Sections 23-24 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.
Chapter III of the Act deals with federal co-operatives, which are federations whose members are only co-operative societies or multi-State co-operative societies. Section 23 requires them to be registered under the Act, says they act in general meetings through their member co-operatives and applies to them all provisions meant for a multi-State co-operative society. Section 24 lists what a federal co-operative may do for its members, from model bye-laws and training to legal aid and brand promotion.
The sections are read as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023; neither was amended in 2023. If you are forming or running a federation, a legal consultation can check your constitution against the two sections.
A federal co-operative must obtain registration under the Act and is represented in its general meeting by its member co-operatives (s.23(1), (2)). Its classification and other terms are as may be prescribed, and all provisions applicable to a multi-State co-operative society apply to it as far as may be (s.23(3), (4)). Section 24 lets it facilitate voluntary formation and democratic functioning of societies and lists thirteen functions, (a) to (m). Neither section was changed in 2023.
Who is a federal co-operative
Under section 3(k), "federal cooperative" means "a federation of cooperative societies registered under this Act and whose membership is available only to a cooperative society or a multi-state cooperative society". A "member cooperative" under section 3(o) is "a cooperative society or a multi-state cooperative society which is member of a federal cooperative". Section 25(2) adds that no individual is eligible for membership of a national co-operative society or a federal co-operative. The definitions are explained in Section 3, clauses (i) to (p). A federal co-operative is also a multi-State co-operative society, since clause (p) says the expression includes a federal co-operative.
Section 23: registration and status
| Sub-section | What it says |
|---|---|
| (1) | "Every federal cooperative shall obtain registration certification in accordance with the provisions of this Act." |
| (2) | "Every federal cooperative shall in its general meeting be represented by its member cooperative." |
| (3) | "The classification of federal cooperative and other terms and conditions applicable to it shall be such as may be prescribed." |
| (4) | "All provisions of this Act, applicable to a multi-state cooperative society shall, as far as may be, apply to a federal cooperative." |
How these work:
- Registration (1). The wording is "registration certification". The registration route is the one in Chapter II; see sections 5 to 7 for the conditions and the time limit.
- Representation (2). The members of a federal co-operative are societies, so they act through their representatives. The rules on who may represent a society at a meeting are in section 38(3), explained in Section 38.
- Classification and terms (3). The detail is left to rules. The Multi-State Co-operative Societies (Amendment) Rules, 2023 were notified on 4 August 2023 (G.S.R. 591(E)); the consolidated Rules should be checked. This article gives no classification.
- All provisions apply (4). "As far as may be" means the Act's ordinary provisions on bye-laws, meetings, board, audit and returns reach a federal co-operative, adjusted where its nature calls for it.
Section 24: functions
Sub-section (1): the general aim
"Subject to the provisions of this Act and any other law for the time being in force, a federal cooperative may discharge the functions to facilitate the voluntary formation and democratic functioning of cooperative societies as federal cooperative or multi-state cooperatives based on self-help and mutual aid."
Sub-section (2): the list
The printed lead-in reads "Without prejudice to the generality of the provisions contained in sub-section 2 the federal cooperative may-". Printing flag: the cross-reference is to "sub-section 2" within sub-section (2) itself, where sub-section (1) appears to be meant. It is quoted as printed and not reconciled.
A federal co-operative may:
| Clause | Function |
|---|---|
| (a) | ensure compliance of the co-operative principles |
| (b) | make model bye-laws and policies for consideration of its member co-operative |
| (c) | provide specialised training, education and data-base information |
| (d) | undertake research, evaluation and assist in preparation of perspective development plans for its member co-operative |
| (e) | promote harmonious relations amongst member co-operative |
| (f) | help member co-operative to settle disputes among themselves |
| (g) | undertake business services on behalf of its member co-operative, if specifically required by or under the resolution of the general body or the board, or bye-laws of a member of co-operative |
| (h) | provide management development services to a member co-operative |
| (i) | evolve code of conduct for observance by a member co-operative |
| (j) | evolve viability norms for a member co-operative |
| (k) | provide legal aid and advice to a member co-operative |
| (l) | assist member co-operative in organising self-help |
| (m) | develop market information system, logo, brand promotion, quality control and technology upgradation |
The verb throughout is "may", so these are enabling powers, not compulsory duties. The list does not give the federal co-operative any power to bind a member to a code or norm; it says the federation may "evolve" them "for observance". The Act is silent on any consequence for a member that does not follow them.
Practical example
Western Dairy Federation, an invented federal co-operative, has as members seven State dairy societies and one multi-State society. It is registered under the Act. At its general meeting each member is represented by its authorised person (section 23(2)). It issues model bye-laws for its members to consider (clause (b)), runs a training programme for their staff (clause (c)), launches a common brand and quality-control scheme (clause (m)) and, when two member societies fall out over a milk-collection area, helps them settle (clause (f)). If a member wants the federation to buy feed on its behalf, clause (g) allows this only if the member's general body or board resolution, or its bye-laws, specifically require it.
For where federal co-operatives sit among the other kinds of society, read the complete guide to the Act and the comparison with State co-operatives.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 23(1) to (4) | As printed above | No change |
| Section 24(1), (2)(a) to (m) | As printed above | No change |
| Related: s.3(aa), (fa), (ka) | Not in the Act | New definitions; they do not alter these sections |
Need help with a federation?
Setting up the constitution of a federal co-operative, framing model bye-laws for members or planning business services on their behalf calls for careful drafting. Our legal consultation service can review the structure against sections 23 and 24.
Key takeaways
- A federal co-operative must be registered under the Act (s.23(1)).
- Its member co-operatives represent it in its general meeting.
- Classification and other terms are left to rules.
- All provisions applicable to a multi-State co-operative society apply to it as far as may be.
- Section 24 lists thirteen functions; they are enabling ("may"), not compulsory.
- Neither section was amended in 2023.
Read next
- Section 22: conversion of a co-operative society into a multi-State society
- Section 25: persons who may become members
- Section 3, clauses (i) to (p): federal co-operative, financial year, member and society
- MSCS vs State co-operative society: comparison
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.