Lok Sabha Question No. 258 (UNSTARRED), answered on 2025-02-04
Subject: Multi-State Co-operatives, Environmental and Social Responsibility
Ministry: COOPERATION
Asked by: Shri K C Venugopal

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 258 TO BE ANSWERED ON 4 th  FEBRUARY, 2025

## Multi-State Co-operatives, Environmental and Social Responsibility

## 258 Shri K C Venugopal:

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

- (a) the role of the Government in promoting sustainable practices within Multi-State Cooperatives, especially concerning environmental and social responsibility;
- (b) whether  Government  supports  access  to  credit  and  financial  resources  for  smaller Multi-  State  Co-operatives  to  ensure  their  economic  viability,  if  so,  the  details thereof; and
- (c) the manner in which the Government would ensure fair and equitable representation of  various  sectors  and  demographics  within  the  leadership  and  decision-making structures of Multi-State Co-operatives?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a):  Cooperative  societies  registered  under  the  provisions  of  the  Multi-State  Cooperative Societies  (MSCS)  Act,  2002  function  as  autonomous  cooperative  organisations  and  are accountable to their members. MSCSs function as per the provisions of Multi-State Cooperative Societies  Act,  2002  and  rules  made  there  under  read  with  approved  bye-laws  of  the  society. "Concern for Community" is one of the cooperative principles enumerated in the First Schedule of the MSCS Act, 2002, which states the following:

'while focusing on the needs of their members, cooperatives work for the sustainable development of community through policies accepted by their members.'

Further, a digital portal for Central Registrar of Cooperative Societies (CRCS) office has been launched  on  06.08.2023  so  that  all  interaction  and  communication  with  the  MSCSs  are  done electronically to boost efficiency, increase ease of doing business and promote paperless "green" environment friendly regulation. To further strengthen "paperless" working, section 120A of the MSCS Act (inserted through MSCS (Amendment) Act, 2003 notified on 03.08.2023) provides for filing of application, documents, inspections, etc., in electronic form.

(b)  Yes  Sir.  To  increase  access  to  credit  and  financial  resources  for  multi-State  cooperative societies to ensure their economic viability, following steps have been taken: - i.Co-operative Rehabilitation, Reconstruction and Development Fund (CRRDF)  has  been established by the Central Government for revival of sick multi-State cooperative societies and for development purposes in accordance with section 63A of the MSCS Act, which prescribes that there shall be credited to such fund annually by multi-State co-operative societies which are in profit for the preceding three financial years one crore rupees or one percent of the net profits of such multi-State cooperative society, whichever is less.

ii.A provision has also been made through the MSCS (amendment) Act, 2023 for issuing of nonvoting  shares  which  may  not  confer  any  interest  in  the  management  of  the  multi-State  cooperative society including right to vote, to be elected as a director of the board or participate in the general body meetings. This will enable MSCSs to increase their capital base.

(c):  Two  seats  for  women  and  one  seat  for  Scheduled  Caste  or  Scheduled  Tribe  have  been reserved in the Board of a multi-State co-operative society as per the MSCS (Amendment) Act, 2023.

*****