As many as 1.41 lakh cooperative societies out of the 8.53 lakh societies registered across the country are non-functional, while another 49,177 societies are under liquidation, highlighting the continuing challenges of financial irregularities, weak management and delayed audits in parts of the cooperative sector.
According to data from the National Cooperative Database (NCD), 6.63 lakh cooperative societies are currently functional. Of these, 5.95 lakh have been audited, while around 68,020 societies remain unaudited. The data, maintained on the NCD portal as on July 15, 2026, was provided by Union Home Minister and Minister of Cooperation Amit Shah in a written reply in the Lok Sabha.
The audit position varies significantly across states. Maharashtra has the largest cooperative network, with 2,19,775 functional societies, of which 2,11,329 have been audited and 8,446 remain unaudited. Gujarat has 79,823 functional societies, including 73,340 audited and 6,483 unaudited societies. Telangana has 46,672 functional societies, with 43,478 audited, while Karnataka has 40,440 functional societies, of which 37,732 have been audited.
Madhya Pradesh has 27,041 functional societies, including 25,479 audited, while Rajasthan has 27,172 functional societies, of which 23,497 have undergone audit. Uttar Pradesh has 22,888 functional societies, with 15,528 audited and 7,360 unaudited. West Bengal has 23,028 functional societies, including 16,977 audited and 6,051 unaudited.
Among other major states, Bihar has 22,243 functional societies, of which 19,896 are audited; Tamil Nadu has 21,090 functional societies, with 19,384 audited; Haryana has 15,447 functional societies, including 13,228 audited; Kerala has 15,106, of which 14,624 are audited; Punjab has 12,666, with 11,715 audited; and Andhra Pradesh has 12,408 functional societies, including 11,970 audited.
Some states have relatively high numbers of unaudited functional societies. Jammu and Kashmir has 5,138 unaudited societies out of 9,132 functional societies, while Odisha has 3,198 unaudited out of 8,063. Assam has 2,957 unaudited societies against 8,071 functional societies, and Uttar Pradesh and West Bengal have 7,360 and 6,051 unaudited societies respectively.
The government said details of cooperative societies lying dormant because of financial irregularities, weak management or lack of timely audits are maintained by the respective State and Union Territory governments.
The position is also significant among Multi-State Cooperative Societies (MSCS), which function as autonomous organisations under the Multi-State Cooperative Societies Act, 2002 and remain accountable to their members.
Where irregularities, including financial embezzlement, are detected, winding-up proceedings can be initiated under Section 86 of the Act. A liquidator is appointed under Section 89 to liquidate the society’s assets and facilitate payment to investors and members in accordance with Section 90.
So far, 115 Multi-State Cooperative Societies have been placed under liquidation. Rajasthan accounts for the highest number at 26, followed by Maharashtra with 23, Delhi with 16, Uttar Pradesh with 14 and Odisha with 12. West Bengal has six such societies, Gujarat four, Tamil Nadu three, Andhra Pradesh and Telangana two each, while Bihar, Chandigarh, Goa, Jharkhand, Karnataka, Punjab and DNH & DD have one each.
The Ministry of Cooperation, established on July 6, 2021, has taken several measures under the vision of “Sahakar se Samriddhi” to strengthen transparency, accountability and protection of members’ interests.
The MSCS Act was amended in 2023 to improve governance, transparency, accountability and the electoral process. The amendment also created a Cooperative Rehabilitation, Reconstruction and Development Fund to help revive sick Multi-State Cooperative Societies and support their infrastructure needs.
The government has also circulated Model Bye-laws for Primary Agricultural Credit Societies (PACS), enabling them to diversify into activities such as storage, processing, LPG distribution and Common Service Centres while improving governance and member-centric operations.
The PACS computerisation programme is bringing functional PACS onto a common ERP-based national software platform to improve transparency, efficiency, record management and service delivery.
Capacity-building is another focus area, with the National Council for Cooperative Training conducting programmes for cooperative members, boards of directors, employees, state officials and aspiring youth through its network of 20 training institutes.
The National Cooperative Database itself has emerged as a comprehensive digital repository covering 8.53 lakh cooperative societies and around 32 crore members. The government has also brought Rural Cooperative Banks under the RBI Integrated Ombudsman Scheme to strengthen transparency and accountability in the sector.
