MSCS Amendment Bill, 2022

Multi-State Cooperative Societies (MSCS) Amendment Bill, 2022

#GS-02 Governance

For Prelims

MSCS Act, 2002:

  • The Act was passed to govern Multi State Cooperative Societies.
  • Administrative and financial control of these societies is with the central registrar.
  • No state government official can wield any control on them.
  • So far 1,479 such societies have been registered.
  • Maharashtra has the highest number (567) followed by Uttar Pradesh (147) and New Delhi (133).
  • Credit societies constitute the bulk of registered societies followed by agro-based (96 multistate cooperative dairies and 66 multistate cooperative banks),

Multi State Cooperative Societies:

  • Although Cooperatives is a state subject, there are many societies such as those for sugar and milk, banks, milk unions etc whose members and areas of operation are spread across more than one state.
  • For example, sugar mills along the districts on the KarnatakaMaharashtra
  • They are thus registered under the MSCS Act.
  • Their board of directors has representation from all states they operate

Area of Operation:

  • Area of Operation means the area from which the persons are admitted as members.

MSCS Amendment Bill, 2022:

  • The Bill to amend the Multi-State Cooperative Societies (MSCS) Act, 2002, was introduced in the Lok Sabha on December 7.
  • The amendments have been introduced to improve governance, reform the electoral process, strengthen monitoring mechanisms and enhance transparency and accountability.
  • The Bill also seeks to improve the composition of the board and ensure financial discipline, besides enabling the raising of funds in multi-State cooperative societies.
  • It has included provisions relating to representation of women and Scheduled Caste/Scheduled Tribe members on the board of multi-state cooperative societies.
  • The amendments have been brought to reform the electoral process, strengthen monitoring mechanisms and enhance accountability.
  • To improve the governance of multi-state cooperative societies, the Bill has specific provisions for setting up of Cooperative Election Authority, Cooperative Information Officer and Cooperative Ombudsman.
  • There will also be a provision for issuing non-voting shares in multi-state co-operative societies to help them raise funds.
  • Further, the newly proposed Rehabilitation, Reconstruction & Development Fund will help in revitalising sick co-operative societies.

Source “On amending the cooperative societies Act