The Multi-State Cooperative Societies (MSCS) Amendment Act and Rules, 2023, notified in August 2023, have introduced sweeping reforms to strengthen governance, transparency and accountability in multi-State cooperative societies. The amendments, aligned with the Ninety-seventh Constitutional Amendment, aim to curb financial irregularities and deepen democratic functioning.
Key provisions include the creation of a Cooperative Election Authority for timely and transparent elections, appointment of a Cooperative Ombudsman for grievance redressal, mandatory information officers, and stricter prudential norms for thrift and credit societies. Audit reports of apex multi-State cooperatives will now be laid in Parliament, while uniform accounting and auditing standards have been prescribed by the Central Government.
To strengthen audit oversight, concurrent audits have been made mandatory for societies with turnover or deposits exceeding ?500 crore, along with separate panels of auditors for large and small entities. Societies are required to file detailed annual returns online through the CRCS portal, with non-compliance attracting disqualification.
The reforms are complemented by the National Cooperative Database, offering a single-window view of over 8.4 lakh cooperatives nationwide and guiding revival and expansion efforts.
