Cooperative Society Registration

Cooperative Society Registration- Introduction

A co-operative society is a voluntary association of individuals having common needs who join hands for the achievement of common economic interest. Its aim is to serve the interest of the poorer sections of society through the principle of self-help and mutual help. The main objective is to provide support to the members. Nobody joins a cooperative society to earn profit. People come forward as a group, pool their individual resources, utilize them in the best possible manner, and derive some common benefit out of it. However, ‘Cooperative Societies’ is a State Subject (Entry 32 of List II of Seventh Schedule to Constitution, i.e. State List). Though the Act is still in force, it has been specifically repealed in almost all the States and those States have their own Cooperative Societies Act. Thus, practically, the Central Act is mainly of academic interest and as per preamble to the Act, the Act is to facilitate formation of cooperative societies for the promotion of thrift and self-help among agriculturists, artisans and persons of limited means. If object of the society is creation of funds to be lent to its members, all the members must be residing in the same town, village or group of villages or all members should be of same tribe, class, caste or occupation, unless Registrar otherwise directs. The provision of minimum 10 members above 18 years of age or residing in same town/village etc. is not applicable if a registered society is member of another society.

The Statement of Objects and reasons states as follows:

(a) Cooperative Society can be established for purpose of credit, production or distribution.
(b) Agricultural credit societies must be with unlimited liability.
(c) Unlimited society is not best form of cooperation for agricultural commodities.
(d) Unlimited society can distribute profits with permission of State Government.

A society which has as its object the promotion of economic interests of its members in accordance with cooperative principles can be registered as a Society. Similarly, a society established with the object of facilitating operation of such a society can also be registered under the Act. The society can be registered with limited or unlimited liability. However, unless State Government otherwise directs,

(1) Liability of a society of which a member is a registered society shall be limited.
(2) Liability of a society of which object is to creation of funds to be lent to members, and of which majority of members are agriculturists and of which no member is a registered society shall be unlimited.

Thus, a registered society can be member of another society, but liability of such other society must be limited, unless State Government otherwise directs. The last word in name of society should be ‘Limited’, if the Society is registered with limited liability. If a society has limited liability, any individual member of such society cannot have share capital more than one-fifth of total capital. An individual member cannot have interest in shares exceeding ₹1,000. This restriction of 20% shares or ₹ 1,000 shares value is not applicable to a registered society which is member of another society. Thus, if a registered society is member of another society, it can hold shares exceeding 20% or exceeding ₹1,000 in value.

A registered cooperative society can hold property, enter into contracts, institute and defend suit and other legal proceedings and to do all things necessary for the purposes of its constitution. A registered society can give loans only to its members. However, it can give loan to another registered society with permission of Registrar.

A society with unlimited liability cannot lend money on security of movable property without sanction of registrar. State Government, by issuing a general or special order, can prohibit or restrict lending of money on mortgage of immovable property by any registered society or class of registered society. Registrar, after inspection or inquiry, or on application received from 75% of members of society, may cancel the registration of society, if in his opinion, the Society should be dissolved. Any member can appeal against the order of Registrar within two months to State Government or other Revenue Authority authorized by State Government. If no appeal is filed within two months, the order of dissolution shall become effective. If appeal is filed, the order will become effective only after it is confirmed by appellate authority. Although all types of cooperative societies work on the same principle, they differ with regard to the nature of activities they perform.

Characteristics of A co-operative society

Open membership

The membership of a Co-operative Society is open to all those who have a common interest. A minimum of ten members are required to form a cooperative society. The Co operative societies Act do not specify the maximum number of members for any co-operative society. However, after the formation of the society, the member may specify the maximum number of members.

Voluntary Association

Members join the co-operative society voluntarily, that is, by choice. A member can join the society as and when he likes, continue for as long as he likes, and leave the society at will.

State control

To protect the interest of members, co-operative societies are placed under state control through registration. While getting registered, a society has to submit details about the members and the business it is to undertake. It has to maintain books of accounts, which are to be audited by government auditors.

Sources of Finance

In a co-operative society capital is contributed by all the members. However, it can easily raise loans and secure grants from government after its registration.

Democratic Management

Co-operative societies are managed on democratic lines. The society is managed by a group known as “Board of Directors”. The members of the board of directors are the elected representatives of the society. An elected managing committee has the powers to take decisions. Each member has a single vote, irrespective of the number of shares held. For example, in a village credit society the small farmer having one share has equal voting right as that of a landlord having 20 shares.

Service motive

Co-operatives are not formed to maximize profit like other forms of business organization. The main purpose of a Co-operative Society is to provide service to its members. For example, in a Consumer Cooperative Store, goods are sold to its members at a reasonable price by retaining a small margin of profit. It also provides better quality goods to its members and the general public.

Separate Legal Entity

A Co-operative Society is registered under the Co-operative Societies Act. After registration a society becomes a separate legal entity, with limited liability of its members. Death, insolvency or lunacy of a member does not affect the existence of a society. It can enter into agreements with others and can purchase or sell properties in its own name. It does not get affected by the entry or exit of its members.

Distribution of Surplus

Every co-operative society in addition to providing services to its members also generates some profit while conducting business. Profits are not earned at the cost of its members. Profit generated is distributed to its members not on the basis of the shares held by the members (like the company form of business), but on the basis of members’ participation in the business of the society. For example, in a consumer co-operative store only a small part of the profit is distributed to members as dividend on their shares; a major part of the profit is paid as purchase bonus to members on the basis of goods purchased by each member from the society.

Self-help through mutual cooperation

Co-operative Societies thrive on the principle of mutual help. They are the organizations of financially weaker sections of society. Co-operative Societies convert the weakness of members into strength by adopting the principle of self-help through mutual co-operation. It is only by working jointly on the principle of “Each for all and all for each”; the members can fight exploitation and secure a place in society. If any surplus is generated, it is distributed amongst the members as a dividend in conformity with the bye-laws of the society.

Different types of co-operative societies

Consumers’ Co-operative Society

These societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution. Kendriya Bhandar, Apna Bazaar and Sahkari Bhandar are examples of consumers’ co-operative society.

Producers’ Co-operative Society

These societies are formed to protect the interest of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc. Handloom societies like APPCO, Bayanika, Haryana Handloom, etc., are examples of producers’ co-operative society.

Co-operative Marketing Society

These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling those products in the market. Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society.

Co-operative Credit Society

These societies are formed to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society.

Co-operative Farming Society

These societies are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming. Lift-irrigation cooperative societies and pani- panchayats are some of the examples of co-operative farming society.

Housing Co-operative Society

These societies are formed to provide residential houses to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies also provide loans at low rate of interest to members to construct their own houses. The Employees’ Housing Societies and Metropolitan Housing Co-operative Society are examples of housing co-operative society.

Resource-Society

operative society formed with the objective of obtaining for its members the credit, goods or services required by them such as

Thrift and Urban Credit Co-operative Society.
Agricultural Credit Co-operative Society.
Agricultural Non-Credit co-operative society.
Multipurpose Co-operative society
Urban Thrift & Credit Co-operative Bank.
Co-operative Bank.
Co-operative Land Mortgage Bank.
Housing Finance Co-operative Society
Thrift & Retirement and other ancillary benefits co-operative society

Processing Society

co-operative society the object of which is the processing of goods by mechanical or manual process.

Joint Farming Society

co-operative society in which with the object of increasing agricultural production, employment, income and better utilization of resources, land held by members is pooled together and is jointly cultivated by the members on behalf of the co-operative society.

Co-operative Union

co-operative society which has as its principal object the undertaking of Co-operative Education, Propaganda and Training.

Classification of Co-Operative Societies

Every Co-operative Society shall be classified by the Registrar in accordance with sub-ruled. The Registrar may sub-divide any class of Co-operative Societies into categories with reference to the composition of their membership, the nature of business transacted by them or the articles handled by them or any other similar consideration. If any co-operative society classified as aforesaid is a federal society it may be classified as Apex or Central Cooperative Society. "Apex Co-operative Society" means a co-operative society whose area of operation extends to the whole of the Union territory of Delhi and which has as its principle objects the promotion of the principal objects and provisions of facilities for the operation of other co-operative societies affiliated to it.

"Central Co-operative society" means a co-operative society whose area of operation is confined to a specified part of the Union Territory of Delhi and which has as its principal object the promotion of the principal objects and the provision of facilities for the operation of other co-operative societies affiliated to it.If any question arises as to the class to which a cooperative society belongs within the meaning of this rule, the question shall be referred to the Registrar whose decision shall be final. The Lt. Governor may confer on any person appointed to assist the Registrar all or such of the functions Persons appointed to assist the Registrar under section 3 may be designed as the Additional Registrar, and powers of the Registrar under the rules as may be specified by him by order made in writing. The Registrar may appoint other field and ministerial staff to enable him or other officers to whom powers of the Registrar have been conferred to carry on his functions efficiently and for the promotion of the co-operative movement.

Procedure for Conversion of a Co-Operative Society into a Different Class

(1) Any co-operative society may, at a meeting of its general body specially called for the purpose, of which at least seven clear days' notice has been given to its members, resolve to convert itself by an amendment of its bye-laws into a co-operative society of a class different from the one to which it belongs. The said resolution (hereinafter In this rule referred to "as the preliminary resolution") shall include the amendments to the bye-laws proposed for adoption by this co-operative society.
(2) (i) A copy of preliminary resolution shall be sent to the members and creditors of the society;
(ii) Any member of the co-operative society may, notwithstanding any bye-laws to the contrary by notice-given to the cooperative society within a period of one month from the date of receipt by him of the preliminary resolution intimate his intention to withdraw his share capital from the co-operative society-.
(iii) Any creditor of the co-operative society may, notwithstanding any agreement to the contrary, by notice given to the cooperative society within the period referred to in clause (ii). Intimate his intention to demand a return of the amount due to him.

(3) After the expiry of two months from the date of dispatch of the preliminary resolution to all the members and creditors of the co-operative society, a meeting of the members of the co-operative society, of which at least fifteen clear days' notice shall be given to its members shall be convened for considering the preliminary resolution. If, at such meeting, the preliminary resolution is confirmed by a resolution passed by a majority of not less than two-thirds of the members present and voting either Without changes or with such changes as, in the opinion of the Registrar, are not material, he may, on receipt of a copy such resolution certified in the manner specified in the rules and subject to the provisions of section 11, register the amendment to the bye-laws adopted by the co-operative society. On such registration the conversion shall be deemed to have taken effect. The opinion of the Registrar as to whether the changes made in the preliminary resolution are or are not material shall be final.

(i) the repayment of the share capital of the members who have given notice under clause (ii) of sub rule (2), and
(ii) the satisfaction or the claims of all the creditors who have given notice under clause (iii)of sub-rule (2).

Provided that no members or creditor shall be entitled to such repayment or satisfaction until the preliminary resolution is confirmed as provided in sub-rule (3).

(5)If, in the opinion of the Registrar, the provision made for the repayment of the share capital of the members and the satisfaction of the claims of creditors referred to in sub-rule (4) is not satisfactory, the Registrar may refuse to register the amendment to the bye-laws adopted by the co-operative society.

Advantages of Co-operative form of business organization

Easy Formation:

Formation of a co-operative society is very easy compared to a joint stock company. Any ten adults can voluntarily form an association and get it registered with the Registrar of Co-operative Societies.

Open Membership:

Persons having common interest can form a co-operative society. Any competent person can become a member at any time he/she likes and can leave the society at will. As it is a voluntary association, the membership is also voluntary. A person is free to join a cooperative society, and can also leave anytime as per his desire. Irrespective of their religion, gender & caste, membership is open to all.

Democratic Control:

A co-operative society is controlled in a democratic manner. The members cast their vote to elect their representatives to form a committee that looks after the day-to-day administration. This committee is accountable to all the members of the society. One man one vote principal is followed and not according to shares.

Limited Liability:

The liability of members of a co-operative society is limited to the extent of capital contributed by them. Unlike sole proprietors and partners the personal properties of members of the co-operative societies are free from any kind of risk because of business liabilities.

Elimination of Middlemen’s Profit:

Through co-operatives the members or consumers control their own supplies and thus, middlemen’s profit is eliminated.

State Assistance:

Both Central and State governments provide all kinds of help to the societies. Such help may be provided in the form of capital contribution, loans at low rates of interest, exemption in tax, subsidies in repayment of loans, etc.

Stable Life:

A co-operative society has a fairly stable life and it continues to exist for a long period of time. Its existence is not affected by the death, insolvency, lunacy or resignation of any of its members.

Disadvantages of Co-operative form of business organization

It is limited to certain objectives hence profits are minimal

Management of society usually rests in the hands of people with less managerial experience due to which society will suffer and many do not invest in hiring professionals to handle the society due to lack of funds or interest so henceforth growth of the society maybe put to stake by its own members.It is limited to certain objectives hence profits are minimal.

There is much dependence on the honesty, integrity and loyalty of members and workers and once there are trust issues between the members it is hard to transact business thereafter.

Officers and directors do not get benefits and allowances

It only caters to the needs of small and medium-income groups so when there are large group with higher economic interest then it is preferable to choose another business model.

Effect of Registration / Non-Registration of a Society

The Societies Registration Act, 1860 lays down procedure for registration of societies for various bonafide purposes. The registration gives the society a legal status and is essential

for opening bank accounts,
obtaining registration and approvals under Income Tax Act,
lawful vesting properties of societies, and
Gives recognition to the society at all forums and before all authorities.

