The Multi-State Co-operative Societies Act, 2002
Administered Ministry: Ministry of Cooperation
Act details
| Short title | The Multi-State Co-operative Societies Act, 2002 |
|---|---|
| Long title | 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 number | 39 of 2002 |
| Act year | 2002 |
| Enactment date | 3 Jul 2002 |
| Ministry | Ministry of Cooperation |
| Jurisdiction | Central (Parliament of India) |
| Sections | 148 |
| Schedules | 2 |
| Status | Not repealed |
| Last checked on India Code | 29 Oct 2026 |
| Source | India Code, Government of India |
Summary
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.
Legislative history
Legislative History:
The Multi-State Co-operative Societies Act, 2002
Act Title The Multi-State Co-operative Societies Act, 2002
Act Number 39 of 2002
Act ID (India Code) 200239
Presidential Assent Date July 3, 2002
Enforcement Date August 19, 2002
Nodal Ministry Ministry of Cooperation
Precedent & Historical Context
1. Evolution of Multi-State Co-operative Laws:
o Multi-Unit Cooperative Societies Act, 1942: The earliest Central enactment to regulate co-operative societies operating across more than one province.
o Multi-State Co-operative Societies Act, 1984: Replaced the 1942 Act to modernize multi-state co-operative structures. However, it contained excessive executive control and bureaucracy, limiting operational autonomy.
2. Choudhary Brahm Perkash Committee Recommendations (1991):
o The Planning Commission appointed an Expert Committee under Choudhary Brahm Perkash to draft a Model Co-operatives Act.
o The Committee recommended removing government interference, autonomous management, democratic functioning, and self-reliance for co-operative societies, forming the basis for replacing the 1984 Act.
Parliamentary Trajectory & Enactment
• November 20, 2000: The Multi-State Co-operative Societies Bill, 2000 was introduced in the Lok Sabha.
• November 2000 – August 2001: Referred to the Department-Related Parliamentary Standing Committee on Agriculture for detailed examination and stakeholder consultations.
• Enactment: Received Presidential Assent on July 3, 2002.
• Enforcement: Enforced on August 19, 2002.
Source: Official Records of Parliament, India Code, and Ministry of Cooperation.