Lok Sabha Question No. 4967 (UNSTARRED), answered on 2025-04-01
Subject: Shut down of Cooperative Societies
Ministry: COOPERATION
Asked by: Shri Charanjit Singh Channi

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION No. 4967 TO BE ANSWERED ON 1 st  APRIL, 2025

## Shut down of Cooperative Societies

## 4967:  Shri Charanjit Singh Channi:

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

- (a) the number of cooperative societies that have shut down in Punjab and across the country in the past three years, along with the r  easons for their closure;
- (b)  whether  the  Government  has  conducted  any  review  or  assessment  of  the  financial  and operational challenges faced by these cooperative societies;
- (c) the steps taken by the Government to revive defunct cooperative societies and prevent further closures;
- (d) whether any financial assistance, restructuring plans, or policy reforms have been introduced to strengthen cooperative societies; and
- (e) the details of any measures to ensure better governance, transparency and accountability in cooperative societies across the country?

## ANSWER

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

- (a) As per National Cooperative Database (NCD), the State-wise number of non-functional cooperative societies in the country including Punjab in the past three years from 01.03.2022 to 01.03.2025, is attached as Annexure 1.
- (b) Yes sir. Three National Cooperative Societies, namely National Cooperative Union of India (NCUI), National Federation of State Cooperative Banks (NAFSCOB), and National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB), have been assigned to conduct seven different studies as detailed in Annexure-2.
- (c) Ministry  of  Cooperation  has  set  up  Co-operative  Rehabilitation,  Reconstruction  and Development  Fund  under  section 63A  of  the Multi-State Cooperative Societies  (MSCS) (Amendment)  Act,  2023  for  revival  of  sick  multi-State  cooperative  societies  and  providing

assistance for meeting infrastructural requirement. Additionally, the Ministry of Cooperation has taken  proactive  measures  to  convert  Primary  Agricultural  Credit  Societies  (PACS),  Dairy,  and Fisheries  Cooperatives  into  multi-purpose  cooperative  societies.  This  initiative  aims  to  enhance business  diversification,  strengthen  financial  sustainability,  and  prevent  closures  by  enabling cooperatives to engage in a wider range of economic activities.

(d) & (e) The Multi-State Cooperative Societies (MSCS) Act, 2002 was amended in 2023 to strengthen governance, enhance transparency, increase accountability and reform electoral process, etc.  in  the  Multi  State  Cooperative  Societies.  Several  other  initiatives  have  been  taken  by  the government in form of policy reforms to strengthen the cooperative societies  and  ensure  better governance, transparency and accountability:

- i) Making Primary Cooperatives economically vibrant and transparent;
2. ii) Strengthening the Urban and Rural Cooperative Banks;
3. iii) Relief to Cooperative Societies in the Income Tax Act;
4. iv) Revival of Cooperative Sugar Mills;
- v) Three new National Level Multi-State Societies;
6. vi) Capacity Building in Cooperatives;
7. vii) Use of Information Technology for 'Ease of Doing Business' etc.;

*****

Annexure-I State-wise total no. of Non-functional cooperative societies in last three years (01.03.2022 to 01.03.2025)

| S.No   | State / UT                  |   Number of non-functional Cooperative Societies |
|--------|-----------------------------|--------------------------------------------------|
| 1      | ANDAMAN AND NICOBAR ISLANDS |                                                1 |
| 2      | ANDHRA PRADESH              |                                                9 |
| 3      | ARUNACHAL PRADESH           |                                                4 |
| 4      | ASSAM                       |                                              134 |
| 5      | BIHAR                       |                                               65 |
| 6      | CHHATTISGARH                |                                               28 |
| 7      | DELHI                       |                                                4 |
| 8      | GOA                         |                                               30 |
| 9      | GUJARAT                     |                                               36 |
| 10     | HARYANA                     |                                               84 |
| 11     | HIMACHAL PRADESH            |                                                9 |
| 12     | JAMMU AND KASHMIR           |                                              377 |
| 13     | JHARKHAND                   |                                               81 |
| 14     | KARNATAKA                   |                                               26 |
| 15     | KERALA                      |                                               30 |
| 16     | LADAKH                      |                                                4 |
| 17     | MADHYA PRADESH              |                                             1189 |
| 18     | MAHARASHTRA                 |                                              226 |
| 19     | MANIPUR                     |                                               33 |
| 20     | MIZORAM                     |                                                2 |
| 21     | NAGALAND                    |                                               67 |
| 22     | ODISHA                      |                                              111 |
| 23     | PUNJAB                      |                                               51 |
| 24     | RAJASTHAN                   |                                              167 |
| 25     | SIKKIM                      |                                                7 |
| 26     | TAMIL NADU                  |                                               83 |
| 27     | TELANGANA                   |                                              190 |
| 28     | TRIPURA                     |                                               17 |
| 29     | UTTAR PRADESH               |                                              702 |
| 30     | UTTARAKHAND                 |                                               23 |
| 31     | WEST BENGAL                 |                                               40 |
|        | Total                       |                                             3830 |

Source: NCD portal as of 01.03.2025

## Details of studies conducted by NCUI, NAFSCOB and NAFCUB

|   S.No. | Topic of Study                                                                                                                                                                                                                                               | Conducted by                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
|       1 | Preparation of a compendium of Existing & Prospective Schemes being provided by Central Govt./State Govt. and other Govt. agencies/bodies for benefit of cooperative sector.                                                                                 | National Cooperative Union of India                                 |
|       2 | Understand disadvantages and advantages of the cooperative sector vis-à-vis other business entities.                                                                                                                                                         | National Cooperative Union of India                                 |
|       3 | Compilation of cooperative laws/rules of different States/UTs to identify differences/ similarities among them and suggest ways to remove the bottlenecks provisions in such laws/rules and ways to achieve uniformity in States/UTs cooperative laws/rules. | National Cooperative Union of India                                 |
|       4 | Profile mapping of all Multi-State Cooperative Societies, preparing identification of data and preparing report on MSCs on annual basis.                                                                                                                     | National Cooperative Union of India                                 |
|       5 | Need of credit in cooperative sector, constraints and ways ahead                                                                                                                                                                                             | National Federation of State Cooperative Banks                      |
|       6 | Study on defunct PACS and measures for their revival                                                                                                                                                                                                         | National Federation of State Cooperative Banks                      |
|       7 | Study on Need and identification of Prudential Financial parameters/norms for multi-state credit Cooperative Societies                                                                                                                                       | National Federation of Urban Cooperative Banks and Credit Societies |

## Annexure-II