When the society is registered, it and its members become bound to the same extent, as if each member had signed the memorandum. A society, registered under this Act, must confine its activities to the sphere embraced by its objects. A tax imposed on a society is one imposed on the society and not on its members. A society registered under the Act enjoys the status of a legal entity apart from the members constituting it. A society so registered is a legal person just as an individual but with no physical existence. As such it can acquire and hold property and can sue and be sued.

The society should be registered under the Act to acquire the status of juridical person. In the absence of registration, all the trustees in charge of the fund have alone a legal status and the society has no legal status, and, therefore, it cannot sue and be sued. A non-registered society may exist in fact but not in law. It is immaterial under the Act whether the society is registered but where the benefit is claimed, the registration of society under the Act us required. An unregistered society cannot claim benefits under the Income-tax act.

Accounts and Audits

The societies are in possession of funds and properties provided to them by the members or by other persons (by way of donation etc.). The funds and properties are interested for the attainment of objects for which the society has been formed. The members of the governing body are the trustees who apply the funds. It becomes necessary, that the societies maintain regular account books and get them audited and present them to the members at the general meeting and file them with the Registrar for scrutiny. Every society should get its accounts audited once a year by duly qualified auditor and have balance sheet prepared by him. The auditor should submit the report showing the exact date of financial affairs of the society.

Litigation

As every society is a legal entity separate from its members it is capable of filing suits against any person or any member. Similarly, the suits can also be brought against the society.

The registered society can file a suit anywhere in India and in any state although it is not registered in that particular state.

Legal and regulatory framework for co-operative societies

Constitution and Governing Laws

The incorporation, regulation and winding up of co-operative societies (other than those operating in more than one State) are a State subject and are governed by the State laws on co-operative societies. In the case of co-operatives with objects not confined to one State, their incorporation, regulation and winding up fall in the central domain and are governed by the Multi-State Co-operative Societies Act, 2002. As the vast majority of co-operative societies are operating only in one State, the State Government and the Registrar of Co-operative Societies appointed by the State are the main regulatory authorities for the cooperative societies.

Banking Co-Operatives

When co-operative societies engage in banking business, in addition to the regulatory laws applicable to co-operative societies, the central laws governing banking are attracted. Thus, the Banking Regulation Act, 1949 has been made applicable to co-operative banks.

Duality of Control -Conflict Of Laws

In the case of banking companies, which are registered under the Companies Act and are also governed by the provisions of the Banking Regulation Act in respect of their banking business, if the provisions of the Banking Regulation Act are in conflict with the Companies Act, the former prevails. Hence, the Reserve Bank has full regulatory powers over the banking companies. In the case of co-operative banks, although they are required to obtain a license under Section 22 of the Banking Regulation Act, they are subject to a lesser extent of regulatory oversight under the modified provisions of BR Act as provided in Section 56.

Regulation of Banks - Uniform Regulations

For the proper regulation of the banking system in the country, it would be essential to have a more or less uniform regulatory regime for all kinds of banks irrespective of their constitution as company, cooperative society or statutory corporation, as these provisions are meant for proper regulation of the business of banking and not in respect of their constitution as such. Any regulation on management, in so far as it is essential for proper management of the business of banking, has to be considered as incidental to the main regulatory provisions on banking and therefore justified even if it touches the subject of regulation of co-operatives which is a State subject. In the case of co-operatives which for any reason do not want to be subject to the discipline of the banking system, they may be given the option to go out of the system and work as thrift and credit societies. Those co-operatives, which continue in the banking system, should be subject to regulation under the Banking Regulation Act on the lines of the provisions applicable to banking companies.

Opting Out Of Banking - Thrift and Credit

Banking as defined in Section 5(a) of the Banking Regulation Act means accepting for the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise. Thus acceptance of deposit from the public is an essential feature of banking and if a society does not accept deposit from the public, it would not be engaged in the business of banking. Hence, societies not accepting public deposit would be outside the purview of the banking regulation Act. If any co-operative society does not want to be subjected to the regulatory regime for banks, such societies may be permitted to go outside the purview of the Banking Regulation Act by not accepting deposits from public and thereby ceasing to do banking business as defined in Section 5 (a) of the BR Act.

Deposit and Public Deposit

A relevant question is whether acceptance of deposits from members has to be treated as public deposits and regulated. Financial Companies which accept public deposits but are not engaged in banking business are regulated by the Reserve Bank under the RBI Act and other companies by DCA under the Companies Act and Companies (Acceptance of Deposits) Rules made thereunder. Deposit or public deposit is not defined in the Banking Regulation Act. In the RBI Act "deposit" is defined in Section 45 I (bb) (for the purpose of regulation of NBFCs and UIBs) to cover all kinds of receipts of money including loans but excluding share capital, security deposit, advance for purchase of goods etc. and loans from banks, financial institutions etc. "Public deposit" is not defined in the RBI Act. However, there is a definition of "public deposit" in the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, which provides that all deposits except certain categories.

Membership Rights

The societies doing business only with their members are considered to be able to manage their own affairs as the society is managed by them and public intervention may not be necessary. However, many societies accept deposits from the public enrolling the depositors as nominal members who may not be eligible to full membership rights and therefore, having no effective control over the management of the society. While allowing societies to go outside the Banking Regulation Act by restricting deposits to member deposits, it may be insisted that such members may have full and equal rights in participation of the affairs of the societies.

Issuance of Cheque

Section 49A of the Banking Regulation Act restricts acceptance of deposits by any person other than a banking company, Reserve Bank, State Bank or any other banking institution, firm or other person notified by the Central Government. However, a primary credit society is exempted from these provisions.

Mutually Aided Co-Operative Societies

The dependence of co-operative societies on Government and the consequent rigors of regulation by Government on co-operative societies have led to the enactment of Mutually Aided Co-operative Societies Act or Self Financing Co-operative Societies Act in several states19. In the societies under the enactments, Government capital is prohibited and the management of the societies is vested in the Board of Directors and the policies are decided by the General Body subject to limited regulatory powers exercised by the Registrar by way of registration of society, registration of bye laws, etc. These State enactments are in addition to the existing State laws on co-operative societies and provides alternative legal framework for co-operative societies. However, in some States (like Orissa), the State enactments provide for creation of a cooperative as distinguished from a co-operative society .This could lead to the position that the entity in question is not co-operative society and the enactment concerned is not a State law on co-operative societies, and that would render the co-operative ineligible to be licensed as a cooperative bank under section 22 of the BR Act.

Application for Registration

(1) Every application for registration of a co-operative society under sub section (1) of section 7 shall be made in Form (i) in Hindi or English, and shall subject to the provisions of sub-rules (ii) and (iii), be duly signed by the applicants and be accompanied by:-

Four copies of the proposed bye-laws of the co-operative society duly signed by each of the persons who sign the application for registration.
A certificate from the Financing Bank that the amount of share capital raised by the promoters has been deposited in the name of the proposed co-operative society in suspense account.
A list for persons who have contributed to the share capital together with the amount contributed by each of them, and the entrance fee paid by them.
The scheme showing the details explaining how the working of the co-operative society will be economically sound and, where the scheme envisages the holding of immovable property by the co-operative society, the description of immovable property proposed to be purchased, acquired or transferred to the co-operative society the scheme shall be drawn in accordance with the viability norms for registration of different classes/types of societies as given in Schedule VII to these rules. These norms can be modified by the Registrar from time to time. (Amended on 6.8.97)
Such other documents as may be specified in the model bye-laws, if any.
A declaration on oath from each of the promoters to the effect that, he is not a member of the family of any other promoter joining in the application for registration within the meaning of explanation given under section 5.

In the case of a housing co-operative society an affidavit from each of the promoter members:

That he does not own a residential house or plot of land for construction a residential house thereon in his own name or in the name of his wife or dependent children on lease-hold or free hold basis in the Union territory of Delhi.
that he or his wife or any of his dependent children is not a member of any other housing society;
that he or his wife or any of his dependent children is not dealing in the business of purchase or sale of house/land in the Union Territory of Delhi directly or indirectly either as a principal or an agent,

a statement showing financial position of each of the promoters.
Certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Registrar may address his correspondence under the rules before registration and dispatch or hand over registration documents referred to in sub-rule (3) of rule 8.

(2) Where any member of a co-operative society to be registered is a registered co-operative society, a member of the committee of such a registered co-operative society shall be authorized by the committee by resolution to sign the application for registration and the bye-laws on its behalf, and a copy of such resolution shall be appended to the application.

(3) Where any member of a co-operative society to be registered is a firm, company, corporate body, society registered Under the societies Registration Act 1860, or public trust registered under any law for the time being in force relating to registration of pubic trusts, or a local authority, then such firm, company, corporate body, society, public trust or local authority shall duly authorized any person to sign the application for registration and the bye-laws on its behalf, and a copy of such authority shall be appended to the application.

(4) The application shall be sent to the Registrar by registered post, or delivered by hand.

(5) On receipt of an application under rule 6, the Registrar shall enter particulars of the application in the register of applications to be maintained in Form 2, give a serial number to the application and issue a receipt in acknowledgement thereof.

Pre-requisites of Cooperative Society Registration

Those persons, who wish to form a Co-operative Society, should send an application to the Assistant Registrar of the area on a prescribed Performa i.e. Form I along with the proposed byelaws, indicating the type of the society they want to form, number of persons likely to be enrolled as its members, and the name and address of the persons authorized to function as chief promoters and to attend to organizational matters. This application should be signed by not less than 10 persons or by such number of persons as per instructions issued by the Registrar, Co-operative Societies from time to time. A joint application along with the bye-laws of the society containing the details about the society and its members has to be submitted to the Registrar of Co-operative Societies of the concerned state. After scrutiny of the application and the bye–laws, the registrar issues a Certificate of Registration. Requirements for Registration are

(1) application with the signature of all members and

(2) Bye-laws of the society containing the information on

Name, address and aims and objectives of the society;
Names, addresses and occupations of members;
Mode of admitting new members;
Share capital and its division.

(3) PAN Card of all the members of your proposed society to be attached with the registration application.

(4) Next, deposit the valid Residential proof of all the members including, Bank Statement, Driving License, Aadhaar Card, Utility Bill and Passport.

(5) Prepare a Memorandum of Association that must contain these clauses and information:

The central objectives of your society for which it got established.
All details of members forming the society
The address of the registered office of your society.
The rules and regulations which will govern and maintain of day to day activities of the proposed society.
Moreover, it will contain the rules for taking the Membership of the Co-operative society.
The details about the meetings that will be held in future.
Information about the Auditors
Forms of Arbitration in case of disputes between the society’s members.
Ways for the dissolution of the society

(6) A Cover Letter which clearly mentions about the objective or the purpose of your society. Ensure that every founding member of the society has signed the cover letter.

(7) A copy of the Address Proof, where the registered office of your society will get located along with a NOC from the landlord if any.

(8) Give a list of all the members of the governing body with their signatures.

((9) The last and most essential document which you need to submit with the application is a declaration by the society’s president. He must confirm that he is willing and competent to hold the stated position.

Requirements for forming a Co-operative Society

Minimum number of persons required as 10 or as per instructions issued by Registrar, Co-operative Societies.
The society's object should be promotion of the economic interests of its members in accordance with Co-operative principles.
The proposed society should be capable of being run on economically sound lines.
The Registration of the proposed society should not have an adverse effect on Co-operative movement.
The prospective members should contribute a minimum amount of share capital for the particular type of society to be started as per its byelaws.

Once the bank formalities are completed then the promoter has to apply for the society formation to the registration authority and it has to be accompanied with set of documents, they are “Form No. A” in quadruplicate signed by 90% of the promoter members

List of promoter members
Bank Certificate
Detailed explanation of working of the society.
Four copies of proposed bye-laws of the society.
Proof of payment of registration charges.
Other documents such as affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted.

All these documents have to be submitted at the time of applying for registration of the society to the registering authority and the authority after it is satisfied with the documents submitted to it has to apply its mind to whether or not to register the said society.

Process of Cooperative Society Registration

➡ Step 1:

To form a Co-operative Society, it’s essential to find 10 individuals above the age of 18 years detailing the name, address, objectives and area of operation of the proposed society along with promoters’ contact details who share a common objective and desires to commence a Society.

➡ Step 2:

The next thing to do is to form a Provisional Committee and elect a chief Promoter amidst them

➡ Step:3

Then all the members must voluntarily select a name for the society.

➡ Step:4

Now you need to apply to the Registration Authority for name reservation of your Co-operative Society. You must.obtain a confirmation letter for the name reservation. Also, the reserved name shall be valid for 3 months.

➡ Step:5

Further, collect the entrance fees and share capital from all the prospective members of your society.

➡ Step:6

Thereby open a bank account in the name of your Co-operative Society and deposit the collected entrance fees and share money in that account. Also, procure a certificate in that respect.

➡ Step:7

Now deposit the registration fees with the Reserve Bank of India and thereof obtain a receipt of 1challan.

➡ Step:8

Submit the application for registration to the Registrar of Societies of the concerned municipal ward along with the necessary documents.

➡ Step:9

Subsequent to your application, the Registrar will enter the particulars in his register in Form “B.”Thereby he will give you serial number and issue a receipt in acknowledgement of the same

Step:10

Lastly, the Registrar notifies you about the registration of the Co-operative Society in the Official Gazette and thus issues you the certificate of registration.

