Section 108 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 108 opens the books of account and other books and papers of every multi-State co-operative society to inspection, by the Central Registrar or a person he authorises, by an officer of the Government authorised by the Central Government, and by members. It lays duties on directors and officers to produce books and assist, and gives the inspector the powers of a civil court.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which amended s.108(1)(i) by its section 40. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)).
The books are open to inspection during business hours by the Central Registrar or a person authorised by him, "not below the rank of Assistant Commissioner or equivalent", by a Government officer authorised by the Central Government, and by members. Inspection by the first two may be made without previous notice. Directors, officers and employees must produce books and give assistance, and the inspector has a civil court's powers to require documents, summon and examine on oath, and inspect at any place. A report goes to the Central Government.
Section 108(1): who may inspect
As amended, the sub-section reads: "The books of account and other books and papers of every multi-state cooperative society shall be open to inspection during business hours- (i) by the Central Registrar or any person authorised by him in this behalf, not below the rank of Assistant Commissioner or equivalent, or (ii) by such officer of the Government as may be authorised by the Central Government in this behalf: Provided that such inspection may be made without giving any previous notice to that society or any officer thereof; (iii) by the members of the multi-state cooperative society."
| Who | As printed |
|---|---|
| Clause (i) | The Central Registrar, or (since 2023) "any person authorised by him in this behalf, not below the rank of Assistant Commissioner or equivalent" |
| Clause (ii) | "such officer of the Government as may be authorised by the Central Government in this behalf" |
| Clause (iii) | "the members of the multi-state cooperative society" |
The proviso is printed after clause (ii) and before clause (iii), and says inspection "may be made without giving any previous notice". Read with the layout, it follows clause (ii); whether it also reaches clause (i) or clause (iii) is not stated, and this article does not decide that. The rank "Assistant Commissioner or equivalent" is the Act's own wording: the Act does not name the service or define "equivalent". For a society that is being inspected, legal due diligence support can help to organise the records beforehand.
Example. The Central Registrar authorises an officer of the rank of Assistant Commissioner to inspect the books of the invented Rihand Multi-State Credit Society. Under clause (i) as amended he may do so; an officer below that rank cannot be authorised under that clause. The society's directors must produce the books on his request.
Section 108(2) and (3): duties of directors, officers and employees
Every director, other officer or employee must "produce to the person making inspection under sub-section (1), all such books of account and other books and papers of the multi-state cooperative society in his custody or control" and "furnish him with any statement, information or explanation relating to the affairs of such society as the said person may require of him within such time and at such place as he may specify". It is also their duty "to give to the person making inspection under this section all assistance in connection with the inspection which the multi-state cooperative society may be reasonably expected to give."
Refusal to cooperate can have consequences elsewhere: s.104(1) punishes wilful disobedience of a summons, requisition or lawful written order, and new s.104(5) covers destruction or falsification of documents during an inspection. See our article on offences and penalties.
Section 108(4): copies and marks
The inspector may, during the inspection, "make or cause to be made copies of books of account and other books and papers" and "place or cause to be placed any marks or identification thereon in token of the inspection having been made." The sub-clauses are printed as (j) and (ii); the first is a printing slip for (i), and the text is quoted as printed.
Section 108(5): powers of a civil court
"Notwithstanding anything contained in any other law for the time being in force or any contract to the contrary, the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making an inspection under this section shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, in respect of the following matters":
- the discovery and production of books of account and other documents, at such place and time as the inspector specifies;
- summoning and enforcing the attendance of persons and examining them on oath; and
- inspection of any books, register and other documents of the society at any place.
Readers should check the current law for the corresponding provision of the Code of Civil Procedure, 1908. The sub-section names the Central Registrar and an officer authorised "under clause (ii)"; it does not mention a person authorised under clause (i), which the 2023 Act added. The amending clause changed only clause (i); sub-section (5) was left as printed. The two texts do not state whether the civil-court powers reach a person authorised by the Central Registrar, and this article does not guess.
Section 108(6): report
Where an inspection has been made, "the Central Registrar or an officer authorised under clause (ii) of sub-section (1), making the inspection shall make a report to the Central Government". The print of the sub-section ends there, without a full stop. The same remark about a person authorised under clause (i) applies.
How s.108 connects to winding up
Section 86(1), as amended in 2023, lets the Central Registrar direct winding up after "an inspection has been made under section 79 or section 108". See our article on winding up of multi-State co-operative societies. That gives s.108 inspections a consequence beyond the report.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.108(1)(i) | "by the Central Registrar" | "by the Central Registrar or any person authorised by him in this behalf, not below the rank of Assistant Commissioner or equivalent" |
| s.108(2) to (6) | As printed above | Not amended |
| s.86(1) | Named audit, inquiry and inspection under ss.70, 77, 78 and 79 | Now also names "section 108" |
Need help preparing for or responding to an inspection?
Inspection can run without previous notice, and directors and officers have personal duties to produce records and answer. Our team can help you check records and responses, and our legal due diligence work can review the books before an inspector asks for them.
Key takeaways
- The Central Registrar, a person he authorises (Assistant Commissioner rank or equivalent, or above), an authorised Government officer and members may inspect the books.
- Inspection by the officers may be made without previous notice, as the proviso is printed.
- Directors, officers and employees must produce books, give explanations and assist.
- Sub-section (5) gives civil court powers to the Central Registrar and an officer authorised under clause (ii).
- Section 86(1) now links winding up to inspections under s.108.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 86: winding up of multi-State co-operative societies
- Section 104: offences and penalties
- Section 120: filing of annual returns
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.