Sections 60 and 61 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 60 lets a member agree that his employer will deduct a monthly sum from his salary or wages and pay it to the society, and it gives the society a way to recover from an employer who defaults. Section 61 lists the ways the Central Government or a State Government may support a multi-State co-operative society. Neither was amended in 2023. They are stated as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
A member may sign an agreement that his employer will deduct a monthly amount from his salary or wages and pay it to the society. On a written requisition the employer must deduct and pay it over within fourteen days of the deduction, and that payment discharges the employer. If the employer fails to deduct or to remit, the society may recover the amount from the employer as arrears of land revenue. Section 61 lets the Central Government or a State Government, on a request from the society, subscribe to share capital, give loans, give guarantees for repayment, give financial assistance, and provide aid on prescribed terms.
Section 60: deduction from salary
Sub-section (1): the agreement
"Notwithstanding anything contained in any law for the time being in force, a member of a multi-state cooperative society may execute an agreement in favour of that society providing that his employer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand the member owes to the society."
Points to note:
- the member signs; the employer is not a party but is made "competent" to deduct;
- the amount is whatever "may be specified in the agreement", so the Act sets no cap in this section;
- the purpose is "any debt or other demand the member owes to the society";
- the opening words, "Notwithstanding anything contained in any law for the time being in force", make the agreement operate over other laws; the section does not name them.
Sub-section (2): requisition and remittance
"On the execution of such agreement, the employer disbursing the salary or wages of the members shall, if so required by the multi-state cooperative society, by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a period of fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936 (4 of 1936), and such payment shall be valid discharge of the employer for his liability to pay the amount deducted."
The sequence is: agreement, then a written requisition by the society, then deduction "in accordance with the agreement" for as long as the society does not say the debt is cleared, then payment to the society within fourteen days of the deduction. Payment is a "valid discharge" of the employer for the amount deducted. Check the current law for the corresponding provision of the Payment of Wages Act, 1936; the Act names no other law here. A society that wants to put its salary-deduction forms and requisition letters in order can ask our legal consultation team to review them.
Sub-section (3): the employer who does not comply
"If after the receipt of a requisition made under sub-section (2), the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-state cooperative society, the society shall be entitled to recover any such amount from such employer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears."
Two defaults are covered: failing to deduct after the requisition, and failing to remit what was deducted. In both the society "shall be entitled to recover" from the employer "as arrears of land revenue", and the sum ranks in priority "equal to that of the salary or wages in arrears". The section does not describe the land revenue machinery.
Section 61: Government aid
Section 61 opens: "Notwithstanding anything contained in any law for the time being in force, the Central Government or a State Government, on receipt of request from a multi-state cooperative society and with a view to promoting cooperative movement, may,—". Two conditions are built in: a request from the society, and the purpose of promoting the co-operative movement. The Governments "may"; the section is an enabling power and gives the society no right to aid.
| Clause | Form of aid |
|---|---|
| (a) | subscribe to the share capital of the society |
| (b) | give loans or make advances to the society |
| (c) | give a guarantee for repayment of principal and payment of interest on debentures issued by the society |
| (d) | give a guarantee for repayment of share capital of the society and dividends thereon at such rates as may be specified by the Central Government or the State Government |
| (e) | give a guarantee for repayment of principal and payment of interest on loans and advances to the society |
| (f) | give financial assistance in any other form, including subsidies |
| (g) | provide aid to any other multi-State co-operative society on such terms and conditions as may be prescribed |
Clause (g) is printed "to any other multi-state cooperative society" with no earlier society to which "other" refers, since the opening already speaks of the requesting society. We flag the wording and read it as printed. Terms for clause (g) are left to rules; none is given here. Amendment rules were notified on 4 August 2023 (G.S.R. 591(E)); the consolidated Rules should be checked.
Government aid links directly to board representation: where a Government has subscribed to share capital, or has given a guarantee or assistance, section 48 gives it a right to nominate persons on the board. See our note on Government nominees on the board.
A practical example
Mr. Singh is a salaried employee and a member of Tarang Multi-State Co-operative Society, with a loan outstanding. He signs an agreement that his employer will deduct a fixed amount each month. The society sends a written requisition. The employer deducts from the March salary but pays the society only after twenty days, and in April does not deduct at all. Under section 60(2) the remittance was due within fourteen days of the deduction, and under section 60(3) the society may recover both the late remittance and the amount not deducted from the employer as arrears of land revenue.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| ss.60, 61 | As printed above | Unchanged |
The 2023 Amendment Act is Act 11 of 2023 and came into force on 3 August 2023 by notification S.O. 3493(E). The principal Act came into force by notification, date not in the source.
Need help recovering dues?
A society with unpaid member dues, or an employer unsure of its position after a requisition, can check the facts against sections 60 and 61 before a dispute starts. Contact our legal consultation team to review the agreement, the requisition and the remittance record.
Key takeaways
- A member may agree in writing that his employer will deduct a monthly sum and pay it to the society.
- The employer must deduct and remit within fourteen days of the deduction once the society makes a written requisition.
- Payment is a valid discharge of the employer for the amount deducted.
- A defaulting employer is liable to recovery as arrears of land revenue, with priority equal to salary or wages in arrears.
- Section 61 allows Governments to subscribe to share capital, give loans, give guarantees for repayment and provide other aid, on the society's request.
Read next
- Register of members, evidence and exemption from registration (sections 57 to 59)
- Funds not to be divided by way of profit (section 62)
- Employees in management and Government nominees on the board (sections 42 and 48)
- 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.