Constitution of India: Part IXB
1
[PART IXB
THE CO-OPERATIVE SOCIETIES
243ZH. Definitions.—In this Part, unless the context otherwise
requires,—
(a) “authorised person” means a person referred to as such in article
243ZQ;
(b) “board” means the board of directors or the governing body of a
co-operative society, by whatever name called, to which the direction
and control of the management of the affairs of a society is entrusted to;
(c) “co-operative society” means a society registered or deemed to be
registered under any law relating to co-operative societies for the time
being in force in any State;
(d) “multi-State co-operative society” means a society with objects
not confined to one State and registered or deemed to be registered under
any law for the time being in force relating to such co-operatives;
(e) “office bearer” means a President, Vice-President, Chairperson,
Vice-Chairperson, Secretary or Treasurer, of a co-operative society and
includes any other person to be elected by the board of any co-operative
society;
(f) “Registrar” means the Central Registrar appointed by the Central
Government in relation to the multi-State co-operative societies and the
Registrar for co-operative societies appointed by the State Government
under the law made by the Legislature of a State in relation to
co-operative societies;
(g) “State Act” means any law made by the Legislature of a State;
(h) “State level co-operative society” means a co-operative society
having its area of operation extending to the whole of a State and defined
as such in any law made by the Legislature of a State.
2 4 3 ZI . Incorporation of co-operative societies.—Subject to the
provisions of this Part, the Legislature of a State may, by law, make provisions
with respect to the incorporation, regulation and winding up of co-operative
societies based on the principles of voluntary formation, democratic
member-control, member-economic participation and autonomous functioning.
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1. Part IXB ins. by the Constitution (Ninety-seventh Amendment) Act, 2011, s. 4
(w.e.f. 15-2-2012).
137
243ZJ. Number and term of members of board and its office
bearers.—(1) The board shall consist of such number of directors as may be
provided by the Legislature of a State, by law:
Provided that the maximum number of directors of a co-operative
society shall not exceed twenty-one:
Provided further that the Legislature of a State shall, by law, provide for
the reservation of one seat for the Scheduled Castes or the Scheduled Tribes
and two seats for women on board of every co-operative society consisting of
individuals as members and having members from such class of category of
persons.
(2) The term of office of elected members of the board and its office
bearers shall be five years from the date of election and the term of office
bearers shall be conterminous with the term of the board:
Provided that the board may fill a casual vacancy on the board by
nomination out of the same class of members in respect of which the casual
vacancy has arisen, if the term of office of the board is less than half of its
original term.
(3) The Legislature of a State shall, by law, make provisions for
co-option of persons to be members of the board having experience in the field
of banking, management, finance or specialisation in any other field relating to
the objects and activities undertaken by the co-operative society, as members of
the board of such society:
Provided that the number of such co-opted members shall not exceed
two in addition to twenty-one directors specified in the first proviso to
clause (1):
Provided further that such co-opted members shall not have the right to
vote in any election of the co-operative society in their capacity as such
member or to be eligible to be elected as office bearers of the board:
Provided also that the functional directors of a co-operative society shall
also be the members of the board and such members shall be excluded for the
purpose of counting the total number of directors specified in the first proviso
to clause (1).
243ZK. Election of members of board.—(1) Notwithstanding anything
contained in any law made by the Legislature of a State, the election of a board
shall be conducted before the expiry of the term of the board so as to ensure
that the newly elected members of the board assume office immediately on the
expiry of the office of members of the outgoing board.
(2) The superintendence, direction and control of the preparation of
electoral rolls for, and the conduct of, all elections to a co-operative society
shall vest in such an authority or body, as may be provided by the Legislature
of a State, by law:
Provided that the Legislature of a State may, by law, provide for the
procedure and guidelines for the conduct of such elections.
243ZL. Supersession and suspension of board and interim
management.—(1) Notwithstanding anything contained in any law for the
time being in force, no board shall be superseded or kept under suspension for a
period exceeding six months:
Provided that the board may be superseded or kept under suspension in a
case—
(i) of its persistent default; or
(ii) of negligence in the performance of its duties; or
(iii) the board has committed any act prejudicial to the interests of
the co-operative society or its members; or
(iv) there is stalemate in the constitution or functions of the board;
or
(v) the authority or body as provided by the Legislature of a State,
by law, under clause (2) of article 243ZK, has failed to conduct
elections in accordance with the provisions of the State Act:
Provided further that the board of any such co-operative society shall not
be superseded or kept under suspension where there is no Government
shareholding or loan or financial assistance or any guarantee by the
Government:
Provided also that in case of a co-operative society carrying on the
business of banking, the provisions of the Banking Regulation Act, 1949
(10 of 1949) shall also apply:
Provided also that in case of a co-operative society, other than a
multi-State co-operative society, carrying on the business of banking, the
provisions of this clause shall have the effect as if for the words “six months”,
the words “one year” had been substituted.