Process of scrutinizing documents for Cooperative Society Registration

After receiving application for registration of Cooperative Society may be addressed to the Registering Authority* signed by at least 10 promoters above the age of 18 years detailing the name, address, objectives and area of operation of the proposed society along with promoters’ contact details.

The registering authority shall depute an officer within 3 (three) days from the date of receipt of the application for verifying the feasibility of formation of the proposed Cooperative & assess its sustainability after due discussion with the promoters.
The officer so deputed shall submit the feasibility report within 7(Seven) working days with specific comments on-

Attainability of the proposed objectives and feasibility of the cooperative society as a business organization.
Area of operation of the proposed society and possibility of any unhealthy competition with other similar cooperatives within the area of operation.
Level of participation of the promoter’s members and their awareness about the cooperative principles and the objectives of the proposed society.

In case the feasibility for organization of the Cooperative Society is verified by the departmental officer, the Registering Authority shall send a copy of the Prescribed Form for Registration of Cooperative Society to the person concerned with a direction to adopt their Bye-laws to convene the inaugural General Meeting & depute an officer to facilitate holding of the same.
The promoters may also collect the prescribed form from the office of the Registering Authority any day after 7 days from the date of submission of the feasibility report.

The promoters then shall submit the application in prescribed form along-with 4 copies of the proposed bye-laws, proceedings of the inaugural General Meeting and the registration fees as per provision of Section 17(1) the Assam Cooperative Societies Act, 2007.
The Registering Authority shall register the Society after receipt of the formal application / registration fee & issue the Registration Certificate accordingly.
In case it is found by the Registering authority that the proposed cooperative society cannot be registered for some reasons, the same shall be communicated to the promoters in written citing the reasons within 5 (five) days from the date of receipt of the ‘Feasibility Report’ from the officer concerned.
The entire process of registration shall preferably be completed within 2 (two) months from the date of receipt of the formal application and the proposed society will be deemed to be registered after the expiry of 60 (sixty) days from the date of receipt of the formal application/registration fees if the matter is not disposed of within the stipulated period otherwise.

Lastly, the Registrar notifies you about the registration of the Co-operative Society in the Official Gazette and thus issues you the certificate of registration.

Where the ARCS refuses to register a society, he is required to communicate within a period of one month from the date of receipt of application for registration, the order of refusal together with the reasons thereof to such of the applicants as may be prescribed: Provided that if the application for registration is not disposed of within a period of one month as specified above, the application shall be deemed to have been accepted for registration. Form of application for registration of a Co-operative Society is available with the offices of ARCS in the state.

Disposal of Application for Registration

(1) On receipt of the application under rule 6 and before passing final order under section 9 the Registrar may call for such further information from the applicants or make such independent enquiries as he may deem fit.

(2) Registrar may give, whenever necessary, the reasonable time not exceeding one month to the promoters to modify the proposed byelaws before finally registering the Co-operative Society which should be within the limit prescribed under section 9 of the Act. (Amended on 9.9.98)

(3) On registering a co-operative society and its bye-laws under sub-section (1) of section 9, the Registrar shall, as soon as may be, notify the registration of the cooperative society in the official Gazette and grant to the cooperative society a certificate of registration in Form 3 signed by him and bearing his official seal and containing the registration number of the co-operative society, and the date of its registration. The Registrar shall also furnish the co-operative society a copy of the byelaws approved and registered by him with a certificate in the following form recorded on the last page of the bye-laws after the signatures of the promoters:- Certified that these bye-laws have, been registered under section 9(1) of The Delhi Co-operatives societies Act, 1972 at page .............................. Volume No..................... this.................day of...................20…. Signature ........................................... Seal..................................................

(4) The documents referred in sub-rule (3) shall be delivered to a person authorized or shall be dispatched by post under "acknowledgement due" registered cover.

Maintenance of register

(1) The Registrar shall maintain a register in Form 4 of all-co-operative societies registered or deemed to be registered under the Act.

(2) The Registrar shall divide the register into several parts, one for each of the following classes of co-operative societies:-

Resources.
Producers.
Agricultural.
Housing.
Consumers.
Federal

(3) The Registrar shall assign for each class or sub-class of co-operative society a code symbol for giving registration No. to the co-operative society and the co-operative society shall be registered from the date specified in the certificate of registration.

(4) All the existing co-operative societies shall be deemed to be registered under the Act, and shall first be entered in the register under distinct code symbol assigned to a class of co-operative society to which the existing co-operative society belongs in chronological order with reference to the date of earlier registration deemed to be the registration under the Act. A list of all such co-operative societies shall be published in Form 9 in the official Gazette soon after the publication of the notification under sub-sec. (3) of section 1.

(5) If the particulars of any existing co-operative society deemed to be registered under the Act are not so published or published under classification different from the aims and objects in the existing registered bye-laws, the existing co- operative society shall make an application in writing to the Registrar within 30 days of the publication of the list referred to in sub-rule (4) for the publication of its name in the official Gazette.

(6) On receipt of the application under sub-rule (5), the Registrar, after making such enquiries as may be deemed fit by him, shall pass appropriate order thereon.

(7) After entering the existing co-operative society in the register, new co-operative society to be registered under the Act shall be entered in the register.

(8) The Registrar shall keep in separate guard files in loose leaf system in respect of each part of the register referred to in sub-rule (2) wherein copies of registered bye-laws of the co-operative society shall be kept in chronological order of the registration. Each page in this file shall be serially numbered. Each volume of this file shall be given its distinct serial number.

Commencement of Business

Every co-operative society shall commence working within three months from the date of its registration. Form of report under proviso to sub section (3) of section 9. The report to be made by the Registrar to the Lt. Governor under the proviso to sub-section (3) of section 9 shall be in Form 6

Refusal to Register

Without prejudice to the generality of the power under sub-section (Z) of section 9, the Registrar may refuse to register a co-operative society on any one of the following grounds:-

No co-operative society shall be registered by the name which is identified with or which nearly resembles the name by which a co-operative society is in existence and has been previously registered other name or is in contravention of any law for that time being in force. (Amended on 24.5.82)
No proposal for the registration of a co-operative society may be accepted by the name which is likely in the opinion of the Registrar, to deceive or mislead the members of the public as to its nature of identity.
The Registrar may not consider the proposal favorably if in his opinion the aims and objects of the co-operative society are similar to those of a co-operative society already functioning in that area satisfactorily.
Except otherwise permitted, the members of a co-operative society do not reside within the area of its operation or in the opinion of the Registrar are drawn from heterogeneous elements.
If in the opinion of the Registrar area of operation of a co-operative society extends over an un-manageable area.
The proposal for registration of a co-operative society is against the principles of co-operation.
Any other ground considered just and equitable by the Registrar.

Registration File

Each co-operative society shall keep at its registered address a registration file containing:-

Registered bye-laws.
An index of amendment of bye-laws.
All registered amendments to the bye-laws duly entered in the index along with certificates of registration of amendments.
Certificate of registration
A copy of the Act.
A copy of rules.
The above File shall be open for inspection at all times during working hours to the Registrar or any other officer authorized by him and every member of the society.

Amendment of bye-laws of a co-operative society

(1) No amendment of any bye-laws of a co-operative society shall be valid unless such amendment has been registered or deemed to have been registered under this Act.

(2) Every proposal for such amendment approved by the general body and complete in all respect as prescribed shall be forwarded to the Registrar within thirty days of approval of the general body and if the Registrar is satisfied that the proposed amendment -

is not contrary to the provisions of this Act and the rules;
does not conflict with the co-operative principles; and
will promote the economic, social and cultural interests of the members of the co-operative society; he may register the amendment :

Provided that in case of amendment of bye-laws of a co-operative bank, prior approval in writing of the Reserve Bank shall be necessary.

(3) The Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.

(4) Where the Registrar refuses to register an amendment of bye-laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefore, to the co-operative society in the prescribed manner.

(5) In case the Registrar does not communicate any decision under sub-section (2) or sub-section (4) as above within the period of ninety days, the amended bye-laws shall be deemed to have been registered.

(6) Where it appears to the Registrar that amendment in the bye-laws of a co-operative society is necessary and desirable in the interest of the co-operative society or class of co-operative societies, the Registrar shall direct the co-operative society or the class of co-operative societies, as the case may be, to make amendment in the bye-laws within a period of sixty days, by convening a general body meeting of the co-operative society.

(7) After the expiry of the period specified in sub- section (6) and if the co-operative society fails to make the amendment, the Registrar after giving the co-operative society an opportunity of being heard, may register the amendment and issue to the co-operative society, a copy of such amendment certified by him with a certificate signed by him, with effect from the date of registration the amendment shall be binding on the co-operative society and its members, subject to appeal, if any.

Matters in respect of which Registrar may direct society to make bye-laws or society may make Bye-Laws

(1) The Registrar may require a co-operative society to make bye-laws in respect of all or any of the following matters, namely:-

(a) the name of the co-operative society, address of the co-operative society and its branches:
(b) the area of operation;
(c) the objects of the co-operative society;
(d) the manner in which and the limit up to which the funds of the co-operative society may be raised, the maximum share capital which any one member may hold and the purpose to which the funds would be made applicable;
(e) the terms and qualifications for admission to membership;
(f) the privileges, rights, duties and liabilities of members including nominal, associate and sympathizer members;
(g) the consequences of default of members;
(h) conditions regarding sale or disposal of produce of members, wherever applicable;
(i) In the case of Credit Co-operative Societies:

The maximum loan admissible to a member;
The maximum rates of interest on loans to members;
The conditions on which loans may be granted to members and penalties for inapplicability of loans so advanced,
The procedures for granting extension of time for the repayment of loans and advances;

The consequences of default;
The circumstances under which a loan may be recalled:

(j) In the case of non-credit co-operative society, the mode of conducting business, such as manufacture, purchase sale, stock-taking and other like matters;

(k) In the case of a composite co-operative society, that is to say. society having both credit and non-credit functions, matters referred to in clauses (i) and (j);

(1) The mode of holding meetings of the general body and of the committee;

(l) The procedure for expulsion of members;

(m) The manner of making, altering and abrogating bye-laws;

(n) The mode of appointment either by election or otherwise and removal of members of the committee and other officers, if any, their duties and powers;

(o) The Chairman's or President's powers, duties and functions and his removal on his losing support of the majority;

(p) The method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scale of pay and. allowances of salaried officers and servants of the co-operative society and the procedure to be followed in the disposal of disciplinary case against them;

(q) The mode of custody and investment of funds and mode of keeping the accounts and records;

(r) The manner in which penalty should be levied on a member who is found to be guilty of breach of bye-laws;

(s) The disposal of net profits;

(t) Appointment of a provisional committee, where necessary;

(u) The mode of appointment and removal of committee and its powers and duties;

(v) The mode of convening annual and special general meetings, issue of notices, and the business which may be transacted there at;

(w) In the event of winding up of the society, the purpose for which surplus, if any, shall utilized;

(x) The conduct of election to the committee and other bodies of the co-operative society as provided in the bye-laws, including the number of members to be elected by different constituencies and appointment of returning officer:

(y) Any other matter incidental to the management of its business.

(2) A co-operative society may make bye-laws for "H or any of the following matters that is to say:-

(a) the circumstances under which withdrawal from membership may be permitted;
(b) the procedure to be followed in cases of withdrawal, ineligibility and death of members;
(c) the conditions, if any, under which the transfer of share or interest of member may be permitted;
(d) the method of appropriating payments made by members from whom moneys are due:
(e) the authorization of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the co-operative society;
(f) the constitution and maintenance of various funds as required to be maintained under the provisions of the Act, rules and bye-laws;
(g) Constitution of representative general body consisting of delegates of members of the society and the mode of election of such delegates to exercise the powers of the general body and to specify the powers which may be exercised by such representative general body.

Bye-Law of a Co-Operative Society

First Bye-Law of a Co-Operative Society

When a co-operative society has been registered, the bye-laws of the co-operative society as approved and registered by the Registrar shall be the bye-laws of the society.

Model Bye-Laws

The Registrar shall make model bye-laws of each class or sub-class of a co-operative society which may be adopted with or without changes, if any.

Amendment of Bye-law

(1)Subject to the provisions of this rule, the bye-laws of a co-operative society may be amended by-passing a resolution at a meeting of its general body held for that purpose.
(2)The co-operative society shall give due notice in accordance with its bye laws to all the members for considering any amendment thereof.
(3)An amendment shall be deemed to have duly passed, if a resolution in that behalf is passed at a meeting of its general body by not less than two-thirds of the members present there at, and voting.

(a)a copy of the relevant bye-laws in force with amendments proposed to be made in pursuance of the resolution, together with reasons justifying such amendments;

(b)four copies of the text of The bye-laws as they would stand after amendment, signed by the officers duly authorized in this behalf by the committee of the society;
(c)a copy of the notice given to the members of the society of the proposal to amend the bye-laws;
(d)such other information as may be required by the Registrar;

(5)On receipt of the copy of the resolution and other particulars referred to in sub-rule (4), the Registrar shall examine the amendment proposed by the society and if he is satisfied that the amendment is not contrary to the Act or the rules and is in the interest of the cooperative society and co-operative movement, he may register the amendment certified by him under sub-section (3) of section 11. Where the Registrar is of the opinion that the proposed amendment may be accepted subject to any modification, he may indicate to the cooperative society such modification after explaining in writing his reasons therefore. The Registrar shall register or refuse to register the amendment within a period of three months. In case no decision is arrived at within that period of three months, the Registrar may after reasons to be recorded in writing extend the period for another one month. The power of extending the period shall not be delegated to any other person appointed to assist the Registrar. (Amended on 8.8.97).

