2) Panel of auditors for multi-State cooperative societies having an annual turnover/
deposit (as the case may be) of more than five hundred crore rupees for carrying
out Statutory and Concurrent Audit.
A provision has also been introduced for determination of accounting and auditing standards for
multi-State cooperative societies by Central Government. Further, it has been provided that every
multi-State cooperative society shall file its annual returns with the Central Registrar through the
online CRCS portal under section 120A of the Act, within six months from the close of the
accounting year, containing the following information prescribed under section 120 of the Act:
(a) annual report of the activities including details of board decisions which were not
unanimous;(b) audited statements of accounts;
(c) plan for surplus disposal as approved by the general body;
(d) list of amendments to the bye-laws of the multi-State co-operative society;
(e) declaration regarding date of holding of general body meeting and conduct of elections
where due;
(f) disclosure regarding employees who are relatives of Members of board;
(g) declaration of any related party transactions by the board of directors; and
(h) any other information required by the Central Registrar in pursuance of any of the
provisions of this Act or the rules made there under.
Non-submission of such returns may constitute a ground for disqualification under the provisions
of section 43 of the Act.
(d) A comprehensive National Cooperative Database (NCD) has been developed by Ministry of
Cooperation, Government of India, with the support of States / UTs. The NCD portal was
launched on 08th March, 2024. This database provides a single-point access to information on
over 8.4 lakh cooperatives across the country. As per NCD portal, as of 15.11.2025, out of total
8.45 lakh Cooperative Societies across the country, 6.56lakh are functional, 1.39 lakh are non-
functional and 48,537 are under liquidation.
The Ministry of Cooperation has taken proactive measures to convert Primary Agricultural
Credit Societies (PACS), Dairy, and Fisheries Cooperatives into multi-purpose cooperative
societies. This initiative aims to enhance business diversification, strengthen financial
sustainability, and prevent closures by enabling cooperatives to engage in a wider range of
economic activities. The NCD is used for identification of gaps in the geographical spread of
cooperatives, including both covered and uncovered gram panchayats and formation of 2 lakh
new multipurpose PACS, Dairy and Fishery cooperative societies. Defunct Societies are to be
liquidated to form new MPACS wherever possible.
Additionally, the Ministry of Cooperation has set up Co-operative Rehabilitation,
Reconstruction and Development Fund under section 63A of the Multi-State Cooperative
Societies (MSCS) (Amendment) Act, 2023 for revival of sick multi-State cooperative societies
and providing assistance for meeting infrastructural requirement.
(e) The State-wise details of functional, non-functional and under liquidation societies, is
attached at Annexure-I.
*****Annexure-I
State-wise details of cooperative societies
S. Functional Non-Functional Under-liquidation
No State Name Societies Societies Societies
1 Andaman And Nicobar Islands 1,206 884 148
2 Andhra Pradesh 12,628 4,996 269
3 Arunachal Pradesh 956 480 24
4 Assam 7,723 3,415 1,184
5 Bihar 22,344 4,880 162
6 Chandigarh 196 221 59
7 Chhattisgarh 10,211 1,029 573
8 Delhi 1,939 3,989 16
9 Goa 3,106 2,362 110
10 Gujarat 78,215 6,273 1,210
11 Haryana 14,937 3,089 16,378
12 Himachal Pradesh 4,844 541 282
13 Jammu And Kashmir 8,913 1,662 5
14 Jharkhand 7,912 3,897 188
15 Karnataka 40,231 3,446 3,131
16 Kerala 15,142 3,752 770
17 Ladakh 165 110 -
18 Lakshadweep 31 12 -
19 Madhya Pradesh 27,370 18,423 8,852
20 Maharashtra 2,17,759 3,057 3,907
21 Manipur 5,317 6,019 288
22 Meghalaya 2,949 467 20
23 Mizoram 1,290 175 81
24 Nagaland 2,245 5,860 3
25 Odisha 7,560 500 107
26 Puducherry 431 32 1
27 Punjab 11,933 2,709 5,031
28 Rajasthan 25,491 13,419 3,035
29 Sikkim 1,646 1,869 248
30 Tamil Nadu 21,103 1,200 777
31 Telangana 48,186 12,297 377
The Dadra And Nagar Haveli And
32 Daman And Diu 379 157 33
33 Tripura 2,112 1,007 108
34 Uttar Pradesh 22,724 17,180 775
35 Uttarakhand 4,728 1,465 159
36 West Bengal 22,952 8,949 226
Total 6,56,874 1,39,823 48,537
Source: NCD portal as of 15.11.2025