Union Home and Cooperation Minister Amit Shah, in a written reply to the Lok Sabha, has outlined a series of measures introduced to strengthen regulatory oversight, governance and financial discipline in Multi-State Cooperative Societies.
The Minister stated that the Central Registrar has been empowered to conduct inquiries if information is received that the business of a multi-State cooperative society is being conducted in a fraudulent manner or for unlawful purposes. He further informed that where registration has been obtained through misrepresentation or fraud, provisions have been made for winding up such societies after giving them an opportunity of being heard.
To discourage members from acting against the collective interests of cooperatives, the minimum period of expulsion of an expelled member has been increased from one year to three years. In another reform aimed at preventing concentration of benefits, institutions in which members of multi-State cooperative societies or their relatives hold majority equity shares will not be treated as subsidiary institutions.
Highlighting audit reforms, Shah said that a Concurrent Audit has been introduced for multi-State cooperative societies with turnover or deposits exceeding Rs 500 crore, to be conducted by auditors from a panel approved by the Central Registrar.
He added that two panels of auditors have been notified, one for societies with turnover or deposits up to Rs 500 crore for statutory audit, and another for societies exceeding this limit for both statutory and concurrent audits. The Central Government has also been empowered to prescribe accounting and auditing standards for multi-State cooperative societies.
Further, every multi-State cooperative society is required to file annual returns online through the CRCS portal within six months of the close of the accounting year, as prescribed under the Act, the Minister said.