Section 3 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.
This is the second of three articles on section 3. It covers clauses (i) to (p): the omitted "cooperative year", the Deposit Insurance Corporation, federal co-operative, general body, general meeting, member, member co-operative and multi-State co-operative society, along with the clause (ka) "financial year" which the 2023 Amendment Act inserted.
The law is stated as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023. For help in applying these definitions to a society's constitution, see a legal consultation.
Clause (i) "cooperative year" was omitted in 2023 and clause (ka) "financial year" was inserted with the same words, so the year ends on 31 March unless the Central Registrar sanctions another balancing date. A "member" is a person joining in the application for registration or admitted later under the Act, the rules and the bye-laws. A "multi-State co-operative society" includes a national co-operative society and a federal co-operative. Clause (l) on "general body" is garbled in print and is flagged below.
Clause (i) and the new clause (ka): from "cooperative year" to "financial year"
The principal copy's clause (i) defined "cooperative year" as the year ending on the 31st day of March, or, where the Central Registrar has previously sanctioned balancing the accounts on another day, the year ending on that day. The 2023 Amendment Act omitted clause (i) and inserted clause (ka):
"(ka) 'financial year', in relation to any multi-State co-operative society or class of such societies, means the year ending on the 31st day of March of the year and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day;"
The substance is the same; the label changed. In the principal copy the words "cooperative year" are used again in section 109(a), which the 2023 Amendment Act changed to "financial year". Section 39(1), on the annual general meeting, speaks of "the close of the corresponding year"; the Amendment Act did not touch those words, and this site quotes them as printed.
The other clauses
(j) "Deposit Insurance Corporation" means "the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961)". The Act is quoted as printed; the reader should check the current law for the corresponding provision. The term matters mainly for co-operative banks, in section 20 (see Sections 18 and 20).
(k) "Federal co-operative" 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". No individual can join; see section 25(2). The working rules for these bodies sit in sections 23 and 24, covered in our article on sections 23 and 24 (linked under Read next).
(l) "General body" means all the members of a multi-State co-operative society. For a national co-operative society or a federal co-operative the printed text says it means "all the delegates of member of cooperative societies of delegates of multi-state cooperative societies" and "includes a body constituted under the first proviso to sub-section (1) of section 38". Printing flag: the words after "delegates of" appear garbled in the copy (a "member" is followed by "of cooperative societies of delegates of"), so the reading is uncertain. Do not rely on one reading; check the official gazette text. The first proviso to section 38(1) allows a smaller body of delegates where the bye-laws so provide (see Section 38).
(m) "General meeting" means "a meeting of the general body of a multi-state cooperative societies and includes special general meeting". Printing flag: "a multi-state cooperative societies" appears in the plural in the copy.
(n) "Member" means "a person joining in the application for the registration of a multi-state cooperative society and includes a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws". There are two routes: signing the application (section 6 sets out who must sign) or being admitted afterwards. Who is eligible to be admitted is in section 25.
(o) "Member co-operative" means "a cooperative society or a multi-state cooperative society which is member of a federal cooperative".
(p) "Multi-State co-operative society" means "a society registered or deemed to be registered under this Act and includes a national cooperative society and a Federal cooperative". So the expression is a wide one: every provision that says "multi-State co-operative society" also reaches national co-operative societies (listed in the Second Schedule) and federal co-operatives, unless the context otherwise requires.
What the 2023 Amendment Act changed
| Clause | Before | After the 2023 Amendment Act |
|---|---|---|
| (i) "cooperative year" | Year ending 31 March, or another day with Central Registrar's previous sanction | Omitted |
| (ka) "financial year" | Not in the Act | Inserted, with the same 31 March / sanctioned-day wording |
| (j), (k), (l), (m), (n), (o), (p) | As printed above | No change |
Why the definitions matter
- Counting the year. Annual accounts, the annual general meeting and annual returns are tied to the year. A society that balances its accounts on a day other than 31 March needs the Central Registrar's previous sanction for the definition to follow that day.
- Who votes. The meaning of "general body" decides who sits and votes. For a federal co-operative it is a body of delegates; for an ordinary society it is all members.
- Who is a member. Membership by joining in the application, or by admission, determines who has rights under Chapter IV, from sections 25 onwards (see section 25 on who may be admitted).
A practical example
Himalayan Orchard Federation is an invented federal co-operative whose members are three co-operative societies and one multi-State co-operative society, so no individual is a member. Its general body, for the purposes of clause (l), is made up of the delegates its member co-operatives send, subject to the garbled wording noted above. When the federation wants to draft its annual calendar it must count a year ending 31 March under clause (ka), or a different closing date only if the Central Registrar has previously sanctioned it.
For the broader picture of how these definitions fit together, read the complete guide to the Act.
Need help with membership and meaning of the terms?
Questions such as who counts as a member, or how a federal co-operative should describe its general body, are worth settling before documents are filed. A legal consultation can walk through the definitions against your bye-laws and your members' list.
Key takeaways
- "Cooperative year" (clause (i)) is gone; "financial year" (clause (ka)) took its place in 2023 with the same 31 March rule.
- A federal co-operative has only societies as members (clause (k)).
- "General body" for national and federal societies is defined by delegates; the printed words are garbled and are flagged.
- "Member" covers both signatories of the application and persons admitted later (clause (n)).
- "Multi-State co-operative society" includes national co-operative societies and federal co-operatives (clause (p)).
Read next
- Section 3, clauses (a) to (h): area of operation, board, bye-laws and Central Registrar
- Section 3, clauses (q) to (w): national co-operative society, officer and notification
- Sections 23-24: registration and functions of federal co-operative
- 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.