Manner of Calling upon Society to Make Amendment to Bye-Laws

If it appears to the Registrar that an amendment of a bye-law of a co-operative society is necessary or desirable in the interest of such co-operative society, he may call upon the co-operative society to make the amendment.
The Registrar may by serving a Notice in Form 7 call upon a society to make an amendment within a period of sixty days, by convening a general body meeting of the society. (Amended on 8.8.97)
After the expiry of the period specified in the notice under sub-rule (2), and if the society fails to make the amendment, the Registrar after giving the co-operative society an opportunity of being heard, may register the amendment and issue to the co-operative society a copy of such amendment certified by him with a certificate) signed by him. With effect from the date of registration, the amendment is binding on the co-operative society and its members subject to appeal, if any.

All amendments of the bye-laws relating to the same co-operative society when registered by the Registrar shall be assigned a consecutive number in chronological order and shall be noted in index to the bye-laws to be maintained by the co-operative society in the registration file.

Change in Name of Society

The name of a co-operative society may be changed under section 14 so however that it does not refer to any caste or religious or regional denomination and is not inconsistent with the objects of the co-operative society. (Amended on 9.9.88)
Every change in the name of a co-operative society shall be made by amendment of its bye-laws and shall be notified in the official Gazette.
After the change in the name is approved by the Registrar the Co-operative Society shall send the original registration certificate for amendment to the Registrar, who shall return the same to the cooperative society duly amended.

Change in Liability

1. The change of liability of a co-operative society from unlimited to limited and vice-versa or in terms of multiple of share capital, shall be secured by passing a resolution in that behalf at a general meeting of the co-operative society indicating in clear terms the manner of changing the liability. The co-operative society shall give 30 days’ notice in writing of such meeting to all its members and creditors and shall furnish them with copies of the resolution proposed to be moved at the meeting. After the resolution is duly moved and passed, a copy thereof shall be send to the Registrar within three months of its passing.

2. Every notice to be given by the co-operative society under sub-sec. (2) of section 14 shall be sent by post under certificate of posting or other wise to the address of each of its members and creditors are recorded in the book of the co-operative society. A copy of such notice shall be exhibited on the notice board of the co-operative society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office; and thereupon, notice of the resolution to change the form or extent of its liability shall be deemed to have been duly given to all its members and creditors, notice not being send to their correct address or notice not being received by them, notwithstanding.

3. For the purpose of determining the claims of a member under clause (b) of sub-sec. (4) of sec. 14 the value of a share of a member in a co-operative shall be ascertained as follows:-

a. In the case of a co-operative society with unlimited liability, the value of the share shall be the actual amount received by the co-operative society in respect of such share.
b. In the case of the co-operative society with limited liability, the value of the share shall be the amount arrived at by a valuation based on the financial position of the -co-operative society as shown in the last audited balance sheet, provided that it shall not exceed the amount actually received by the co-operative society in respect of such share.

Explanation - For purposes of this rule, form of liability refers to limited or unlimited while 'extent' of friability means (a) face value of share (b) the multiple of the value of shares subscribed, and (c) value limited as to particular amount (such as guarantee liability) etc.

4. Any member or creditor desiring to exercise his opinion under sub-sec. (2) of sec. 14 shall inform the co-operative society accordingly in writing and where he does not propose to withdraw the entire shares or deposits, the members or creditor shall clearly indicate in writing the extent of his withdrawal. The option once exercised shall be final and shall not be revoked. The co-operative society shall examine and draw up a scheme for orderly payment of all the claims in an equitable manner including shares, the value to which shall be ascertained in accordance with the provisions of sub-rule (3). The scheme may also provide for settlement of claims by mutual agreement. Where Registrar does not approve the scheme on the ground of impracticability or undesirability, the resolution passed by the society under sub-rule (1) shall be ineffective, and the form and extend of liability of a co-operative society shall not be deemed to be changed in accordance with the resolution passed aforesaid.

5. After the Registrar approves the scheme, the cooperative society shall make payments to members and creditors as provided in clause (b) of sub-sec. (4) of sec. 14 and make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of the co-operative society duly passed in the behalf. On receipt of the proposal, the Registrar shall register the amendment in accordance with the provisions of section 11

Amalgamation, Transfer of Assets and Liabilities, Division or Conversion of Societies

1. Every co-operative society desiring to effect amalgamation, transfer of assets and liabilities, division or conversion, shall make an application to the Registrar in that behalf giving full details about such amalgamation, transfer, division or conversion, as the case may be.

2. On receipt of the application referred to in sub-rule (1), the Registrar may invite opinions from members and shareholders or creditors or from any other person who in the opinion of the Registrar is interested in the affairs of the co-operative society and may call for such further information or particulars from the co-operative society as he may deem necessary.

3.On receipt of such application, the Registrar may, after examining the details furnished in the application and after considering all suggestions received by him in response to his invitation referred to in sub-rule (2), and other particulars which he may call upon the co-operative society to furnish, give his approval to the amalgamation, transfer, division or conversion, as the case may be, in the interest of the co-operative society.

4. After the receipt of the approval of Registrar under sub-rule (3), the co-operative society shall convene a special general meeting by giving notice of at least 15 clear days to all its members and creditors and pass a resolution for amalgamation, transfer of assets and liabilities, division or conversion, as the case may be, by two-third majority of the members present and voting at the meeting. The resolution so passed shall contain the purpose and the full scheme indicating how the proposed amalgamation, transfer or division or conversion would be useful to the co-operative society and be given effect to where the scheme involves transfer of liabilities of the co-operative society to another co-operative society, a statement to that effect shall be made in the application to be made under sub-rule (1). Where the scheme involves transfer of liabilities of the co-operative society, the co-operative society shall give written notice in Form 8 to all the members, creditors and other persons whose interests are likely to be affected by such transfer. The notice shall also be published in at least one newspaper in English and one in Vernacular language in circulation in the Union Territory of Delhi and a copy thereof shall be exhibited on the notice board in the office of the co-operative society and the Registrar.

5.Within one month from the date of notice referred to in sub-rule (4), the members, creditors and other persons whose interests are likely to be affected by the transfer of the liabilities of the co-operative society may exercise their option as required by sub-section(4) of section is in writing duly signed by them and delivered or caused to be delivered to the co-operative society, 'failing which they shall be deemed to have assented to the transfer of liabilities of the co-operatives society to another co-operative society. The option one exercised shall be final and shall not be revoked.

6.The co-operative society shall meet in full or otherwise satisfy all claims of members and creditors and other interested persons who exercise the option.

7.For the purposes of determining the claims of a member under clause (b) of sub-section (6) of section 15, the value of the share of a member shall be ascertained as follows:-

(a) In the case of a co-operative society with unlimited liability, the value of a share shall be the actual amount received by the co-operative society in respect of such share.
(b) In the case of a co-operative society with limited liability, the value of a share shall be the amount arrived at by a valuation based on the financial position of the 'Co-operative society as shown in the last audited balance sheet provided that it shall not exceed the actual amount received by the co-operative society in respect of such share.

8.The co-operative society shall submit a report to the Registrar of the action taken by it and request him to give effect to its decision for amalgamation, transfer, division or conversion by registering the amalgamated or converted co- operative society or the new co-operative society as the case may be and canceling the registration of the cooperative societies which have been amalgamated, divided or converted.

9.On receipt of the report from the cooperative society under sub-rule (8) the Registrar shall, after satisfying himself that the procedure has been properly followed, register the amalgamated, divided or converted cooperative societies and cancel the registration of the cooperative societies which have been amalgamated, divided or converted.

Direction by Registrar for Amalgamation, Division and Reorganization of Societies

1. Before issuing any order under Sub-Sec. (1) of Sec. 16 providing for the amalgamation, division or reorganization of any cooperative society or societies, the Registrar shall prepare a draft scheme in respect of such amalgamation division or reorganization staling in particular the manner in which the new committee or committee of the cooperative society or societies resulting from such amalgamation, conversion or reorganization shall be constituted and the bye laws which such cooperative society or societies shall follow. The Registrar shall send a copy on the draft of the order proposed to be issued by him under Sub-Sec. (1) of Sec. 16 to the cooperative society or each of the cooperative societies concerned calling upon-it or class of members thereof or from any creditor or class of creditors to submit such objections or suggestion together with its own or their own suggestions and objections within a period of not less than two months from the date on which the copy of draft aforesaid was received by it or them.

2. The Registrar shall consider all such suggestions and objections and make such modification in the draft order as may seem to him desirable in the light of those suggestions or objections and then issue a final order under sub- section (1) of section 16.

3. Any member or creditor of each of the co-operative societies to be amalgamated, divided or reorganized, who has objected to the scheme of amalgamation, division or reorganization with in the period specifying in sub-rule (1), may apply to the Registrar for payment of his share or interest, if he be a member, and the amount of satisfaction of his dues, if he be creditor. Such application shall be separate and distinct from the objection or suggestion which he may have submitted to the co-operative society or the Registrar under clause (b) of sub-section (2) of section 16. It shall be competent for the Registrar to nominate an officer not below the rank of an Assistant Registrar to investigate such applications and to determine the payments required to be made to the members or creditors as the case may be.

4.Subject to the provisions of the Act, the rules and the bye-laws, the Registrar may by order require the cooperative society concerned to meet in full or satisfy otherwise all due claims of the members and creditors and thereupon the co-operative society shall be bound to meet in full or satisfy otherwise all due claims of the members and creditors within such time as may be specified by the Registrar in the order.

Reconstruction of a Society

1. Where in the case of defunct societies or a co-operative society which is being wound up, a proposal for compromise or arrangement-

between a co-operative society and its creditors:
between the co-operative society and its members, is received, the Registrar may on the application of the co-operative society or any member or of any creditor of the co-operative society or of the liquidator, order reconstruction of the co-operative society in the manner hereinafter given.

2. An application for reconstruction of a co-operative society under sub-rule (1) may be made in Form 9. On receipt of such application, the Registrar may taking into consideration the compromise or arrangement for reconstruction of the co-operative society, if he thinks fit, prepare a draft order indicating -

the manner in which the amounts payable by the co-operative society to its creditors should be paid and the amounts recoverable from its debtors and members should be recovered:
the manner in which the share capital, if any, of such member should be reduced;
the manner in which the scheme of reconstruction should be implemented: and
the manner in which the bye-law of the co-operative society will stand amended in cruder to give effect to the scheme of reconstruction.

A copy of the draft order shall be exhibited on the notice board of the co-operative society and a copy thereof shall be exhibited on the notice board of the office of the Registrar inviting objections and suggestions from, all those interested within a specified time, which shall not exceed one month.

3. After taking into consideration the objections and suggestion (if any) received, the Registrar may issue an order approving such reconstruction or staying further proceedings in respect of such reconstruction. On issue of an order approving the reconstruction, the co-operative society shall stand reconstructed and the bye-laws of the co-operative society shall be modified to that effect and to the extent.

4. After the order referred to in sub-rule (3) has been made by the Registrar the order of the liquidation already passed shall be deemed to have been withdrawn with effect from the date of the order under sub-rule (3).

Appeal against the Refusal to Register the Amendment to Bye-Laws

Where an application for registration of an amendment in the bye-laws of a cooperative society is rejected by the Registrar under sub-section (4) of section 11, the appeal, if any, shaft be made only after the committee has reconsidered the matter in a meeting and has decided to prefer an appeal which shall be signed by the officer of the society authorized in this behalf by the committee. A copy of the resolution of the committee shall be attached with the memorandum of appeal. (Amended on 6.8.97)

Before making an order cancelling the registration of a co-operative society under sub-sec. (5) of section19, the Registrar shall give to the society reasonable opportunity of being heard.

Dissolution

If the Registrar, after an inquiry has been held under section 35 or after an inspection has been made under section 36 or on receipt of an application made by three-fourths of the members of a registered society, is of opinion that the society ought to be dissolved, he may cancel, the registration of the society.
Any member of a society may, within two months from the date of an order made under sub-section (1), appeal from such order.
Where no appeal is presented within two months from the making of an order canceling the registration of a society, the order shall take effect on the expiry of that period.
Where an appeal is presented within two months the order shall not take effect until it is confirmed by the appellate authority.
(5) The authority to which appeals under this section shall lie shall be the 4[State Government]: Provided that the 4[State Government] may, by notification in the 18[Official Gazette] direct that appeals shall lie to such Revenue-authority as may be specified in the notification.

Create a link here to provide for the provisions of Cooperative Societies Rules Prior to Amendments

Provisions of Cooperative Societies Rules Prior to Amendments

Rule 1 (i) : “Cooperative Year” means the year ending on the 30th day of June, or in the case of any co-operative society or class of co-operative society the accounts of which are, with the previous sanction of the registrar, balanced on any other day, the year ending on such day.

Rule 2 (xv): “M.C.L.” means the extent to which a co-operative society may receive deposits, loans and advances from members and non-members:

Rule 2 (xxii): “Person” includes the Government and a co-operative society.

Rule 3 (4): A government servant may become a member of a consumer’s co-operative Society or operative Society. He may becomes member of any co-operative society organized exclusively for the employees of the department concerned and take part in its management deposit, invest or land money to it or borrow from it and stand surety for a borrower. He may also invest or deposit money in any co-operative society or a co-operative bank.

