Audit Framework and Compliance of Multi-State Cooperative Societies: Government Update
Audit Framework and Compliance of Multi-State Cooperative Societies: Government Update
In a written reply to a question, the Union Minister for Home and Cooperation, Shri Amit Shah, has informed that every multi-state cooperative society must appoint an auditor at its annual general meeting, as required under Section 70 of the Multi-State Cooperative Societies Act, 2002.
The auditor or auditing firm must be chosen from a panel approved by the Central Registrar. Once appointed, the auditor has to complete the audit and submit the report within six months after the end of the financial year.
According to Section 72 of the Act, only a chartered accountant (as defined under the Chartered Accountants Act, 1949) can be appointed as an auditor of such societies. This ensures that audits are carried out by qualified professionals.
He added that, over the past three years, many multi-state cooperative societies have been audited. During these audits, some irregularities and violations of the Act have been found in certain cases. Whenever such issues are detected, appropriate action is taken as per the law.
In more serious cases, where a society is not functioning according to the provisions of the act, the government may start winding-up proceedings under Section 86. In such situations, a liquidator is appointed to manage the closure of the society.
The following is the state-wise number of annual returns filed by MSCSs:
| State | 2022-23 | 2023-24 | 2024-25 | |
| 1 | Andhra Pradesh | 3 | 3 | 5 |
| 2 | Assam | 2 | 1 | 0 |
| 3 | Bihar | 4 | 5 | 8 |
| 4 | Chhattisgarh | 1 | 1 | 0 |
| 5 | Delhi | 58 | 60 | 49 |
| 6 | Gujarat | 20 | 21 | 17 |
| 7 | Haryana | 5 | 7 | 5 |
| 8 | Jharkhand | 2 | 2 | 2 |
| 9 | Karnataka | 18 | 25 | 24 |
| 10 | Kerala | 20 | 37 | 28 |
| 11 | Madhya Pradesh | 6 | 6 | 5 |
| 12 | Maharashtra | 291 | 303 | 275 |
| 13 | Nagaland | 1 | 0 | 0 |
| 14 | Odisha | 1 | 0 | 0 |
| 15 | Puducherry | 4 | 4 | 4 |
| 16 | Punjab | 5 | 6 | 5 |
| 17 | Rajasthan | 18 | 20 | 16 |
| 18 | Sikkim | 1 | 1 | 1 |
| 19 | Tamil Nadu | 75 | 79 | 65 |
| 20 | Telangana | 8 | 11 | 11 |
| 21 | Uttar Pradesh | 37 | 36 | 22 |
| 22 | Uttarakhand | 1 | 1 | 2 |
| 23 | West Bengal | 16 | 16 | 11 |
| Total | 597 | 645 | 555 |
For more information, refer to the official PDF:-