Multi-State Cooperative Societies (MSCS) Amendment Bill, 2022
MSCS Act, 2002:
- The Act was passed to govern Multi State Cooperative Societies.
- Administrative and financial control of these societies is with the central registrar.
- No state government official can wield any control on them.
- So far 1,479 such societies have been registered.
- Maharashtra has the highest number (567) followed by Uttar Pradesh (147) and New Delhi (133).
- Credit societies constitute the bulk of registered societies followed by agro-based (96 multistate cooperative dairies and 66 multistate cooperative banks),
Multi State Cooperative Societies:
- Although Cooperatives is a state subject, there are many societies such as those for sugar and milk, banks, milk unions etc whose members and areas of operation are spread across more than one state.
- For example, sugar mills along the districts on the Karnataka–Maharashtra
- They are thus registered under the MSCS Act.
- Their board of directors has representation from all states they operate
Area of Operation:
- Area of Operation means the area from which the persons are admitted as members.
MSCS Amendment Bill, 2022:
- The Bill to amend the Multi-State Cooperative Societies (MSCS) Act, 2002, was introduced in the Lok Sabha on December 7.
- The amendments have been introduced to improve governance, reform the electoral process, strengthen monitoring mechanisms and enhance transparency and accountability.
- The Bill also seeks to improve the composition of the board and ensure financial discipline, besides enabling the raising of funds in multi-State cooperative societies.
- It has included provisions relating to representation of women and Scheduled Caste/Scheduled Tribe members on the board of multi-state cooperative societies.
- The amendments have been brought to reform the electoral process, strengthen monitoring mechanisms and enhance accountability.
- To improve the governance of multi-state cooperative societies, the Bill has specific provisions for setting up of Cooperative Election Authority, Cooperative Information Officer and Cooperative Ombudsman.
- There will also be a provision for issuing non-voting shares in multi-state co-operative societies to help them raise funds.
- Further, the newly proposed Rehabilitation, Reconstruction & Development Fund will help in revitalising sick co-operative societies.