Section 124 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 124 gives the Central Government power to make rules to carry out the Act, lists the matters rules may provide for, and requires every rule, and every notification under s.116, to be laid before Parliament. The 2023 Amendment Act inserted many new rule-making matters, omitted clause (o) and substituted sub-section (3).
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.124 by its section 47. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)).
The Central Government "may, by notification, make rules to carry out the provisions of this Act". Sub-section (2) lists matters "without prejudice to the generality" of that power. The 2023 Act added matters on the guidelines under s.7(2), the Co-operative Election Authority, the Ombudsman, unlawful gains under s.104(6), information applications under s.106(2) and electronic functions under s.120A, and omitted clause (o). Rules and s.116 notifications must be laid before Parliament for thirty days. The rules themselves are not in the sources used here.
Section 124(1): the general power
"The Central Government may, by notification, make rules to carry out the provisions of this Act." This is unchanged. The rules made under it, the Multi-State Co-operative Societies Rules, 2002, are not in the sources. Amending rules were notified on 4 August 2023 (G.S.R. 591(E)), and the consolidated Rules as amended should be checked; this article gives no rule number, form, fee, time limit or procedure. Anyone who needs to know which rule governs a particular step can start with a legal consultation.
Section 124(2): the list of matters
The sub-section says "In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters". The principal list ran from clause (a) to clause (y), the last being "any other matter which is to be or may be prescribed". The 2023 Act changed it as follows.
| Change | Clause as amended |
|---|---|
| Inserted | (aa) "the guidelines under sub-section (2) of section 7" |
| Inserted | (ja) the manner in which the board shall provide information, documents, personnel, funds or expenses or other assistance sought by the Co-operative Election Authority under s.43(2)(a) |
| Substituted for (k) | (k) the composition of the Selection Committee for appointment of the Chairperson, Vice-Chairperson and Members of the Authority under s.45(1); (ka) qualification and experience of a Member of the Authority under s.45(3)(iii); (kb) salaries, allowances and terms of service under s.45(5); (kc) other powers and functions of the Chairperson under s.45A; (kd) procedure of inquiry under s.45B(2); (ke) time, places and procedure at the Authority's meetings under s.45H(1); (kf) other functions of the Authority under s.45-I(iii); (kg) the manner of election of board members by secret ballot under s.45J(3); (kh) the manner of bearing election expenses under s.45J(6); (ki) the manner of discharge of functions by Returning Officers and observers under s.45K; (kj) other functions of observers under s.45K(3)(a) |
| Inserted | (ma) the procedure for recruitment of employees under the proviso to clause (e) of s.49(2) |
| Omitted | (o) |
| Inserted | (qa) the manner of maintenance of fund under clause (b) of s.63(1) |
| Inserted | (sa) the manner of appointment of the Co-operative Ombudsman and submission of complaints under s.85A(1); (sb) the manner of filing an appeal by a society against the Ombudsman's directions under s.85A(3); (sc) other matters under s.85A(5)(d) |
| Inserted | (wa) the manner of recovery and deposit of proceeds of unlawful gains under s.104(6); (wb) the manner to make an application with such fee for getting information under s.106(2) |
| Inserted | (xa) the manner of powers being exercised by the Central Government for filing, inspections and the like in electronic form under s.120A(1); (xb) the manner of discharging functions by the Central Registrar in electronic form under s.120A(2) |
Clause (o) of the principal list, now omitted, was "the conditions subject to which the board may constitute an Executive Committee and other committees or sub-section (1) of section 53" (printed so, with "or" for "of"). The 2023 Act also amended s.53. The text does not say what replaces clause (o) as a rule-making matter, and this article does not say.
Many of the other clauses are the places where the Act says "as may be prescribed". For example, the list includes the appellate authority under s.99(2) (clause (v)), the procedure for reconstitution under s.103 (clause (w)), the manner of disposing of the surplus under s.90(2)(k) (clause (t)) and the division of surplus assets under s.91(b) (clause (u)). Our articles on appeals and surplus assets explain how those clauses connect.
Example. The invented Penna Multi-State Credit Society wants to know the fee to apply for information under s.106(2). The Act does not give it: clause (wb) lets the rules provide "the manner to make an application with such fee". The fee is in the rules, which are not in the sources used for this article. A society or member unsure of the current rule position should check the Rules as amended.
Section 124(3): laying before Parliament, as substituted
"Every rule made under this section and any notification issued under section 116 shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the rules and any notification issued under section 116 should not be made, the rule and any notification issued under section 116 shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule and any notification issued under section 116."
Two points. The substituted sub-section extends the laying requirement to "any notification issued under section 116" (the power to amend the Schedules). And s.116(2), as amended, separately says a copy of every notification under s.116(1) and (1A) "shall be laid before each House of Parliament as soon as may be after it is made". Both are printed; the sources do not reconcile them. See our article on sections 114 to 116.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.124(2) list | Clauses (a) to (y) | New clauses (aa), (ja), (ka) to (kj), (ma), (qa), (sa) to (sc), (wa), (wb), (xa), (xb); (k) substituted; (o) omitted |
| s.124(3) | Every rule laid before Parliament for thirty days | Same, and also any notification under s.116 |
Need help reading the rules with the Act?
Much of the detail of the Act sits in rules: forms, fees, procedures and norms. Because the consolidated Rules are not in the sources used for this article, any step that depends on them should be checked against the current text. Our team can walk you through how the Act and the rules fit together in a legal consultation.
Key takeaways
- Section 124(1) lets the Central Government make rules by notification to carry out the Act.
- Section 124(2) lists matters; the 2023 Act added clauses on the Authority, the Ombudsman, unlawful gains, information applications and electronic functions, and omitted clause (o).
- Section 124(3) as substituted requires rules and s.116 notifications to be laid before Parliament for thirty days.
- The rules are not in the sources used here; amending rules were notified on 4 August 2023 (G.S.R. 591(E)).
- Check the current Rules for forms, fees and procedures.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Sections 114 to 116: liquidator as public servant, notice in suits and Schedules
- Sections 125 and 126: removal of difficulties, repeal and saving
- Sections 120A and 120B: electronic filing and the Banking Regulation Act
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.