Ministry of Cooperation
azadi ka amrit mahotsav

Financial Irregularities in Cooperative Societies

Posted On: 11 AUG 2026 5:41PM by PIB Delhi

As per the National Cooperative Database (NCD), out of a total 8.53 lakh Cooperative Societies across the country, 6.63 lakh are functional, 1.41 lakh are non-functional and 49,177 are under liquidation. Among 6.63 lakh functional cooperative societies, 5.95 lakh societies are audited and 0.68 lakh societies are not audited. The State-wise details of functional and audited cooperatives societies are attached as Annexure-1. The details of cooperative societies lying dormant due to financial irregularities, weak management and lack of timely audits is maintained by respective State / UTs.

Further, Cooperative Societies registered under the provisions of the Multi-State Cooperative Societies (MSCS) Act, 2002 function as autonomous cooperative organisations and accountable to their members. In case of irregularities including financial embezzlement, winding up proceeding u/s 86 of the MSCS Act, 2002 are initiated against such MSCSs and 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. So far, 115 Multi-State Cooperative Societies are put under liquidation. The State-wise number of such societies is attached as Annexure-2.

  1. The Ministry of Cooperation, since its inception on 06.07.2021, has undertaken several initiatives to ensure transparency, accountability and protection of members' interests in cooperative societies under the vision of "Sahakar-se-Samriddhi."  Key initiatives include:
  • 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 (MSCS).
  • A Cooperative Rehabilitation, Reconstruction and Development Fund was established under section 63A of the Multi-State Cooperative Societies (MSCS) (Amendment) Act, 2023 to revive sick Multi-State Cooperative Societies and provide financial assistance for meeting their infrastructure requirements.
  • Circulation of Model Byelaws of PACS, enabling diversification of activities such as storage, processing, LPG distribution, and common service centers, ensuring better governance standards and promoting member-centric operations.
  • Strengthening of PACS through Computerization of PACS project by bringing functional PACS onto a common ERP-based national software, thereby improving transparency, efficiency, record management and service delivery.
  • Capacity building and skill development programmes through National Council for Co-operative Training (NCCT) for members, Board of Directors, employees of cooperative, state officials and aspiring youth across the country with a network of 20 training institutes.
  • Development of the National Cooperative Database (NCD) which serves as a comprehensive digital repository of 8.53 lakh cooperative societies across the country, having approximately 32 crore members.
  • Inclusion of Rural Cooperative Banks under the RBI Integrated Ombudsman Scheme to bring greater transparency and accountability.

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     Annexure-1

State-wise audit status of functional Cooperative Societies

S. No.

State/UT

Audit Status

Total Functional Societies

Audited Societies

Non-Audited Societies

1

Andaman and Nicobar Islands

 1,217

            1,160

57

2

Andhra Pradesh

 12,408

          11,970

438

3

Arunachal Pradesh

 1,034

                542

492

4

Assam

 8,071

            5,114

2,957

5

Bihar

 22,243

          19,896

2,347

6

Chandigarh

 195

                183

12

7

Chhattisgarh

 10,380

            9,261

1,119

8

Delhi

 1,827

            1,782

45

9

Goa

 3,165

            2,506

659

10

Gujarat

 79,823

          73,340

6,483

11

Haryana

 15,447

          13,228

2,219

12

Himachal Pradesh

 5,055

            4,725

330

13

Jammu & Kashmir

 9,132

            3,994

5,138

14

Jharkhand

 8,144

            7,220

924

15

Karnataka

 40,440

          37,732

2,708

16

Kerala

 15,106

          14,624

482

17

Ladakh

 166

                158

8

18

Lakshadweep

 53

                  22

31

19

Madhya Pradesh

 27,041

          25,479

1,562

20

Maharashtra

 2,19,775

       2,11,329

8,446

21

Manipur

 5,330

            3,992

1,338

22

Meghalaya

 3,100

            2,439

661

23

Mizoram

 1,274

            1,237

37

24

Nagaland

 1,943

            1,491

452

25

Odisha

 8,063

            4,864

3,198

26

Puducherry

 400

                399

1

27

Punjab

 12,666

          11,715

951

28

Rajasthan

 27,172

          23,497

3,675

29

Sikkim

 1,398

            1,012

386

30

Tamil Nadu

 21,090

          19,384

1,706

31

Telangana

 46,672

          43,478

3,194

32

DNH & DD

 379

                170

209

33

Tripura

 2,237

            1,744

493

34

Uttarakhand

 4,450

            2,599

1,851

35

Uttar Pradesh

 22,888

          15,528

7,360

36

West Bengal

 23,028

          16,977

6,051

 

Total

 6,62,812

       5,94,791

68,020

Source: NCD portal as on 15.07.2026

Annexure-2

 

S.No.

State / UT

No. of MSCS-under liquidation

1

Andhra Pradesh

2

2

Bihar

1

3

Chandigarh

1

4

Delhi

16

5

Goa

1

6

Gujarat

4

7

Jharkhand

1

8

Karnataka

1

9

Maharashtra

23

10

Odisha

12

11

Punjab

1

12

Rajasthan

26

13

Tamil Nadu

3

14

Telangana

2

15

DNH & DD

1

16

Uttar Pradesh

14

17

West Bengal

6

 

Total

115

 State wise number of MSCS-under liquidation

This information was given by Union Home Minister and Minister of Cooperation, Shri Amit Shah in a written reply in Lok Sabha.

*****

AK/AP


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