Rule 3(5): Notwithstanding anything contained in the conduct rules of the services for the time being in force by which the Government servants are governed and except as provided in sub-rule (4), no Government servant shall take a loan or an overdraft from more than one co-operative society on behalf either of himself or any other member of his family or stand surety for any person borrowing from such society without the previous permission of the Head of the Department in writing. If any such loan is given in violation of this rule it shall be recovered personally from the members of the committee with Interest and damages.

Rule 3 (6) : A co-operative society and its committee or any of its officers shall not act contrary to this provisions of sub rules (3) to (5), If any Government servant is made a member of a co-operative society in violation of sub-rule (5) his membership will be void.

Rule 4 (d) (ii) : “Housing Finance Co-operative Society” which has its principal object of raising funds, providing finance to its members for construction of houses and or purchase of residential plots according to Scheme and plan approved by preserved authority after mortgage of immovable property in favor of co-operative society.

Rule 7 (2): The Registrar may give, wherever necessary, opportunity to promoters to modify the proposed byelaws before finally registering the co-operative society or rejecting the application for registration of the co-operative society.

Rule 11(1): No co-operative society shall be registered by the name which in the opinion of the Registrar is undesirable.

Explanation - A name which is identical with or too nearly resembles the names, by which a cooperative society in existence has been previously registered, may be deemed to be undesirable by the Registrar.

Rule 15(5): On receipt of a copy of the resolution and other particulars referred to in sub-rule (4), the Registrar shall examine the amendment proposed by the society and if he is satisfied that the amendment is not contrary to the Act or the Rules and is in the interest of co-operative society and co-operative movement, he may register the amendment and issue to the co-operative society a copy of the amendment certified by him under subsection (2) of section 13. Where the Registrar is of the opinion that the proposed amendment may be accepted subject to any modification, he may indicate to the co-operative society such modification after explaining in writing his reason therefore.

Rule 18(1): The name of a co-operative society may be changed under section 14 so however that it does not refer to any caste or religious denomination and is not inconsistent with the objects of the co-operative society.

Rule 24(i): He has applied in writing in the form laid down by the co-operative society or in the form specified by the Registrar if any, for membership.

Rule 24(ii) : His application is approved by the committee of the co-operative society in pursuance of the powers conferred on it on that behalf and subject to such resolution as the general body may in pursuance of the powers conferred on it on that behalf from time to time' pass and in the case of nominal associate or sympathizer member, by an officer of the society authorized in the behalf by the committee.

Rule 25(c) (i): He owns a residential house or a plot of land for construction of a residential house in any of the approved or un-approved colonies or other localities in the Union Territory of Delhi, in his own name or in the name of his spouse or any of his dependent children, on lease hold or free hold basis:

Rule 30(2): A co-operative society, shall dispose of an application received for admission as a member as early as possible and in no case later than the expiration of a period of one month from the date of receipt of the application by the society. In case of refusal to admit, such society shall communicate its decision together with reasons, therefore to the applicant which shall be dispatched to the applicant.

Rule 30(4): The person whose application for membership has been approved by the Managing Committee of a co-op. society shall deposit the membership fee and the amount of the qualifying shares necessary to become a member, within 14 days of the passing of the resolution by the managing committee approving his membership. If no such amount is deposited within the period, the resolution of the managing committee approving the membership of the person concerned shall become void and in-operative.

Rule 36(3): When are solution passed in accordance with sub-rule (1) or (2) is sent to the Registrar or otherwise brought to his notice, the Registrar may consider the resolution and after making such inquiries as he may deem fit, give his approval and communicate the same to the society and the member concerned the resolution shall be effective from the date of such approval.

Rule 36 : Provided that the Registrar may, on a application either by the society or the member expelled and in special circumstances, sanction the re-admission of admission within the said period, of any such member as a member of the said society or of any other society of the same class, as the case may be.

Rule 11(1): A list drawn in accordance with sub-rule (1) shall be supplied by the society to a member on payment of Rs.5/- per copy.

Rule 42: Every co-operative society shall maintain accounts and books for purpose of recording business transactions by it and close then every year on the 30th June, by the 15th July. Each closing entry in the cash book in each ledger account shall be signed by the President, the Secretary and the Treasurer or any other approved members of the society authorized by the, managing committee. The closing balances which are thus authenticated shall be carried forward to the following year commencing on the 1st July. For the purposes of calling the annual general body meeting as provided under section 29, the date fixed for making up the accounts for the year shall be 15th July of each year.

Rule 42 As on 24.5.82: Every co-operative society shall maintain accounts and books for the purpose of recording business transactions by it and close them every year on the 30th June, by the 31st July. Each closing entry in the cash book in each ledger account shall be signed by the President, the Secretary and the Treasurer or any other approved members of the society authorized by the Managing Committee. The closing balances which are thus authenticated shall be carried forward to the following year commencing on the 1st authenticated shall be carried forward to the following year commencing on the 1st July for the purposes of calling the annual general body meeting as provided in section 29, the date fixed for making up the accounts for the year shall be 31st July of each year.

Rule 46(2): Every balance sheet of a co-operative society shall give a true and fair view of the state of affairs of the society as at the end of the co-operative year. Every profit and loss account of the society shall give a true and fair view of the profit and loss of the society for the co-operative year. Every co-operative society shall submit to the Registrar, annually within July each year a copy of each of the statements specified in sub-rule (1).

Rule 48(8): Cash. Cash Balance in hand shall always remain the hands of the President.

Rule 50: After sub rule (3) Explanation : Relative includes any one related to the person concerned or to his wife through a common ancestor not more than a grandfather or any one married to a person so related.

Rule 51 (3) (b) The next annual general meeting shall be held by the society within six months of 15th July following the expiry of the co-operative year in which the first, annual general meeting was held and thereafter an annual general meeting shall be held within six months after 15th July following the expiry of each co-operative year.

Rule 53(3): If within a hour from the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned ordinarily to the same day in the next week at the same time and place but if the meeting is called upon. the requisition of the members (Not the Registrar) it shall stand dissolved.

Provided that at the adjourned meeting, no quorum shall be necessary.

Rule 56 (6) : The notice of an annual general meeting shall be accompanied by a copy of each of audited balance .sheet, profit & loss account together with the audit certificate thereon relating to the preceding year and the report of the committee and budget estimates for the ensuing year.

Rule 57 (2) : Unless the minutes are drawn up and are duly signed by the Chairman immediately on the termination of the meeting, the minutes free from all alteration or corrections, shall be drawn up and shall be signed by the Chairman of the meeting within seventy two hours from the time when the meeting terminated. The minutes so signed shall be evidence of the proceedings of the meeting.

Rule 58 (1) (e): Any other society whose membership exceeds five hundred.

Rule 58 (3) : Every co-operative society shall hold elections of its committee in the manner as prescribed in Sub-Rule (1) or (2) above, as the case may be, within 30 days from the expiry of one year from the date of last election of its committee.

Provided that in case a co-operative society fails to conduct Election of its committee within the period specified above, the Registrar may after issuing the requisition under section 30(1) of the Act, appoint an election officer to call a Special General Body Meeting of the co-operative society and hold election of its committee provisionally within 60 days from his appointment: Provided for the reason beyond the control of the election officer he may conduct the election of the committee, after the expiry of 60 (sixty) days by taking extension of time from the Registrar. The Registrar may grant extensions of time for conducing election specifying the reasons for such extension. (Added on 9.9.88).

Rule 59(a): He is in default to any co-operative society in respect of any sum due from him to the society or owes to any co-operative society an amount exceeding his maximum credit limit;

Rule 59(a): He has committed any offence involving dishonesty or moral turpitude prior to the date of scrutiny of nomination paper he has, during a period of 12 months preceding the date of filing of nomination papers remained inactive as member or has been carrying on, through agencies other than the co-operative society of which he is a member the same business as is being carried on by the co-operative society.

Rule 60: He is a near relative of a paid employee of the society provided that if any question rises whether or not a member is near relative of the paid employee, it shall be referred to the Registrar whose decision thereon shall be final.

Rule 60: Explanation-For purpose of clause (d) of rule 59 and clause (e) of rule 60, a person convicted of an offence involving dishonesty or moral turpitude shall remain disqualified for being a member of the committee of a co-operative society for a total period of five years from the date of the commission of the offence and not from the date of conviction.

Rule 62: Terms of Office of Members of Committee. (1) Without prejudice to the provisions of sub-section (3) of section 31, the bye-laws of every co-operative society shall provide that the term of office of all the members of its committee shall expire on the same date or that a certain proportion of the members of its committee shall retire in each year. In the former case all the members of the committee including those selected against casual vacancies whether representing society or individuals, shall vacate the respective offices on the same date their successors are elected as members of the committee. In the latter case, the members of the committee due for retirement in each year, including those elected in their places in casual vacancies, shall vacate their office on the date specified in that year but will continue to hold office till their successors are elected.

Rule 62 As on 24.5.82: Without prejudice to the provisions of sub-section (3) of Section 31 and notwithstanding anything contained in the bye-laws, certain proportion of members of its committee, not less than 1/3, shall retire in each year. The members of the committee due for retirement shall vacate their offices on the date specified in that year but will continue to hold office till their successors are elected: Provided that, the retirement of 1/3 members during the first two years would be by draw of lots by Managing Committee.”

Rule 62(2): A committee shall meet as often as required but a meeting shall be held at least once in every month

Rule 65(3): Notice of every meeting of the committee shall be given to every members of the committee in writing.

Rule 65(3): Notwithstanding anything contained in the bye-laws, the committee of a co-operative society shall cause minutes of all proceedings of its meetings to be entered in the book for the purpose in hand written at the spot in the presence of members present and voting. The minutes of each meeting shall contain the names of the members present, names of the members, if any, dissenting from or not concurring in any resolution. At the end of the minutes, each member present and voting shall sign them. If the minutes are not made and recorded in this manner, they shall not be considered valid and it shall be deemed that no such meeting was duly called and held.

Rule 68 (1) : Without prejudice to the generality of the powers given in Explanation below section 37, all agricultural credit and non-credit co-operative societies shall come within the purview of section 37 from the commencement of the rules.

Rule 68(1): No co-operative society shall receive deposits, loans secured or unsecured, advances or over drafts against hypothecation or pledge of goods from members or non-members which exceed the M.C.L. fixed from time to time in general meeting subject to the approval of the Registrar who may at any time reduce it.

Rule 70 (1) : Maintain such liquid resources and in such form as may be specified from time to time by the Registrar, and No dividend shall be declared or paid except out of net profits left after making the contribution towards reserve fund required to be made under the provisions of section 46 and sub-rule (3). In no co-operative society, the dividend shall exceed 10 per cent per annum on paid-up share capital. Dividend shall be payable at such rate not exceeding this limit to the registered share holder, as may be approved by the general body and not otherwise. Shareholders/members will have no right to the dividend unless declared and approved by general body. The dividend shall be paid to all members within three months of the approval by the general body. No dividend shall be paid by the co-operative society while any claim due from the co-operative society to a depositor or lender remains unsatisfied.

Rule 80: Every co-operative society shall credit a sum calculated at two percent of its net profits subject to a maximum of ₹ 2,500 every year for contribution to the co-operative Education Fund to be administered by the Registrar. The Registrar may frame regulations for the utilization and the administration of the Fund. This fund shall be kept with the Financing Bank. Anysu6h amount payable by the society shall be a charge on the fund of the society.

Rule 85(1) A Co-operative society shall pay on or before the 31st March of each year, an audit fee at such rates as may be fixed by the Registrar with the prior approval of the Lt. Governor.

Rule 86(1) An order authorizing enquiry under section 55 or inspection under section 56 shall, among other things contain the follows:-

Rule 86(2) A copy of every order authorizing enquiry under section 55 or inspection under section 56 shall be supplied to the Financing Bank.

Rule 87(1) On receipt of the report made by the auditor, or person authorized to make enquiry under section 55 or inspection under section 56, or by the liquidator or otherwise, the Registrar or any other person authorized by him may make such further enquiries as he may deem necessary regarding the extent to which the person who has taken any part in the organization or management of a society or any deceased past or present, officer of the society has misapplied or retained or become liable to accountable for any money, property of the society or has committed misfeasance or breach of trust in relation to the society.

Rule 88(2): A party, referring the dispute under sub section (1) of section 60 to the Registrar shall pay a fee of Rs.2 which shall be deposited in advance in the Financing Bank in the name of the Registrar in “Settle and Executive Service Expenses Fund”: the original of pay-in-slip for the deposit of this account shall be attached with the application for the reference of a dispute. The application for reference of a dispute shall be delivered in the office of the Registrar personally and receipt obtained or by registered post along with as many spare copies of the application as there are parties on the opposite side.

Rule 89(1) : The arbitrator shall make a memorandum of the statements of the parties who attend and of such witnesses as are examined, and upon the evidence so recorded and after consideration of any documentary evidence produced by either party shall make an award in accordance with justice, equity and good conscience; he shall record his award in writing, sign and date it and shall communicate it to the parties.

