Financial Irregularities in Cooperative Societies

As per the National Cooperative Database (NCD), out of a total 8.53 lakh Cooperative Societies across the country, 6.63 lakh are functional, 1.41 lakh are non-functional and 49,177 are under liquidation. Among 6.63 lakh functional cooperative societies, 5.95 lakh societies are audited and 0.68 lakh societies are not audited.

Further, Cooperative Societies registered under the provisions of the Multi-State Cooperative Societies (MSCS) Act, 2002 function as autonomous cooperative organisations and accountable to their members. In case of irregularities including financial embezzlement, winding up proceeding u/s 86 of the MSCS Act, 2002 are initiated against such MSCSs and liquidator is appointed under the provisions of Section 89 of MSCS Act, 2002 to liquidate the assets of Society and to ensure payment to investors/members under the provisions of section 90 of the Act. So far, 115 Multi-State Cooperative Societies are put under liquidation.

This information was given by Union Home Minister and Minister of Cooperation, Amit Shah in a written reply in Lok Sabha.(updated on 11th August 2026)