Certain provisions have specifically been introduced for strengthening the audit process of Multi-State Cooperative Societies: This was stated by the Minister of Cooperation, Amit Shah in the Lok Sabha
FinTech BizNews Service
Mumbai, December 6, 2023: A comprehensive National Cooperative Database is being developed under the Ministry of Cooperation, Government of India, in three phases. Keeping in view the diverse nature and size of cooperative sector, it was decided to create the database by collection of data in a three phased manner.
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i. Phase-I of National Cooperative Database: Under Phase-I, the mapping of about 2.64 lakh primary cooperative societies of three sectors e., Primary Agriculture Credit Societies (PACS), Dairy and Fisheries was completed in February, 2023.
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ii. Phase-II of National Cooperative Database: Under Phase-II, Mapping of National Cooperative Societies/Federations along with their General Body Members was completed. Further, their downward linkages with State Federations, District Unions and Primary Cooperative were also established. The data related to State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), Urban Cooperative Banks (UCBs), State Cooperative Agriculture and Rural Development Banks (SCARDBs), Primary Cooperative Agriculture and Rural Development Banks (PCARDBs), Sugar Cooperative Mills, State Federations, District Unions and MSCS were collected directly from cooperative society or through their National/State Federations.
iii. Phase-III of National Cooperative Database: Under Phase-III, Ministry of Cooperation initiated the process of extending the National Cooperative Database to remaining more than 5 lakh cooperative societies working in all other sectors in May, 2023, through the Office of RCSs of State/UTs. Almost all States/UTs, except Kerala & Manipur, completed (97%) data entries under National Cooperative Database.
As on 24.11.2023, the total number of cooperative societies as mentioned in National Cooperative Database are 7,94,866 with 29,07,60,537 and their members details is placed in Annexure ‘A’. Sector-wise and their members details is placed in Annexure ‘A’.
The government administers multistate cooperative societies through Multistate Cooperative Society Act 2002. Under Section 77, 78, 108, 122, 123 of the Act the Central Registrar of Cooperative Societies monitors functioning of multistate cooperative societies through inspection, inquiry, directions etc. The functioning of State Cooperative Societies is monitored as per the State Cooperative Acts. Further, some of the cooperative societies which are functioning as banks are also regulated and monitored by the Reserve Bank of India.
This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Lok Sabha.
The Multi-State Cooperative Societies (MSCS) (Amendment) Act & Rules, 2023 have been notified on 03.08.2023 and 04.08.2023, respectively to strengthen governance, enhance transparency, increase accountability and reform electoral process, etc. in the Multi State Cooperative Societies by supplementing existing legislation and incorporating the provisions of Ninety-seventh Constitutional Amendment.
The following provisions have specifically been introduced for strengthening the audit process of Multi-State Cooperative Societies:
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i. A provision for Concurrent Audit has been introduced for Multi-State Cooperative Societies with turnover/deposits of more than 500 crore rupees from a panel of auditors approved by Central Registrar. Concurrent audit will ensure early detection of fraud or irregularities, if any, and accordingly prompt course corrections can be made.
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ii. Following two panels of auditors for Multi-State Cooperative Societies have been notified for financial year 2023-24:
1. Panel of auditors for multi-State cooperative societies having an annual turnover/deposit (as the case may be)of up to five hundred crore rupees for carrying out Statutory Audit.
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i.. Panel of auditors for multi-State cooperative societies having an annual turnover/deposit (as the case may be) of more than five hundred crore rupees for carrying out Statutory and Concurrent Audit.
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iii. A provision has also been introduced for determination by Central Government of accounting and auditing standards for multi-State cooperative societies.
This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Lok Sabha.