Rule 91 (2) (a) Gazetted Officers of any department of Government; or

(b) Officers, paid staff or member of any co-operative societies:

Rule 92: TABLE (A) (i) (b): In case in claims for ₹ l00 or above 2-1/2 percent of the claim subject to minimum of ₹.25 and Maximum of ₹ 500

Rule 92 (ii) : In case of dispute of non-monetary nature a fee of not less than ₹100 and not more than ₹.500 in each case, as may be considered reasonable by the Registrar.

Rule 92: TABLE A: (i) (b).as on 24.5.82

In case of claims for ₹100 or above. 3% of the claim subject to minimum of ₹25 and maximum of ₹ 500

Rule 92 : TABLE A (ii) as on 24.5.82: In case of dispute of non monetary nature......a fee of not less than ₹100 and no more than ₹500 in each case, as may be considered reasonable by the Registrar

Rule 111(3): As on 2.4.73 soon after receipt of the above application, the Registrar shall call for the original record of arbitration and shall check up the contents of the application with reference to original recorded. If he is satisfied about the correctness and geniuses of the application, he or any officer authorized by him shall issue the certificate in Form 22 to the decree holder.

Rule 111(3): As on 24.5.82 soon after the receipt of the above application, the Registrar shall call for the original record of arbitration and shall check up the contents of the application with reference to original record. If he is satisfied about the correctness and genuineness of the application, he or any officer authorized by him shall issue he certificate in Form 22 to the decree-holder. After issue of the recovery certificate, the decree holder shall not accept any payments directly against which the recovery certificate has been issued.

Rule 111(4): Soon after the issue of the certificate referred to in sub-rule (3) the decree holder shall apply in form 23 to the Recovery Officer delivered in person and a receipt obtained or sent by registered post. The application shall be accompanied by:

a certified copy of the award; and
original certificate issued by the registrar under sub-rule (3)
receipted pay-in-slip for deposit of execution fee in the Financing Bank.

Rule 112(1): All amounts recovered from the judgment debtors by the Recovery Officer shall first be deposited in the current account to be kept in his official designation in the Financing Bank which shall be operated by him. The payment to decree-holder of all amounts recovered on his behalf during the course of execution proceedings shall be made by the Recovery Officer by crossed cheque drawn on 1h« above current account against the deposits relating to the decree holder after deducting the recovery fee of 5 per cent on the gross amount recovered.

Schedule (II): Under Rule 58: The Committee shall prepare a list of members as it stood on the date thirty days prior to the date fixed for the poll and publish copies of the said list by affixing them upon the Notice Board at the Head Office of the Society and in its branches, if any, not less than ten days prior to the date fixed for nomination.

The list shall specify the admission number and the name of the member, the name of the father or husband as the case may be and the address of such member. A copy of the list shall be supplied by the society to any member on payment of such fee as may be specified by the Committee. Where no fee as may be specified the secretary, or any other person authorized by the bye-laws, they shall supply such list on payment of any amount of Rupees five only.

Schedule (IV): Regulation 7(4) Under Rule 85: On receipt Of the above statement, Asst. Registrar (Audit) shall record the payments in relevant accounts of the society and draw a cheque for the amount representing the total of all the amounts shown in the above monthly statement in favor of the Registrar, Co-operative Societies and send it to the Cashier of his office for deposit into Government Account.

Rule25 (c) (i) He owns a residential house or a plot of land for the construction of Residential house in any of the approved or un-approved colonies or other localities in the Union Territory of Delhi, in his own name or in the name of his spouse or any of his dependent children, on leaseholder free hold basis provided that disqualification as laid down in sub-rule (1) (c) (1) shall not be applicable in case of persons who are only co-shares of joint ancestral properties in congested localities (slum areas) whose share’s less than 66.72 sq. meters (80 Sq: yards) of land

Provisions of the Cooperative Societies Rules Prior

To Amendments before 6th August, 1997

Rules 6 (d) : The scheme showing the deals explaining how the working of the Cooperative Society will be economically sound and where the scheme envisages the holding of immovable property by the Cooperative Society, the description of immovable property proposed to be purchased, acquired or transferred to the cooperative society.

Rule 15 (5): “Period of Amendment fixed under the Rule was 6 months and extended period was 2 months.”

Rule 16 (2) : The Registrar may by serving a Notice in Form No. 7 call upon a Society to make an amendment within a period not exceeding 60 days

Rule 23: Where an application for registration of an amendment in the Byelaws of a cooperative society is rejected by the Registrar under Sub-sec. (4) of Sec. 11 of the appeal, if any, shall be made only after a meeting of the General Body has reconsidered the matter and has decided to prefer the appeal which shall be signed by the officer of the society authorized in this behalf by the General Meeting. A copy of the resolution of the general body shall be attached with the memorandum of appeal.-

Rule 24 (iii): His application is approved by the Committee of the Cooperative Society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate, or sympathizer member by an officer of the society authorized in that behalf by the Committee.

Rule 28: No individual, being a member of a primary cooperative society of any class shall be a member of any other cooperative society of the same class without the general or special permission of the Register, and where an individual has become a member of two cooperative societies of the same class either or both of the cooperative societies shall be bound to remove him from membership upon written requisition from the Registrar to that effect.

Rule 34 A : Subject to the provisions of the Act and these Rules, the membership of a member of a cooperative housing society may be transferred to a person who has acquired free hold rights in respect of a property related to such membership in that society.

Rule 36(1) : Notwithstanding anything contained in the byelaws, any member who has been persistently defaulting in payment of his dues or the payment of claims made by a housing' society for raising-funds to fulfill its object has been failing to comply with the provisions of the byelaws regarding sales of his produce through the society or, other matter in connection with dealing with the society or who, in the opinion of the committee, has brought disrepute to the society 6rhe has done other acts detrimental to the interest or proper working of the society, the society may, by a resolution (}assed by a majority of not less than three fourth of the .members entitled to vote who are present at a general meeting, held for the purpose, expel a member from the society.

Provided that no resolution shall be valid, unless the member concerned has been given an opportunity of representing his case to the general body and no resolution shall be effective, unless it is approved by the Registrar.

Rule 36(2): Where any member of a cooperative society proposes to bring a resolution for expulsion of any other member, he shall give a written notice thereof to the President of the society. On receipt of such notice or when the committee itself decides to bring in such resolution, the consideration of such resolution shall be included in the Agenda for the next general meeting and a notice thereof shall be given to the member against whom such resolution is proposed to be brought, calling upon him to be present at the general meeting, to be held not earlier than a period of one month from the date of such notice and to show cause against expulsion to the general body of members. After hearing the member, if present or after taking into consideration any written representation which he might have sent, the general body shall proceed to consider the resolution.

Rule 37(2): A list drawn in accordance with sub-rule (1) shall be supplied by the society to a member on payment of ₹ 1/- per 100 members or part thereof.

Rule 38: No member shall be eligible to vote at the meeting fixed for any election. If on the date, thirty days prior to the date of such meeting, he is a defaulter against whom degree has been issued under section 61.

Rule 41-A : Notwithstanding anything contained in these rules or the bye-laws of the cooperative Group Housing Societies, vacancy or vacancies arising as a result of resignation, expulsion or cessation of membership in such societies shall until the allotment of land is made to them by Delhi Development Authority, not be filled-up. Vacancy or vacancies arising after the allotment of land to such societies shall be filled-up from amongst the willing registrants for flats with the Delhi Development Authority under its Self Financing Schemes or amongst the members of other cooperative Group Housing Societies which are yet to be allotted land by the Delhi Development Authority or from amongst the members of such societies, as have not reached the stage .of construction of flats. (Amended on 19.8.91) Declared invalid by D.H.C. in C.W. No. 4184/92 of 1993).

Rule 50(iii): Except with the previous approval of the Registrar, no relative of any member of the committee or the Secretary or the Treasurer of a Cooperative Society or a member of the committee of Financing Bank to which the society is indebted shall be appointed as its paid staff.

Explanation: “Near Relative" included .any one related to the person concerned or to my wife through a common ancestor not more than a grandfather or any one married to a person so related. (Amended on 13.8.84)

Rule 53(3): If within one hour from the time appointed for the meeting a quorum is not present the meeting shall stand adjourned for one hour on the same day which should be specified in the notice calling the meeting, but if the meeting is called upto the requisition of the members of the society (not the Registrar) it shall stand dissolved, (Amended on S.8.88) provided that at the adjourned meeting, no quorum shall be necessary.

Rule 58(5): In all Cooperative societies, including the class of Cooperative Societies, prescribed for the purpose of sub-section (1) of Section 31, one post shall be reserved for women in the Managing Committee (Added on 8.11.93)

Rule 59 (a): He is in default to the society in respect of any sum due from him to the society or owes the society an amount exceeding his maximum credit limit.

Rule 59(d): He has committed any-offence involving dishonesty or moral turpitude during a a period of 5 years prior to the date of scrutiny of nomination paper. (Amended on 24.5.82 1 13.1.83)

Rule 59 (k): He has not completed minimum period of six months from the date of acquiring membership of society in case of an urban cooperative Bank. (Added on 9.9.88)

Rule 62: Without prejudice to the provisions of sub-section (3) of Section 31 of the Act and notwithstanding anything contained in the byelaws of the society, 1/3rd of the members of the committee shall retire in each year. The members of the committee due for retirement shall vacate their office on the date specified in that year but will continue to hold their office till their successors are elected.

Provided that retirement of 1/3rd members during the first two year should be decided by draw of lost by the managing committee. (Amended on 9.9.88)

Rule 64 : Notwithstanding anything contained in the byelaws of the Financing Bank, the maximum strength of the committee of the Financing Bank shall be fixed by the Registrar, he will also be competent to fix the proportion of the representation of various classes of the societies in the committee of the Finance Bank and proportion of individual members to society members on the committee and also prescribe conditions as to the holding of shares and deposits in the Financing bank to make an individual eligible for being elected on its committee. No defaulter society shall be eligible for representation on the committee of the Financing Bank.

Rule 65 (a) : If a member of the Committee of a Cooperative Society fails to attend its three consecutive meetings; he shall be deemed to have vacated his office and from that date shall cease to be a member of the committee. The vacancy can be filled by co-option by other members of the Committee.

Rule 65 (5): Notwithstanding anything contained in the byelaws of any cooperative society, the committee of a cooperative society shall cause minutes of all proceedings of its meeting to be entered in the book for the purpose of handwritten at the spot in the presence of members present and voting, the minutes of each meeting shall contain the names of the members present, names of members, if any, dissenting from or not concurring in any of its resolution. At the end of the minutes each member present and voting shall sign them. If the minutes are not made and recorded, in this manner they shall not be considered valid and under such circumstances, it shall be presumed that no meeting was held.

Provided on the request from a cooperative society, the Registrar may relax any of the conditions mentioned above subject to such conditions, as he may deem fit, under the circumstances of each case. One of the conditions will be that minutes will be circulated before the next meeting.

Rule 68 (1) : No cooperative society shall receive deposits, loans secured or unsecured, advances or over drafts against hypothecation or pledge of goods from non-members which exceed the M.C.L. fixed from time to time in general meeting subject to the approval of the Registrar who may at any time reduce it.

Rule 68(1): Without prejudice to generality of the powers of the Registrar under sub*rule (1) the M.C.L. of the cooperative society may be fixed by the genera] body at any limit but not exceeding the limits given below:-

Rule 79 (1) : No dividend shall be declared or paid except out of net profits left after making the contribution towards reserve fund required to be made under the provisions of section 46 and sub rule (3). In no cooperative society, the dividend shall exceed 12 percent per annum on paid-up Share capital.

Rule 81 A: A Cooperative society may with the sanction of the Registrar, invest its fund, out of its net profits in the National Defense Fund or other funds of national importance.

Rule 82 (b): In the shares of the Reserve Bank.

Rule 82: A cooperative society may, subject to the approval of the Registrar and to such conditions as he may impose, use its business:-,

(i)upto one fourth of its reserve fund when the owned capital is less than the borrowed capital:
(ii)upto one half of its reserve fund when the owned capital is equal to or exceeds the borrowed capital; and
(iii)the entire reserve fund when there is no borrowed capital.

Rule 84(1) : The audit of the accounts of societies shall be conducted by Departmental Auditors appointed by the Registrar or by certified auditors appointed by the Registrar from time to time on such terms and conditions as he deems fit.

Rule 88(2): A party, referring the dispute under sub-section (1) of section 60 to the Registrar shall pay a fee to ₹10/- plus process fee at the rate of 2.50 for each party which shall be deposited in advance in the Financing Bank in the name of the Registrar in “Swith ettlement and Executive Service Expenses Fund”: the original pay-in-slip for the deposit of this account shall be attached the application for reference of a dispute. The application for reference of a dispute shall be delivered in the office of the Registrar personally and receipt obtained or by registered post along with as many spare copies of the application as there are parties on the opposite side.

Rule 88 (4): If the Registrar is satisfied that the application is maintainable under Sec. 60, he shall by an order, admit the application for decision of the dispute in accordance with the Act and Rules and record his findings on the following points:-

Rule 89 (5) : The arbitrator shall have power to order the expenses of determining a dispute or the cost of either party to be paid by such party or parties to the disputes as he may think fit.

Provided that the expenses or the cost so awarded shall not exceed 2½ per cent of the awarded amount over the arbitration fee deposited by the claimant with the Registrar.

