The Cooperative Election Authority (CEA) has directed the National Cooperative Agriculture & Rural Development Bank’s Federation Ltd. (NAFCARD) to amend several provisions of its bye-laws to bring them in line with the amended Multi-State Cooperative Societies (MSCS) Act, 2002 and the Rules framed thereunder.
In a letter, following discussions with NAFCARD officials on June 19, the Authority highlighted multiple governance and compliance issues that need to be addressed well before the federation’s next Board elections, due in March 2028.
CEA noted that NAFCARD, a subscription-based federation with 19 members, must revise its membership provisions as nominal or associate members are not permissible in the absence of authorized share capital.
It also asked the federation to realign provisions relating to disqualification, cessation and termination of membership, and prepare a member list as on September 30, 2026 for publication on its website.
Among other observations, the Authority directed NAFCARD to amend provisions referring to “profit” in the absence of share capital, delete a bye-law relating to conduct of elections by the society itself since elections are to be conducted by the CEA, and clearly specify the number of directors on its Board.
It also asked the federation to delete the provision for four Vice-Chairmen and amend clauses relating to casual vacancies in accordance with Section 45(J) of the MSCS Act.
The CEA further observed that while the MSCS (Amendment) Act, 2023 came into force on August 3, 2023 and societies were expected to align their bye-laws and obtain approval from the Central Registrar by August 3, 2024, NAFCARD’s bye-laws were last amended only on November 25, 2024.
NAFCARD has been asked to submit its response to the Authority’s observations within 30 days. The communication was issued with the approval of the Cooperative Election Authority.
