One of the most significant changes under the amended law is the establishment of a Cooperative Election Authority to ensure timely, free and transparent elections in multi-state cooperative societies. The move seeks to end prolonged delays and disputes that have weakened democratic functioning within cooperatives.
The Act also provides for the appointment of a Cooperative Ombudsman by the Central Government to address grievances of members, offering a structured redressal mechanism. To further enhance transparency, societies are now required to appoint Information Officers to provide timely access to information for members.
In a major accountability measure, audit reports of apex multi-state cooperative societies will be laid before Parliament. Annual reports must now disclose board decisions that were not unanimous, strengthening internal accountability.
Stronger Audits and Financial Discipline
The amended law significantly strengthens the audit framework for cooperatives. Multi-state cooperative societies with a turnover or deposits exceeding ₹500 crore will now be subject to concurrent audits, enabling early detection of fraud or financial mismanagement.
Two separate panels of auditors have been notified one for societies with turnover up to ₹500 crore and another for larger entities requiring both statutory and concurrent audits. Accounting and auditing standards will now be prescribed by the Central Government to ensure uniformity and credibility.
Societies are also mandated to file annual returns online through the Central Registrar of Cooperative Societies (CRCS) portal within six months of the close of the financial year. Failure to comply may result in disqualification of directors.
Checks on Nepotism and Conflict of Interest
To curb nepotism and misuse of authority, directors are barred from participating in discussions or voting on matters where they or their relatives have a vested interest. Additional disqualification grounds for directors have been introduced to improve ethical governance.
Investment norms have been redefined to ensure safer deployment of cooperative funds, removing outdated references to colonial-era securities. Boards are now required to constitute Audit and Ethics Committees to strengthen oversight.
National Cooperative Database and Revival Measures
The Ministry of Cooperation has also developed a comprehensive National Cooperative Database (NCD), launched in March 2024. The portal provides a single-point access to data on over 8.4 lakh cooperative societies across India.
As of January 2026, over 6.57 lakh societies are functional, while around 1.41 lakh are non-functional and more than 49,000 are under liquidation. The database is being used to identify gaps and support the formation of two lakh new multipurpose cooperatives.
Additionally, a Cooperative Rehabilitation, Reconstruction and Development Fund has been created to revive sick multi-state cooperatives and support infrastructure needs, reinforcing the Centre’s commitment to cooperative sustainability.