Rule 92 (i) (b): In case of claims for ₹100/-or above......3% of the claims subject to min minimum of ₹25 and maximum of ₹-750. (Amended on 9.9.88)

Rule 93: In the proceedings under rule 89 & 92, any party to the dispute may take the assistance of any other person to represent the case on his behalf but may not engage a legal practitioner for the purposes. If a legal practitioner is a member of a cooperative society and represents the society in these proceedings the other party to the dispute staff have a right to be represented by a legal practitioner. (Declared invalid by Delhi High Court in Civil Writ No. 196 of 1981)

Rule No. 7: I am to request to consider this / these amendment/ amendments In the Interest of your society and to call upon you this notice under rule 16 (2) of the Delhi Cooperative Societies Rule, 1973 10 take necessary steps to make the amendments to the byelaws of your society within ________ days from the date of receipt of this notice, failing which action will be taken as provided under .section 11 (2) of the Delhi Cooperative Societies-Act, 1972

Schedule-II: The Committee in office shall meet sixty clear days in advance of date of expiration of its terms and by resolution determine, the date, time and place for convening a general body meeting for the conduct of election of its successor committee.

Schedule-II

(para 3) : A copy of the list shall be supplied by the Society to any member on payment of such fees as may be specified by the Committee. Where no fee has been specified, the Secretary or any other person authorized by the Bye-laws, shall supply such list on payment of any amount of Rupees Five only).

Organizational Chart of the registrar of the co-operative society

The Registrar, Cooperative Societies, appointed by the Lieutenant Governor, Delhi under Delhi Cooperative Societies Act, 2003, heads the Cooperative Department and plays a pivotal role in monitoring the functioning of Cooperative Societies registered under the Act. The Lieutenant Governor also appoints other persons to assist the Registrar and has designated them as Joint Registrar, Deputy Registrar, Assistant Registrar and other field/ministerial staff. The Office of the Registrar is working on nine-district pattern and has nine Zones headed by Assistant Registrar level Officers. Each zone handles the matters of various cooperative societies on the basis of their registered office located in that particular zone. All issues concerning in particular society are examined at the zonal level only.

Method of dealing with complaints:

When a complaint is received in the Cooperative Department, it is examined in the concerned branch/section. If need be, the comments of the concerned society/official/non-official is called for. After examination, if required inspection u/s 61 or inquiry u/s 62 or surcharge proceedings u/s 66 are ordered by the Registrar. If the complaint falls within the purview of Section 70/71, the complainant is accordingly advised to file Arbitration case.

S. No.	Particulars	Number of days
1.	Approval of proposal of Registration of a new Cooperative Society	90 Days
2.	Amendments in Bye-laws of the Cooperative Society as per initiative of the Registrar	90 Days
3.	The settlement of disputes which may be referred for Arbitration.	90 Days
4.	Approval of resignations and enrollments of members in Housing/Group Housing Society	60 Days
5.	Approval for expulsion of Members	180 Days
6.	Under Right to Information Act, any member or creditor having interest in the affairs of the Cooperative Society may seek information/certified copy of any Documents	30 Days
7.	Others (Miscellaneous matters)	60 Days

Financial Assistance under the State Plan Schemes and the Centrally Sponsored schemes

In order to promote the activities of the Registered Cooperatives Societies, the Cooperative Department have prepared many schemes which are in vogue in respect of sectors, such as, women welfare, SC/ST, Thrift & Credit Societies, Primary cooperative stores. The eligible societies are given the financial assistance under the following State Plans schemes and Centrally Sponsored Schemes:

Financial Assistance under the State Plan Schemes and the Centrally Sponsored schemes

State Plans Schemes

Organizing Sehkari Bazaars

Consumption Credit to SC/ST members

Market Development Assistance to Leather Cooperatives

Financial assistance to Women Cooperatives

Financial assistance to Labor and Construction Cooperatives

Centrally Sponsored Schemes

Assistance to Weaker Sections of the society.

Special schemes for SC/ST

Kisaan Credit Card schemes

Construction of cold storage in the cooperative sector availing of financial assistance through National Cooperative Development Corporation

Award for Cooperative Excellence

Multi-State Cooperative Societies Act

The Multi-State Cooperative Societies Act (MSCS Act) is legislation which provides a regulatory mechanism for cooperative societies. The Act applies to cooperative societies which conduct operations in multiple states. The Act mentions the procedure to register a multi-state cooperative society and the contents which should be available in the bye-laws of a cooperative society. The Act also specifies the other regulatory guidelines which should be followed by all cooperative societies registered under the Act. Registration under the MSCS Act is voluntary. However, the Act mentions the grounds under which registration becomes necessary.

Cooperative societies are listed under list II of the seventh schedule to the Indian Constitution. Hence, cooperative societies fall under the category of a state subject. As a result, the state governments have the right to form laws governing cooperative societies. The state governments formulate laws for cooperative societies depending upon the circumstances unique to each state. Thus, the MSCS Act is a legal framework which applies in addition to the cooperative society laws passed by the various states. The advantage of registering under the MSCS Act is similar to the benefits acquired by registering a company. A registered multi-state cooperative society has the privileges of limited liability, separate legal identity, and the ability of members to transfer their membership. Government-owned companies are allowed to subscribe for membership in a registered multi-state cooperative society. Contribution of capital by the government enhances the credit-worthiness of the cooperative society.

Objectives of the MSCS Act

To encourage the public to form cooperative societies voluntarily
To provide a legal platform which allows cooperative societies to function as democratic institutions
To enable the members of cooperative societies to promote their social and economic betterment
To provide functional autonomy for matters connected with governance and administration of cooperative societies
To facilitate the achievement of the common economic interest for which the cooperative society was formed

To serve the interests of the Below Poverty Line (BPL) category of citizens and empowering them to derive economic benefit through the principle of self-help and mutual help
To establish a framework for the provision of monetary support to the members during times of financial distress
To formulate and implement guidelines for the formation of cooperative societies among agriculturists, artisans and individuals having limited means to sell the products manufactured.

Contents of Bye-Laws

The bye-laws of a cooperative society are the provisions which define its roles and functions. The bye-laws are agreed upon by the members at the time of forming the society. Once the bye-laws are registered, any change can be made only after obtaining the approval of the registrar. The MSCS Act provides the guidelines on the contents which should be available in the bye-laws. The contents should include the following:

The states in which the cooperative society is conducting its operations
The scope of business and objectives of the cooperative society
The services which the cooperative society is providing to its members
The eligibility criteria and procedure which should be followed for obtaining membership in the cooperative society, and also for cancellation and transfer of membership
The rights and obligations among the members towards each other and also towards the cooperative society
The rights and obligations among the members towards each other and also towards the cooperative society
The sources from which the cooperative society is eligible to raise funds and the purposes towards which the funds can be applied
The officers who are authorized to sign documents and enter into agreements on behalf of the cooperative society
The powers and functions of the promoter of the cooperative society
The provisions relating to the appointment and removal of auditors
The nomination procedures which should be followed in case of death of a member

Check List regarding documents to be submitted with the proposal for New Registration

A.Check List regarding documents to be submitted with the proposal for the registration of a Multi state Cooperative Society.

Form 1: To be submitted in the format annexed with the MSCS Act 2002 along with the documents required under Form I.
A certificate from the bank stating credit balance there in favor of the proposed multi-state co-operative society.
A scheme explaining how the proposed multi state co-operative society has reasonable prospects of becoming a viable unit.
Four copies of bye-laws in original.
Proposed area of operation for registration shall initially be permitted for two contagious states only.
List of at least 50 members from each state. The list has to be submitted in the format annexed with the MSCS Act 2002 along with the copies of ID proofs of the members duly attested by Chief promoter.
Certified copies of the resolutions passed by the proposed society along with the certified copy of the resolution of the promoters which shall specify the name and address of one of the applicant(s) to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.
Contact number and e-mail address of the Chief Promoter or Society on cover page.

B.For societies having objects related to thrift and credit and for multi-purpose societies following additional documents are required to be submitted along with documents mentioned at point [A] above:

No objection Certificate from the Registrar of Cooperative Societies of the States/U.T. where the area of operation of the society is proposed to be confined.
A certificate to the effect that the credentials of the Chief Promoter/Promoters have been verified by the Registrar of Co-operative Societies of the state where the head office is proposed to be located.

All the documents to be submitted in original along with the signatures of the Chief Promoter/ Promoters on each page.

Note: Societies which are already registered under the MSCS Act, 2002 and are desirous of expanding their area of operations falling under category (B) above shall be required to submit an No Objection Certificate NoC as mentioned at [B](1)

Circumstances for Mandatory Registration

Registration of cooperative societies is not mandatory under the MSCS Act. Registration is required only under the following circumstances:

When there is a need to hold property and enter into contracts in the name of the society
When there is a need to initiate and defend suits and other legal proceedings in the name of the society
When the members of the cooperative society are residing in more than one state
When there is a need to advance loans exceeding five thousand rupees to the members of the society without sanction from the registrar
When there is a need to advance loan to another cooperative society after obtaining permission from the registrar
When there is a need to obtain loans from banks by pledging property in its name
When the members of the cooperative society who are residing in a particular state exceeds fifty
When another cooperative society is proposed to be enrolled as a member of a cooperative society

Conditions for Registration

The cooperative society should serve the interests of the public in more than one state
The bye-laws of the cooperative society should lay down the process of bringing about social and economic upliftment of the members

The cooperative society should have at least fifty members for each of the states for which registration is requested
The bye-laws of the cooperative society should not be in contravention of the provisions of the MSCS Act
The cooperative society should pursue the goal of mutual help and cooperation among the members as the primary justification for its existence

Procedure for Registration

A cooperative society may register under the MSCS Act by making an application to the Central Registrar of Cooperative Societies. The application should be made as per the prescribed format. The format is given below for reference:

The following documents should be attached to the application:

The list of members classified state-wise, along with the name, address and date of birth of each member (The registration will be allowed if there are at least fifty members for every state.)
Copies of Aadhar Card and PAN Card for all members, attested by the promoter of the society
The list of states in which the society is currently conducting operations and the states in which the cooperative society plans to conduct its operations in the future (For the first two years from the date of registration, the society is allowed to conduct operations in two states only.)

Certified copies of the resolution passed by the society for the appointment of the promoter
A certificate from the bank should be obtained stating the specified particulars. The certificate should be obtained from each nationalized bank in which the applicant has an account. The particulars are the following:

The account balance of the applicant as on the date of application
The solvency position of the applicant as on the date of application
Whether the applicant has availed of any overdraft facility (ODF) with the bank during the past three financial years (FYs)
In case an ODF was availed, the number of occasions during the preceding three FYs when the ODF has crossed the permissible limit
In case there were instances of violation of the permissible ODF limit, the amount and reasons for the violations

Audited Financial Statements for the preceding three FYs (The requirement will be waived in case the cooperative society has not completed three years of existence.)
The contact number and e-mail address of the promoter should be written on the top of the application in bold characters. There is no need for payment of fees for the application.

The Multi-State Co-operative Societies (Amendment) Bill, 2010

The Multi State Cooperative Societies (Amendment) Bill, 2010 was introduced in the Lok Sabha on November 15, 2010 by the Minister of Agriculture, Consumer Affairs, Food and Public Distribution, Shri Sharad Pawar. The Bill was referred to the Standing Committee on Agriculture (Chairperson: Shri Basudeb Acharia), which is scheduled to submit its report within three months.

The Bill amends the Multi State Cooperative Societies Act, 2002, which regulates multi-state cooperative societies i.e. cooperatives which serves the interest of members in more than one state. This includes federal cooperative societies whose membership is available only to a cooperative society or a multi-state cooperative society and 21 national cooperative societies specified.
The central government may appoint a Central Registrar of Cooperative Societies. A multi-state cooperative society may be registered if its main object is to serve the interest of members in multiple states, its bye-laws provide for social and economic betterment of its members in accordance with the cooperative principles.
The key amendments to the Act pertain to time limit for disposal of application for registration, distribution of shares, constitution of interim board, holding of elections, constitution of fund and dispute settlement.
Disposal of registration: The Act states that the Central Registrar has to dispose off an application for registration within four months. The Bill adds that the time may be extended to five months after giving reasons in writing.
According to the Act an application shall be refused within four months. If it is not disposed within that period, the application shall be deemed to have been refused. The Bill increased the time period to five months and adds that if an application is not disposed off within the time period, it shall be deemed to have been accepted as a member.

Distribution of shares: The Act states that the shares of a cooperative society are redeemable by a member according to the provisions of the bye-laws. The redemption of shares shall on face value of shares. The Bill adds the proviso that the cooperative society may refund the share capital held by the government. The redemption of shares shall be on face value or book value of shares, whichever is higher.
Constitution of interim board: The Bill allows the Central Registrar to declare any multi-state cooperative society as sick. The central government may, on the recommendation of the Registrar appoint an interim board for a maximum of five years. The Central Registrar can also declare a cooperative to be viable within the five years. The board of directors before the cooperative was declared sick shall be reinstated.
Elections: The Act states that elections shall be conducted by the existing board. The Bill amends this to state that the central government may appoint a Cooperative Election Authority to conduct elections in cooperative societies to be prescribed.
Constitution of Fund: The Bill states that the central government shall set up the Cooperative Rehabilitation and Reconstruction Fund. A cooperative society shall credit 0.005% to 0.1% of its turnover to the fund, provided it does not exceed ₹ 3 crores per year.
Dispute settlement: Under the Act, all disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996. The Bill amends it by stating that all disputes shall be referred to the Central Registrar. If there is a question as to whether a dispute touches the constitution or management of a society, it shall be decided by the Central Registrar and shall not be questioned by the court.

