Sections 79 and 80 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 79 lets the Central Registrar inspect a multi-State co-operative society on the request of specified persons, with access to its books and property and, in serious cases, the power to take them into custody. Section 80 gives a creditor a route to have the society's books inspected, but only if the debt is due, payment has been demanded and costs are secured. Neither section was amended in 2023. They are stated here as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
Section 79: on a request from a federal co-operative to which the society is affiliated, a creditor, not less than one-third of the board or not less than one-fifth of the members, the Central Registrar may inspect, after a notice of not less than fifteen days. He has access to books and property at all times, may take records into custody in the event of serious irregularities, and a copy of the report goes to the society within three months of completion. Section 80: on a creditor's application, the Central Registrar shall inspect the books, but only if the debt is due and demanded and the creditor deposits security for costs.
Section 79(1): who may ask, and the notice
"The Central Registrar may, on a request from a federal cooperative to which a multi-state cooperative society is affiliated or a creditor or not less than one-third of the members of the board or not less than one-fifth of the total number of members of a multi-state cooperative society by general or special order in writing in this behalf, inspect or direct any person authorised by him by order in writing in this behalf to make an inspection into the constitution, working and financial condition of a multi-state cooperative society".
The proviso: "no inspection under this sub-section shall be made unless a notice of not less than fifteen days has been given to the multi-state cooperative society."
The requesters and the notice period are the same as for an inquiry under section 78(1); see our note on inquiry by the Central Registrar. The difference is in the powers and the report. The section speaks of "general or special order in writing", so the inspection is ordered in writing, either by a general order or by a special order. If you are preparing a society for an inspection, our legal due diligence team can help organise the records and the response.
Section 79(2): access, custody and information
Clause (a): access and custody
"For the purpose of inspection under sub-section (1), the Central Registrar or the person authorised by him under that sub-section shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the event of serious irregularities discovered during inspection, take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the Central Registrar to call a meeting of the board and also a general meeting of the society where such general meeting is, in his opinion, necessary."
Four powers appear in one sentence:
| Power | Condition |
|---|---|
| Access to books, accounts, papers, vouchers, securities, stock and other property | "at all times" |
| Take them into custody | "in the event of serious irregularities discovered during inspection" |
| Verify the cash balance | No condition stated |
| Call a meeting of the board, and a general meeting | Subject to the general or special order of the Central Registrar; the general meeting only "where such general meeting is, in his opinion, necessary" |
The Act does not say how long custody may last or how records are returned, and does not define "serious irregularities".
Clause (b): duty to furnish information
"Every officer or member of a multi-state cooperative society shall furnish such information with regard to the working of the society as the Central Registrar or the person making such inspection may require." The duty falls on every officer and every member, not only officers.
Section 79(3): the report
"A copy of the report of inspection under this section shall be communicated to the multi-state cooperative society within a period of three months from the date of completion of such inspection." The three months run from completion of the inspection; under section 78(4) the inquiry period runs from receipt of the report. The two sections count the period differently, and the text does not say why. We state both as printed.
Section 80: inspection of books of indebted societies
Sub-section (1): the creditor's route
"The Central Registrar shall, on the application of a creditor of a multi-state cooperative society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the books of the society".
The word "shall" means the Central Registrar must act on a creditor's application, unless the proviso is not met. The proviso says that no such inspection shall be made unless the applicant:
- (a) "satisfies the Central Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time"; and
- (b) "deposits with the Central Registrar such sum as security for the costs of the proposed inspection as the Central Registrar may require".
The two clauses are printed one after the other with no "or", so they read as cumulative conditions. The amount of the deposit is whatever the Central Registrar requires; the Act gives no figure.
Sub-section (2): the result
"The Central Registrar shall communicate the result of any such inspection to the creditor." The section does not say whether the society also receives it.
Section 79 and section 80 compared
| Point | Section 79 | Section 80 |
|---|---|---|
| Who asks | Federal co-operative, creditor, one-third of the board, one-fifth of the members | A creditor |
| Central Registrar's duty | "may" | "shall", subject to the proviso |
| Notice to society | Not less than fifteen days | Not stated |
| Security for costs | Not mentioned | Required of the applicant |
| Scope | Constitution, working and financial condition | The books of the society |
| Report goes to | The society, within three months of completion | The creditor |
Costs of an inspection under section 79 can be apportioned under section 81; see our note on costs of inquiry, recovery and repayment order.
A practical example
Vasant Multi-State Co-operative Society owes a supplier a sum that fell due six months ago, and the supplier has demanded payment twice without result. Under section 80 the supplier applies to the Central Registrar, satisfies him that the sum is due and demanded, and deposits the sum he requires as security for the costs. The Central Registrar must inspect the books and communicate the result to the supplier. In a separate matter, one-fifth of the members request an inspection under section 79. The Central Registrar gives fifteen days' notice, his officer finds serious irregularities in the cash book and takes it into custody, and a copy of the report goes to the society within three months of completion.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| ss.79, 80 | 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. Section 78, on inquiry, was amended in 2023; sections 79 and 80 were not.
Need help with an inspection?
A society should keep its books, vouchers, securities and cash records ready for inspection at any time, and a creditor should keep proof of the due debt and the demand. Our legal due diligence team can help you check the position under sections 79 and 80.
Key takeaways
- The Central Registrar may inspect on a request from a federal co-operative, a creditor, one-third of the board or one-fifth of the members, after fifteen days' notice.
- During an inspection he has access at all times, may take records into custody in the event of serious irregularities and may verify the cash balance.
- Every officer or member must furnish information he requires.
- A copy of the report goes to the society within three months of completion of the inspection.
- On a creditor's application the Central Registrar shall inspect the books if the debt is due and demanded and the creditor deposits security for costs.
Read next
- Inquiry by the Central Registrar (section 78)
- Costs of inquiry, recovery and repayment order (sections 81 to 83)
- Special audit directed by the Central Government (section 77)
- 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.