(2) In case of supersession of a board, the administrator appointed to
manage the affairs of such co-operative society shall arrange for conduct of
elections within the period specified in clause (1) and handover the
management to the elected board.
(3) The Legislature of a State may, by law, make provisions for the
conditions of service of the administrator.
243ZM. Audit of accounts of co-operative societies.—(1) The
Legislature of a State may, by law, make provisions with respect to the
maintenance of accounts by the co-operative societies and the auditing of such
accounts at least once in each financial year.
(2) The Legislature of a State shall, by law, lay down the minimum
qualifications and experience of auditors and auditing firms that shall be
eligible for auditing accounts of the co-operative societies.
(3) Every co-operative society shall cause to be audited by an auditor or
auditing firms referred to in clause (2) appointed by the general body of the
co-operative society:
Provided that such auditors or auditing firms shall be appointed from a
panel approved by a State Government or an authority authorised by the State
Government in this behalf.
(4) The accounts of every co-operative society shall be audited within
six months of the close of the financial year to which such accounts relate.
(5) The audit report of the accounts of an apex co-operative society, as
may be defined by the State Act, shall be laid before the State Legislature in the
manner, as may be provided by the State Legislature, by law.
243ZN. Convening of general body meetings.—The Legislature of a
State may, by law, make provisions that the annual general body meeting of
every co-operative society shall be convened within a period of six months of
close of the financial year to transact the business as may be provided in such
law.
243ZO. Right of a member to get information.—(1) The Legislature
of a State may, by law, provide for access to every member of a co-operative
society to the books, information and accounts of the co-operative society kept
in regular transaction of its business with such member.
(2) The Legislature of a State may, by law, make provisions to ensure
the participation of members in the management of the co-operative society
providing minimum requirement of attending meetings by the members and
utilising the minimum level of services as may be provided in such law.
(3) The Legislature of a State may, by law, provide for co-operative
education and training for its members.
243ZP. Returns.—Every co-operative society shall file returns, within
six months of the close of every financial year, to the authority designated by
the State Government including the following matters, namely:—
(a) annual report of its activities;
(b) its audited statement of accounts;
(c) plan for surplus disposal as approved by the general body of the
co-operative society;
(d) list of amendments to the bye-laws of the co-operative society, if
any;
(e) declaration regarding date of holding of its general body meeting
and conduct of elections when due; and
(f) any other information required by the Registrar in pursuance of
any of the provisions of the State Act.
243ZQ. Offences and penalties.—(1) The Legislature of a State may,
by law, make provisions for the offences relating to the co-operative societies
and penalties for such offences.
(2) A law made by the Legislature of a State under clause (1) shall
include the commission of the following act or omission as offences, namely:—
(a) a co-operative society or an officer or member thereof wilfully
makes a false return or furnishes false information, or any person
wilfully not furnishes any information required from him by a person
authorised in this behalf under the provisions of the State Act;
(b) any person wilfully or without any reasonable excuse disobeys
any summons, requisition or lawful written order issued under the
provisions of the State Act;
(c) any employer who, without sufficient cause, fails to pay to a
co-operative society amount deducted by him from its employee within a
period of fourteen days from the date on which such deduction is made;
(d) any officer or custodian who wilfully fails to handover custody of
books, accounts, documents, records, cash, security and other property
belonging to a co-operative society of which he is an officer or
custodian, to an authorised person; and
(e) whoever, before, during or after the election of members of the
board or office bearers, adopts any corrupt practice.
243ZR. Application to multi-State co-operative societies.—The
provisions of this Part shall apply to the multi-State co-operative societies
subject to the modification that any reference to “Legislature of a State”, “State
Act” or “State Government” shall be construed as a reference to “Parliament”,
“Central Act” or “the Central Government” respectively.
243ZS. Application to Union territories.—The provisions of this Part
shall apply to the Union territories and shall, in their application to a Union
territory, having no Legislative Assembly as if the references to the Legislature
of a State were a reference to the administrator thereof appointed under
article 239 and, in relation to a Union territory having a Legislative Assembly,
to that Legislative Assembly:
Provided that the President may, by notification in the Official Gazette,
direct that the provisions of this Part shall not apply to any Union territory or
part thereof as he may specify in the notification.
243ZT. Continuance of existing laws.— Notwithstanding anything in
this Part, any provision of any law relating to co-operative societies in force in
a State immediately before the commencement of the Constitution
(Ninety-seventh Amendment) Act, 2011, which is inconsistent with the
provisions of this Part, shall continue to be in force until amended or repealed
by a competent Legislature or other competent authority or until the expiration
of one year from such commencement, whichever is less.]
Reference text of the dated source edition; not a certified official edition or legal advice. Amendment footnotes are retained with their source pages. Check official publications and decisions for current legal effect.
Legislative Department, Government of India · Constitution of India, as on 1 May 2024 (English) · Source checked: 2026-10-02