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Ministry of Cooperation
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.
- 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
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15,447
|
13,228
|
2,219
|
|
12
|
Himachal Pradesh
|
5,055
|
4,725
|
330
|
|
13
|
Jammu & Kashmir
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9,132
|
3,994
|
5,138
|
|
14
|
Jharkhand
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8,144
|
7,220
|
924
|
|
15
|
Karnataka
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40,440
|
37,732
|
2,708
|
|
16
|
Kerala
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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
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1,274
|
1,237
|
37
|
|
24
|
Nagaland
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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
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6,62,812
|
5,94,791
|
68,020
|
Source: NCD portal as on 15.07.2026
Annexure-2
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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
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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
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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.
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AK/AP
(Release ID: 2297736)
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