Sections 27-28 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 27 obliges every multi-State co-operative society to organise co-operative education programmes for its members, directors and employees, and lets it provide funds for them. Section 28 says that a member cannot exercise the rights of a member until the required payments have been made or the required use of the society has been shown. The 2023 Amendment Act widened section 28 from payment in respect of membership to "all dues", with an alternative of availing a minimum level of product or services specified in the bye-laws.
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. Section 27 was not amended; section 28 was. A society or member wanting to confirm where the line falls can use a legal consultation.
Every society shall organise co-operative education programmes for its members, directors and employees, and may provide funds for them (s.27). A member cannot exercise the rights of a member unless he has made the payment of all dues to the society, including the payment in respect of membership, or has availed such minimum level of product or services as specified in the bye-laws (s.28 as amended in 2023). The 2023 change added "all dues" and the minimum-use alternative.
Section 27: co-operative education
Sub-section (1). "Every multi-state cooperative society shall organise cooperative education programmes for its members, directors and employees." The word is "shall", so this is a duty. The three groups to be reached are members, directors and employees. The Act does not give a number of programmes, a frequency or a syllabus. The detail of the bye-law on educational and training programmes is a bye-law matter under section 10(2)(zh).
Sub-section (2). "Every multi-state cooperative society may provide funds for such cooperative education programmes." Here the word is "may", so providing funds is optional. Funding of co-operative education from net profits is separately dealt with in section 63, where the 2023 Amendment Act changed the education-fund clause; that is explained in a later article on Section 63.
Section 28: no rights until due payment
The text as amended
The principal copy read: "No member of a multi-state cooperative society shall exercise the rights of a member, unless he has made the payment to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws."
The 2023 Amendment Act (section 10 of that Act) says: "for the words 'to the society in respect of membership,', the words 'of all dues to the multi-State co-operative society including the payment in respect of membership or has availed such minimum level of product or services as specified in the bye-laws,' shall be substituted."
Applying that substitution, the section reads: "No member of a multi-state cooperative society shall exercise the rights of a member, unless he has made the payment of all dues to the multi-State co-operative society including the payment in respect of membership or has availed such minimum level of product or services as specified in the bye-laws, or has acquired such interest in the society, as may be specified in the bye-laws."
Reading flag. The substitution leaves the closing words of the old section ("or has acquired such interest in the society, as may be specified in the bye-laws") in place, so the sentence now carries two bye-law references and two "or" alternatives. The amending clause and the old text can be applied as written; this article quotes the result as printed after substitution and does not rewrite it. The reader should check the official consolidated text.
What it means
| Way to qualify | Source in the text |
|---|---|
| Pay all dues to the society, including the payment in respect of membership | Substituted words (2023) |
| Avail the minimum level of product or services specified in the bye-laws | Substituted words (2023) |
| Acquire such interest in the society as may be specified in the bye-laws | Original words, left in place |
The rights affected are the "rights of a member". The Act does not list them in this section; they include voting and attending meetings under later sections, but section 28 itself does not itemise them. A member who has not met the condition simply cannot exercise those rights until he has.
How section 28 links to the rest
- Minimum use of services. The same idea appears in section 10(2)(zj) ("the minimum level of services, to be used by its members") and in section 29(b) as amended, which makes a failure to use the minimum level for two consecutive years a ground of disqualification; see Section 29.
- Default in payment. Section 29(d) makes default in paying any amount due under the bye-laws a ground of disqualification.
- Active member. The new election provisions use the term "active member" in section 45J; that is a different provision, dealt with in a later article on section 45J.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 27(1), (2) | As printed above | No change |
| Section 28 | "has made the payment to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws" | "has made the payment of all dues to the multi-State co-operative society including the payment in respect of membership or has availed such minimum level of product or services as specified in the bye-laws", with the words "or has acquired such interest in the society, as may be specified in the bye-laws" still following |
A practical example
Cauvery Sugarcane Growers Co-operative, an invented multi-State society, requires in its bye-laws that a member must supply a minimum quantity of cane each season. Kishore has paid his entry share but owes the society for fertiliser advances. Under section 28 as amended, he has not made the payment of all dues, and unless he has availed the minimum level of product or services the bye-laws specify, he cannot exercise a member's rights until he does so. Separately, the society holds a co-operative education day for members, board members and staff, as section 27(1) requires, and may pay for it from its funds under section 27(2).
For the general framework of membership, see Section 25, and for the full Act, the complete guide.
Need help with member rights and dues?
How a society words "minimum level of product or services" in its bye-laws decides who may vote, attend and contest. A legal consultation can help draft the clause and apply it fairly.
Key takeaways
- Every society must organise co-operative education programmes for members, directors and employees (s.27(1)).
- Providing funds for those programmes is optional (s.27(2)).
- A member cannot exercise a member's rights until he has paid all dues, or has availed the minimum level of product or services in the bye-laws, or has acquired such interest as the bye-laws specify (s.28).
- Section 28 was amended in 2023; section 27 was not.
Read next
- Section 26: nominal or associate member and non-voting shares
- Section 29: disqualification for being a member
- Section 30: expulsion of members
- Multi-State Co-operative Societies Act, 2002: complete guide
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.