Credit Co-operative Society

A society which is formed by a group of different types of individuals with a same motive to promote self sufficiency is known as a Co-operative Society. When there are different individuals carrying out such motives, then the society is understood as a Credit Co-operative Society. Such societies are governed by the provisions of the Multi State Cooperative Societies Act, 2002. This act along with different rules helps to promote the betterment of the society. This would also provide functional autonomy for societies to operate properly. The government in order to promote such requirements passed ‘The Multi State Cooperative Societies Bill’ which received royal assent from both the houses of the parliament before it became a law.

Hence co-operative societies are formed for the betterment of the community. A Credit co-operative society includes providing different forms of credit to its members. This would also include providing a loan and other forms of credit facilities to its members. Hence this type of society is formed as a financial co-operative and under the control of the members. Usually this type of society is formed to provide reasonable computation of financial products to its members. This would include provisions of loans and interest related to loans. Apart from this, the Credit Co-operative society would also accept deposits from its members.

There are two types of Credit Co-operative Societies:

Agriculture Credit Societies

These forms of societies is found in villages. Such societies would provide loans to local artisans and farmers.

Non-Agriculture Credit Societies

Non-Agriculture Credit Societies are found in Metropolitan and Urban Areas. Such loans are provided to individuals in these areas.

Tier Category of Credit Co-operative Society

Primary Credit Co-operative Society

Such societies are present in a particular area.

Membership to this society is usually open to all types of individuals.

Central Credit Co-operative Society

Membership in this type of society is limited only to few people. Usually, these would be members of the banking union and other forms of union. Such types of societies are usually formed at a district level.

State Credit Co-operative Society

This type of society is usually involved in accepting deposits from particular class of individuals.

Benefits of Registering a Credit Co-operative society

Promotes Self Sufficiency

By registering this form of entity, the interests related to promoting self sufficiency can be established. This can be achieved as members would be able to avail different forms of loans with less interest rate. In comparison to this, the interest rates offered by a traditional bank would be quite high.

Less compliance

This form of society can be easily formed with less than 10 members. Also to form this society there is only basic registration with the Multi State Cooperative Societies Act, 2002. Hence such societies can be easily established with less compliance and no burden.

No Barriers to Membership

Any individual can be a member of the society. Hence there are no barriers related to membership of this form of society. An individual is not restrained on the basis of a particular requirement to be a member.

Limited Liability

The liability of the credit co-operative society is limited. This means that the members do not have any personal liability for acts which are carried out by the society. Hence by forming this society, the personal assets of an individual can be safeguarded properly.

Same Rights

The constitution of this form of society is based on the members. Hence all the members can take decisions related to their respective rights and liabilities of the society. All members have their rights related to voting on particular matters.

Eligibility Criteria for Forming a Credit Co-operative Society

Bank Certificate

The members of the society must have a letter from the bank stating that credit balance is present to satisfy the requirements related to the credit cooperative society.

Minimum Number of Members

There has to be minimum number of members to form this type of society. For a state there has to be minimum of fifty members.

Minimum Number of Directors

The board members or the number of directors have to satisfy the requirements related to a credit cooperative society. Minimum of seven board members should be present. The upper limit on the number of members s 21.

Information on the Credit Cooperative Society

A comprehensive document must be provided regarding the credit cooperative society. In this document, information on ‘how the society helps in social and economic development’ must be provided. Along with this the name of the credit cooperative must also be provided. Along with this, information on the registered office of the credit cooperative must also be provided.

Capital requirements

The members also have to provide information that all the requirements related to pre-registration of the society has been met. This would include the information on the initial capital of the company, number of members and other relevant information related to the credit society.

The documents required for registering a Credit Co-operative Society:

Information on the list of members. Such information has to be provided state wise along with information on their date of birth. The registration would only be allowed if there are minimum at least 50 members for each state.

Copies of the PAN Card and Aadhaar Card. Such documents have to be attested by the society’s promoter

Information on the operation of the society in different states. These forms of societies are allowed only to operate in maximum of two states. This would only be for a period of two years.

Resolution for the appointment of the promoter of the society

Certificate from a nationalized bank stating the formation of the society:

Balance present in the account when the application is filed by the society.

Solvency Status of the applicants.

If the member has taken any form of overdraft facilities in the past three financial years.

If overdraft has been excessively used in the past three financial years, then information on when the overdraft facility has crossed the excessive limit.

If there are any violations and penalties related to overdraft, then the reasons for the violations must be provided.

Financial Statements of the Past Three Financial Years. Such statements are not required, if the cooperative society is older than three years.

Information on the society taking steps to take part in democratic decisions.

Bye-Laws of the society as attested and presented by the promoter.

Procedure for Registering a Credit Co-operative Society

The following procedure has to be considered for registering the credit co-operative society:

Go Online

First and foremost, the applicant has to go online to the following website https://mscs.dac.gov.in/Default.aspx . In the website visit the ‘Forms Tab’ where different forms are available. The applicant can go for the process of offline registration or online registration. For the offline process the applicant has to download ‘Form 1’. This form is downloadable in PDF format.
In the next step, the form must be submitted to the ‘The Central Registrar of Cooperative Societies, New Delhi. Along with this, specific documents have to be submitted for forming this type of society.

Online Procedure for registering a Credit Co-operative Society

If the members follow the online procedure for registering a credit co-operative society then the following has to be considered:

Go Online
First and foremost, the applicant has to go online to the following website https://mscs.dac.gov.in/Default.aspx . After this the applicant has to go the tab, ‘MSCS-MIS’. When going here a drop down menu would appear. The applicant has to go and click on ‘New User Registration’.
Provide information
All the forms with relevant information has to be filled by the applicant. Along with this, information on the MD, Chairman, Vice Chairman and other officers has to be filled. Information related to PAN also must be filled by the applicant.
OTP
After this step is complete; the applicant would receive a One Time Password (OTP). An auto generated mail would be sent to the applicant’s email
Login
After receiving this, the applicant would have to login and provide the user name and password for registering the Credit Co-operative Society.

Provide Information

Such societies can be formed under the Multi-State Cooperative Societies Act, 2002. All the information related to the society must be provided by the members. A formal declaration has to be made by the members that a multi state cooperative society has to be formed. Along with this, information on the following must be provided:

Name of the Society
Registered office of the society
Capital of the Society
Number of members of the society
All respective certificates
Registered Office of the Society
Information on the Promoters of the society

Online Procedure for registering a Credit Co-operative Society

If the members follow the online procedure for registering a credit co-operative society then the following has to be considered:

Submit te Form
In the next step, the form must be submitted to the ‘The Central Registrar of Cooperative Societies, New Delhi. Along with this, specific documents have to be submitted for forming this type of society.

Conclusion

The co-operative movement started in order to protect the interests of weaker sections of society. The primary or main objective of this movement is ‘how to protect economically weaker sections of society’ from the middlemen who gain illegally by eating away the major chunk of the profits. In all forms of business structures whether be it is a sole trade, partnership or joint stock company, the primary motive is to increase profits.

The laws governing the societies are “The co-operative societies act, 1912[1]” which is a central Act formed by the Union with the liberty to the concerned states to form their State Act governing the societies to suit their local conditions but the condition being that it should not be in derogation to the central Act. Many states have enacted their own co-operative society Act and rules there under but more or less the requirements to be met by persons who want to form the society remain the same. Promotion of its object, self-help and mutual aid are the fundamental principles of co-operation. The objectives of commercial organization and co-operative organizations are fundamentally different. In a commercial organization, earning and maximizing the profits can be the sole motive but whereas in a co-operative organization profit cannot or should not be the sole motive. It should almost in all circumstances conduct itself in a business like a manner in attaining its objectives efficiently. The Cooperative societies are formed by under the Cooperative Societies Act, 1912 or under any of the relevant laws prevalent their respective State. Min. members required formed should be 10 adult members. The members willing to form society should also have a common bond, i.e. should have trust and faith over each other and should work for not only themselves but also for its members and others. The basic idea behind the formation of such a society should be for achieving a common objective. The Cooperative Societies Act, 1912 expanded the sphere of cooperation between its members and provided for supervision by central organization. A cooperative society, which has its object the promotion of the economic interests of its members in accordance with the co-operative principles, may be registered with limited or unlimited liability by filing application to the registering authority with requisite documents to be submitted by them

A Co-operative Society has to conduct itself as per the following listed below:

Co-operative Societies Act under which the same is registered whether it is under state Act or Central Act.
Co-operative Societies rules made there under whether it be central or state rules
Bye-laws approved by the registrar at the time of registration and amendments made from time to time and approved by the registrar, these bye-laws have to be formed by the concerned members themselves and present it to the registration authority for its approval.
Notification and Orders by the concerned Government.

There are different types of cooperatives, like housing cooperatives, who collect monthly subscription from the members and spends the same to meet the various joint expenses of the society. In this process even if any surplus is generated, it is not chargeable to tax as it is exempt based on the ‘concept of Mutuality’. The cardinal requirement in case of mutual association is that ‘All the contributors to the common fund must be entitled to participate in the surplus & all the participators to the surplus must be contributors to the common trade. Thus in simple words, there should be a complete identity between the contributors and the participators. Thus if the cooperative earns interest from a bank or parking income from non-members or rental income by letting roof for mobile towers, hoardings etc then all these incomes are chargeable.

Different Cooperative has a different functioning system like agricultural cooperative society functions is to serve its members with the raw materials which they need at less and affordable prices, i.e. they grow up in such a way such that none of the members of their society are left. They collect the profit so earned by such formations and then accordingly use them as per the need of the cooperation and also helps from such profit it’s lacking member to come up. Like every other Cooperative society works or functions for the benefit of their members.

Frequently Asked Questions

1. What are the requirements/ documentation’s and procedures for the registration of new Society?
- (a) the viability of a society,
- (b) Its conformity with Delhi Co-operative Societies Act and Rules.
- 1. Model bye-laws (4 copies)
- 2. Enquiry Performa
- 3. List of promoter members.
- 4. Copy of promotional meeting resolution resolving name of the society, value of share money, admission fees, liabilities, total number of members of managing committee, annual submission fees etc.
2. From where can we get the Forms for the registration of new Society?
- You can get the form from our website www.rcs.delhigivt.nic.in (link homepage + registration + minimum requirement), or from the Office of the Delhi State Cooperative Union, 31, Netaji Subhash Marg, Darya Ganj, New Delhi-110002 Tel: 23265863, 232590058.
3.To whom should we contact for the registration of new Society?
- Office of the Registrar Co-operative Societies, Old Court Road, Parliament Street, New Delhi. Tel 23742938, 23742806
4. How do I get the list of managing committee members (President, Secretary, Treasurer etc.) of a Co-operative Society?
- Website Link: Homepae +list of Registered Societies.
5. What are the main conditions of enrolment of a member in a Co-operative Society?
- A resident of Delhi can become member of the society if he or she fulfills the conditions laid down in registered bye-laws of different types of societies. The person can become member on an industrial or transport society if he or she is actually engaged in their respective field and he or she should not be member of other society of similar activities. But in case of housing societies, an applicant for membership should not have any plot/flat in their name or in the name of any dependent member of their family and should also be resident of Delhi for minimum period of 3 years on the date of application.
6. What is the role of the registrar?
- From the registration of a Co-operative Society till the cancellation of its registration, the Registrar acts as a friend, philosopher and guide to the co- operatives Registrar order to ensure that the Co-operative Societies function in accordance with the provisions of Delhi Co-operative Act, Rules, Bye-laws and govt. policies. The main functions of the Registrar are as under:-
7.What kind of societies could be register under Registrar Cooperative Societies?
8. What is the time schedule of Registrar Cooperative Societies to approve the new Cooperative Societies?
9. What are the methods of dealing with the complaints?
- When a complaint is received in the Co-operative Department, it is examined by the section concerned. If need be, the comments of the society concerned official/non official is called for. After examination, if required, inspection u/s 54, enquiry u/s 55 or surcharge proceeding u/s 59 are ordered by the Registrar. If the complaint falls in the purview of section 60/61, the complainant is accordingly advised to file the arbitration case.
10. How do credit co-operative societies operate?
- Credit societies operate based on an association between different individuals that promote specific social and economic interests.

11. What is the difference between the society and a credit cooperative society?
- Societies can be understood as an association of individuals to carry out some objects for some form of common purpose. However, a credit cooperative society is also an association of individuals that promote the interest of the society. This society is form to offer different forms of financial products and less interest rate to its members.
12. Can a society collect deposits?
- Yes, these forms of societies that are credit cooperative societies can collect deposits from its members. There are specific rules which have to be followed by credit cooperative societies.
13.Which law regulates credit cooperative societies?
Such societies are governed by the provisions of the Multi State Cooperative Societies Act, 2002. This act along with different rules helps to promote the betterment of the society.
14. What is the minimum number of members required for a credit cooperative society?
The minimum number of members required for a credit cooperative society is 50. This must be 50 members from each state to form this type of society.
15. Do I have to provide annual financial statements?
Yes audited financial statements have to be provided for registration purposes. However, such statements must be for the preceding three years. A society would not be required to provide these forms of statements if it is more than three years old.
16. Is Cooperative Society Public Authority?
- A body owned, controlled or substantially financed, directly or indirectly by funds provided by the appropriate government,
- Non-governmental organizations substantially financed directly or indirectly by funds provided by the appropriate government.