Context: New building for the office of Central Registrar of Cooperative Societies was inaugurated by Union Home Minister Amit Shah.
About Office of Central Registrar of Co-operative Societies (CRCS)
- The Office of the Central Registrar of Cooperative Societies (CRCS) operates under the jurisdiction of the Ministry of Cooperation, Government of India.
- The Central Registrar appointed under Article 243ZH(f) of the Constitution is the head of the Office of Central Registrar of Cooperative Societies.
- Central Registrar of Cooperative Societies is appointed as per article 243ZH(f) of the Constitution along with the provisions of Multi-State Cooperatives Societies Act, 2002 (MSCS Act, 2002).
- It is the statutory body responsible for registration and other processes of the Multi State Cooperative Societies (MSCS).
Objectives of Central Registrar of Cooperative Societies (CRCS)
- Registration of MSCS
- Amendment to Bye-Laws of MSCS
- Registration of Cooperative Societies as MSCS by conversion
- Dealing with arbitration cases and winding up of cooperative societies
- Formulation of policies regarding management and working of national level cooperative organizations, their implementation and follow-up.
- Examination of proposals regarding Central and State Cooperative legislations.
- Permission for opening of branches of MSCS.
- Dealing with court cases, dispute, appeal cases u/s 99 of the MSCS Act, 2002.
- Conduct of inquiry, inspection u/s 78, 79 and 108
- Liquidation of multi-state cooperative societies
- Issues relate to elections matters, analysis of submitted annual returns & audit reports
- Dealing with work relating to complaints/grievances received from multi-state cooperative societies and from their members.
Features and its role
- Regulatory Oversight: It ensures compliance with the MSCS Act and rules, thus upholding the legal framework governing cooperatives.
- Registration and Regulation: Managing the registration and regulatory oversight of multi-state cooperatives.
- Dispute Resolution: Handling disputes within cooperatives through various judicial processes.
- Policy Implementation: The CRCS is instrumental in implementing policies and schemes related to the cooperative sector.
- Training and Development: Providing training and capacity building for cooperatives.
- Digitalization: The CRCS is moving towards digital solutions to streamline processes, including a digital portal for various services like registration, amendment of bye-laws, and filing of annual returns.
Constitutional Provisions
- Article 19(1)(c): Guarantees the right to form cooperatives.
- Directive Principles of State Policy: Article 43B focuses on promoting cooperatives.
- Part IXB of the Constitution: Dedicated to the cooperative societies, especially focusing on multi-state cooperatives.
Statutory Provisions
- Multi-State Cooperative Societies Act, 2002: The primary legislative framework that governs the operation of multi-state cooperatives.
Key Provisions of the MSCS Act, 2002
- Definition of MSCS: Defined under section 3(p) of the MSCS Act, 2002, a Multi-State Cooperative Society refers to a society registered under this Act, which includes national cooperative societies and federal cooperatives. These societies are designed to serve the interests of members in more than one state.
- Body Corporate Status: Upon registration, an MSCS becomes a body corporate with perpetual succession, a common seal, and the ability to enter contracts, acquire and dispose of properties, sue or be sued, and undertake all activities necessary for achieving its objectives.
- Bye-Laws of MSCS: The bye-laws of an MSCS, as per Section 10 of the Act, cover various aspects including the society's name, address, area of operation, objectives, services for members, membership eligibility, procedures for withdrawal and transfer of membership, rights and duties of members, capital, funding sources, profit allocation, and creation of reserves.
The Multi-State Cooperative Societies (Amendment) Act., 2023
- Establishes the statutory office of Cooperative Election Authority for conducting free and fair elections of Multi-State cooperative societies, supervising the preparation of electoral rolls, enforcing rules of members to elected and returning officers for conducting elections of multi-state cooperative societies.
- Improving democratic character of multi-state cooperatives by mandating that only active members can be elected as the member of the board or office bearer of multi-state cooperative societies.
- Restriction on Redemption of Government Shareholding: The amendment restricts the redemption of shares held by the government in a multi-state cooperative society without prior approval. This includes shares held by central and state governments, the National Co-operative Development Corporation, any government-owned corporation, or any government company.
- Appointment of Co-operative Ombudsman: The amendment introduces the appointment of a Co-operative Ombudsman to inquire into complaints made by members of multi-state cooperative societies. This includes issues related to deposits, equitable benefits, and individual rights of the members.
- Revival of Sick Co-operative Societies: The Act proposes the establishment of a Co-operative Rehabilitation, Reconstruction, and Development Fund for reviving sick multi-state co-operative societies. Profitable societies are expected to contribute to this fund, which may raise concerns about imposing financial burdens on well-functioning cooperatives.
- Cooperative Information Officer in all MSCS for providing information relating to affairs and management of the society to members.
Recent steps to strengthen the cooperative sector
- Establishment of dedicated Union Ministry of Cooperation focusing on empowerment of cooperatives sector.
- Digital Portal for Central Registrar of Cooperative Societies: Introduction of a digital portal to streamline processes like registration and amendment of bye-laws, promoting ease of doing business.
- Establishment of Cooperative Election Authority: This authority ensures fair and transparent elections within Multi-State Cooperative Societies.
- Formation of two panels of auditors for Multi-State Cooperative Societies.
- Template of bye-laws for Multi-State Cooperative Societies.
- Appointment of Cooperative Information Officer in Multi-State Cooperative Societies.
- Creation of CRCS Portal for better collection and utilisation of Cooperative Education Fund.
- Creation of the post of ‘Ombudsman’ for better redressal of complaints..
- Provision of guidance and assistance to encourage the registration of Multi-State Cooperative Societies