Lok Sabha Question No. 1288 (UNSTARRED), answered on 2024-12-03
Subject: Multi-State Cooperative Societies
Ministry: COOPERATION
Asked by: Shri Murari Lal Meena

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO 1288 TO BE ANSWERED ON 3 rd  DECEMBER, 2024

## MULTI STATE CO-OPERATIVE SOCIETIES

## #1288 SHRI MURARI LAL MEENA:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

(a) whether the Government proposes to formulate any new policy or provisions to improve investigation and action  in  cases  of  fraud  against  Multi-State  Cooperative Societies (MSCS);

(b) whether the Government has prepared a proposal to give additional powers to the States  in  coordination  with  the  Ministry  of  Cooperation  to  establish  more  effective control over the operations of Multi-State Credit Cooperative Societies;

(c) whether the Government has prepared any plans to establish coordination between the Centre and State to protect farmers from fraud by cooperative institutions;

(d)  whether the Government has developed a portal for redressal of grievances of investors in the MSCS; and

(e) if so, whether the Government proposes to auction the properties of the fraudulent societies through this portal and ensure prompt payment to investors?

## ANSWER

## The Minister of COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a)  to  (c):        No  Sir.  Multi-State  Co-operative  Societies  are  registered  under  the provisions  of  the  Multi  State  Cooperative  Societies  Act,  2002,  and  function  as autonomous cooperative organizations accountable to their members.

The  Multi-State  Cooperative  Societies  (MSCS)  (Amendment)  Act  &  Rules, 2023 have been notified on 03.08.2023 and 04.08.2023 respectively to strengthen governance,  enhance  transparency,  increase  accountability  and  reform  electoral process  etc.,  in  the  Multi-State  Cooperative  Societies  by  supplementing  existing legislation and incorporating the provisions of Ninety-seventh Constitutional Amendment. Many provisions have been introduced via above amendment to bring transparency  in  the  functioning  of  cooperative  societies  and  prevent  financial irregularities therein.

Further,  powers  of  Central  Registrar  of  Cooperative  Societies  to  conduct inspection on case to case basis u/s 108 and to appoint an Arbitrator u/s 84 of the MSCS Act, 2002 have already been delegated to Registrar of Cooperative Societies of all States/ UTs.

(d) to (e):     A portal namely Centralised Public Grievance Redress and Monitoring System (CPGRAMS) has already been developed by the Government for redressal of grievances of the petitioners including investors of the MSCS. In addition, Cooperative Ombudsman has been appointed u/s 85A of the MSCS Act, 2002 for inquiring into the complaints made by any members of the multi-State co-operative societies regarding their deposits, equitable benefits of society's functioning or any other issue affecting individual rights of the concerned member.

Further, in case of irregularities including financial embezzlement, a liquidator is appointed under the provisions of Section 89 of MSCS Act, 2002 to liquidate the assets of Society and to ensure payment to investors/members under the provisions of section 90 of the Act and by adopting procedures as per Rule 28 and 29 of the MSCS Rules, 2002.

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