The Office of the Central Registrar of Cooperative Societies (CRCS) has initiated action against Multi-State Cooperative Societies (MSCSs) that failed to contribute to the Co-operative Education Fund (CEF), issuing notices for pending payments relating to financial years 2022-23, 2023-24 and 2024-25.
The notices, issued by the Ministry of Cooperation on Wednesday, direct profit-making multi-state cooperative societies to immediately remit 1% of their net profits to the CEF, as mandated under Section 63(1)(b) of the Multi-State Cooperative Societies (Amendment) Act, 2023.
According to the CRCS office, scrutiny of annual reports filed on the CRCS portal revealed that several societies earned profits during the relevant financial years but did not make the mandatory contribution to the fund. The regulator has asked these societies to comply without delay.
The development is significant in the context of changes brought about by the 2023 amendment to the MSCS Act. Prior to the amendment, contributions towards cooperative education were routed through and administered by the National Cooperative Union of India (NCUI), the apex cooperative in the country.
However, the amended law transferred the responsibility for maintaining and administering the Co-operative Education Fund to the Central Government through the Ministry of Cooperation, while mandating that every profit-making multi-state cooperative society contribute an amount equivalent to 1% of its annual net profit.
The fund is intended to support cooperative education, training, capacity building and professional development across the cooperative sector, with the objective of strengthening governance and institutional capabilities.
Among the prominent cooperative bodies that have reportedly received notices are the National Labour and Cooperative Federation (NLCF), the National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB), the Bihar State Cooperative Marketing Union (BISCOMAUN) and the National Federation of State Cooperative Banks (NAFSCOB), among others.
The move signals increased regulatory scrutiny by the Ministry of Cooperation to ensure compliance with the amended law and improve funding for cooperative sector training and educational initiatives. It also reflects the regulator’s intent to more closely monitor statutory compliance by multi-state cooperative societies and federations.