The Office of the Central Registrar of Cooperative Societies (CRCS) has issued a stern warning to Multi-State Cooperative Societies (MSCSs) over widespread non-compliance in filing Annual Returns for the Financial Year 2024–25, signalling tough action against defaulters. The notice reflects the government’s growing emphasis on transparency, accountability and regulatory discipline in the cooperative sector.
Under Section 120 of the Multi-State Cooperative Societies Act, 2002, as amended in 2023, every MSCS is mandatorily required to submit its Annual Returns on the CRCS online portal within six months from the close of the accounting year. Despite the clear statutory mandate and the availability of a digital filing system, the CRCS has observed that a significant number of societies have failed to comply with this requirement within the prescribed timeline.
The notice clarifies that delays in filing annual returns are not minor procedural lapses but serious statutory violations. Such non-compliance attracts penal action under Sections 104(1) and 104(3) of the Act.
As per these provisions, a defaulting society may be liable to a fine of up to one lakh rupees. In cases of continuing violation after conviction for the first breach, an additional penalty of up to ten thousand rupees per day may be imposed, substantially increasing the financial burden on erring societies.
Apart from financial penalties, the CRCS has highlighted the far-reaching governance implications of continued default. Referring to Section 43(2)(e) of the Act, the notice states that if a multi-state cooperative society fails to file its annual returns within the stipulated time, members of its board of directors will be disqualified from contesting elections to the board for a period of five years. This provision directly links statutory compliance with leadership accountability and reinforces the principle that governance failures carry personal consequences for board members.
Officials note that stricter enforcement is part of ongoing reforms to strengthen oversight of multi-state cooperative societies, many of which operate across several states with large memberships and significant financial exposure.
Timely filing of annual returns allows regulators to assess the financial health, governance standards and operational integrity of cooperative institutions, while also safeguarding the interests of members, depositors and other stakeholders.
In view of these stringent provisions, all MSCSs that have not yet filed their Annual Returns for FY 2024–25 have been directed to submit them immediately through the CRCS portal at www.crcs.gov.in . Societies have also been advised to ensure accuracy and completeness in their disclosures to avoid further regulatory action.
The notice has been issued with the approval of the Central Registrar of Cooperative Societies, conveying a clear message that non-compliance will no longer be tolerated and that statutory discipline is essential for restoring credibility and trust in the multi-state cooperative framework.
