Section 103 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 103 deals with a co-operative society whose objects were confined to one State, but which becomes a multi-State co-operative society because a reorganisation of States spreads its area over more than one State. It is deemed registered under this Act, may be reconstituted by a scheme, and since 2023 must either divide into State societies within three years or apply for registration.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which added two provisos to s.103(1) by its section 36. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)).
A society that was confined to one State and becomes a multi-State co-operative society by reorganisation is deemed registered under this Act. As amended, if all the successor States take the necessary steps to divide it into State societies within three years, it ceases to be a multi-State society. A deemed society not covered by that rule must apply for registration and obtain a certificate from the Central Registrar. A scheme of reconstitution needs a majority of members present at a general body meeting.
Section 103(1): deemed multi-State co-operative societies
"Where, by virtue of the provisions of Part II of the State Reorganisation Act, 1956 (37 of 1956) or any other enactment relating to reorganisation of states, any cooperative society which immediately before the day on which the reorganisation takes place, had its objects confined to one state becomes, as from that day, a multi-state cooperative society, it shall be deemed to be a multi-state cooperative society registered under the corresponding provisions of this Act and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, continue to be in force until altered or rescinded." Readers should check the current law for the corresponding provision of the State Reorganisation Act, 1956.
Example. The invented Sahyadri District Milk Society had its objects confined to one State. A reorganisation places part of its area in a new State, and, by virtue of the reorganising enactment, the society becomes a multi-State co-operative society from that day. It is deemed registered under the corresponding provisions of this Act, and its bye-laws continue unless inconsistent. If you are in this position and want the next steps explained, you can ask for legal consultation.
The two provisos added in 2023
The 2023 Act added these provisos to sub-section (1):
- "Provided that where all the successor States take necessary steps to divide or reorganise such deemed multi-State co-operative society into State co-operative societies in order to confine their objects, services and the members to respective States within a period of three years, such deemed multi-State co-operative society shall cease to be a multi-State co-operative society".
- "Provided further that the deemed multi-State co-operative society other than those mentioned in the first proviso shall submit an application for registration and obtain the certificate of registration from the Central Registrar."
The text does not say from when the three years run. It also does not say what happens in the period before an application is made, or by when the application must be submitted; no time limit is printed in the second proviso. This article adds none.
| Situation | Result as amended |
|---|---|
| All successor States divide or reorganise the society into State societies within three years | It "shall cease to be a multi-State co-operative society" |
| A deemed society not covered by the first proviso | It "shall submit an application for registration and obtain the certificate of registration from the Central Registrar" |
For registration in general, see our guide to the registration process of a multi-State co-operative society.
Section 103(2): a scheme of reconstitution
If it appears to the Central Registrar, or an officer authorised by the Central Government (the "authorised officer"), "that it is necessary or expedient to reconstitute or reorganise" a society referred to in sub-section (1), he may, "with the previous approval of the Central Government", place before a meeting of its general body, "held in such manner as may be prescribed", a scheme for reconstitution or reorganisation. The scheme may include proposals about:
- (a) forming new multi-State co-operative societies and transferring to them, in whole or in part, the assets and liabilities of that society; or
- (b) transferring, in whole or in part, its assets and liabilities to "any other multi-state cooperative society in existence immediately before the date of that meeting" (the "existing multi-state cooperative society").
The manner of holding the meeting is left to rules. The Rules, 2002 as amended should be checked; this article gives no rule detail.
Section 103(3): sanction and binding effect
"If the scheme is sanctioned by a resolution passed by a majority of the members present at the said meeting, either without modifications or with modifications to which the Central Registrar or the authorised officer agrees, he shall certify the scheme and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any law, regulation or bye-laws for the time being in force, be binding on all the societies affected by the scheme, as well as the shareholders and creditors of all such societies."
Section 103(4): reference to a High Court
If the scheme is not sanctioned under sub-section (3), the Central Registrar or the authorised officer "may refer the scheme to such judge of the appropriate High Court, as may be nominated in this behalf by the Chief Justice thereof, and the decision of that judge in regard to the scheme shall be final and shall be binding on all the societies affected by the scheme as well as the shareholders and creditors of all such societies." The Explanation says "appropriate High Court" means the High Court within whose local limits the principal place of business of the multi-State co-operative society is situated.
Section 103(5): the receiving society must agree
Where a scheme includes a proposal to transfer assets and liabilities to an existing society under clause (b) of sub-section (2), the scheme "shall not be binding on such multi-state cooperative society or the shareholders and creditors thereof, unless the proposal regarding such transfer is accepted by that multi-state cooperative society by a resolution passed by a majority of the members present at a meeting of its general body."
Reading the 2023 provisos with sub-sections (2) to (5)
The amended sub-section (1) and the scheme in sub-sections (2) to (5) are separate routes in the text. The first proviso depends on all successor States acting; the scheme depends on the Central Registrar or the authorised officer and the previous approval of the Central Government. The sources do not say how the two routes relate when both apply, and this article does not decide that. A related point is that merger into an existing society is provided for in the new s.17(10), which is outside this article.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.103(1) | Deemed registration; bye-laws continue | Two provisos added: three years for successor States to divide, otherwise apply for registration |
| s.103(2) to (5) | As printed above | Not amended |
Need help with a reorganisation or registration question?
Societies affected by a reorganisation of States have to decide early whether to divide, apply for registration or take a scheme to the general body. We can help you read the position against your bye-laws and area of operation through legal consultation.
Key takeaways
- A single-State society that becomes multi-State on reorganisation is deemed registered under this Act.
- As amended, it ceases to be multi-State if all successor States divide or reorganise it into State societies within three years.
- Otherwise it must apply for registration and obtain a certificate from the Central Registrar.
- A reconstitution scheme needs a majority of members present, certification, and, if refused, may go to a High Court judge.
- A transfer to an existing society needs that society's own general body resolution.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Multi-State Co-operative Society registration: step-by-step process
- Sections 99 and 100: appeals and orders not open to appeal
- Section 104: offences and penalties
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.