class="MsoNormal" style="text-align: justify;">The Ministry of Law and Justice (MoLJ) on July 31, 2026, introduced various reforms through Multi-State Cooperative Societies (MSCS) (Amendment) Act & Rules, 2023.
Multi-State Cooperative Societies (MSCS) registered under the MSCS Act, 2002 operate as autonomous bodies accountable to their members. The Act provides a comprehensive legal framework covering inquiry, inspection, winding up, appointment of liquidators, and provisions for offences and penalties. In cases involving cognizable offences such as fraud, cheating, or criminal breach of trust, matters are referred to appropriate investigating agencies like State Police, Economic Offences Wing (EOW), or Central Bureau of Investigation (CBI) for further action.
Recovery of assets and settlement of dues of societies under liquidation are handled by the appointed Liquidator as per the Act and applicable rules, while criminal investigations and prosecutions are undertaken by competent authorities and courts. The Office of the Central Registrar supports these processes by providing necessary documents and records to investigating agencies and judicial bodies.
To enhance depositor and member protection, the MSCS (Amendment) Act and Rules, 2023 introduced several reforms. These include the appointment of a Co-operative Ombudsman for grievance redressal and Information Officers to ensure transparency. The audit framework has been strengthened through concurrent audits, uniform standards, and parliamentary oversight of apex societies’ audit reports. Governance improvements include stricter disclosure norms, enhanced director accountability, and conflict-of-interest restrictions.
Additionally, prudential norms for societies engaged in thrift and credit activities have been defined to ensure financial stability and safer investments. Regulatory powers of the Central Registrar have been expanded to address fraudulent practices, and provisions have been introduced for winding up societies obtained through misrepresentation. Measures such as increasing the expulsion period of members from one to three years further aim to protect the collective interests and integrity of cooperative societies.
[Release ID: 2292281]
