Section 85A 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 85A is a new provision. It lets a member of a multi-State co-operative society bring a complaint about deposits, equitable benefits or individual rights to a Co-operative Ombudsman appointed by the Central Government, who must decide within three months. A society that is aggrieved by the Ombudsman's directions may appeal to the Central Registrar.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023. Section 31 of the 2023 Act inserted Chapter IXA, headed "Redressal of Complaints", after Chapter IX; the 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)).
The Central Government shall appoint one or more Co-operative Ombudsman, each with territorial jurisdiction. A member can complain about "deposits, equitable benefits of society's functioning or any other issue affecting the individual rights" of that member. The Ombudsman must complete the inquiry and adjudicate within three months. The society must comply with directions within one month, or appeal to the Central Registrar within one month; the Central Registrar decides within forty-five days, and that decision is final and binding.
Section 85A(1): who is appointed and who can complain
"The Central Government shall appoint, one or more Co-operative Ombudsman with territorial jurisdiction for inquiring into the complaints made by any member of the multi-State co-operative societies regarding their deposits, equitable benefits of society's functioning or any other issue affecting the individual rights of the concerned member, in such manner, as may be prescribed."
Three points follow. First, the complainant is a member, not a depositor who is not a member; the text speaks only of "any member". Second, the subject matter is deposits, equitable benefits of the society's functioning, or any other issue affecting that member's individual rights. Third, the manner is left to rules. The amending rules notified on 4 August 2023 (G.S.R. 591(E)) and the consolidated Rules should be checked; this article gives no rule detail.
The sources do not say whether, or when, any Ombudsman has been appointed, and this article asserts nothing on that. Nor do they say how a complaint under s.85A relates to a dispute under s.84; see our article on reference of disputes to arbitration for that separate route.
Example. Imran holds a term deposit with the invented Sahyadri Multi-State Thrift Society. The society has not paid it on maturity and has not told him why. As a member, his complaint about his deposit is within s.85A(1). A member in his position may want legal dispute resolution support in framing the complaint.
Section 85A(2): three months to decide, one month to comply
"The Co-operative Ombudsman shall, on receipt of a complaint, complete the process of inquiry and adjudicate within a period of three months from the date of receipt of the complaint and may issue necessary directions to the society during the course of inquiry and the society shall be bound to comply with the same within a period of one month from the date of issuance of such directions."
| Step | Period |
|---|---|
| Inquiry and adjudication | Three months from receipt of the complaint |
| Directions during inquiry | Society bound to comply within one month of issue |
Section 85A(3): appeal to the Central Registrar
"The multi-State co-operative society aggrieved by any directions of the Ombudsman may file an appeal in such manner as may be prescribed, within a period of one month before the Central Registrar who shall decide the appeal within a period of forty-five days and the decision of the Central Registrar shall be final and binding."
The proviso lets the Central Registrar "entertain the appeal after the expiry of said period of one month, if he is satisfied that the society was prevented by sufficient cause from preferring the appeal in time."
Only the society has a right of appeal under this sub-section. The text gives no appeal to the member under s.85A(3); for the member whose request for information is rejected, s.106(4) names the Co-operative Ombudsman as the appellate authority, discussed in our article on the Co-operative Information Officer.
Section 85A(4) and (5): reports and powers
"The Ombudsman shall submit periodic reports to the Central Registrar of Co-operative Societies." (The text says "Central Registrar of Co-operative Societies"; elsewhere the Act uses "Central Registrar", and this article does not reconcile the two.)
While conducting the inquiry, the Ombudsman exercises the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) for:
- summoning and enforcing the attendance of persons;
- examining them on oath;
- discovery and production of books of account and other documents; and
- any other matter that may be prescribed.
Readers should check the current law for the corresponding provision of the Code of Civil Procedure, 1908. Sub-section (5) refers to inquiry "under sub-section (1)", which is where the appointment and subject matter sit; the inquiry itself is described in sub-section (2).
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Chapter IXA and s.85A | No such Chapter or section | Inserted by section 31 of the 2023 Act |
| Complaints by members | Settlement of disputes in Chapter IX (ss.84 and 85) | A separate complaint route to the Co-operative Ombudsman, with an appeal to the Central Registrar |
Related provisions: s.106(4) (appeal on information requests), and s.98(3), which lets the Central Registrar attach bank accounts for certain dues, are covered in our articles on Sections 106 and 106A and Sections 98 and 98A.
Need help with a member complaint or an appeal?
A complaint is easier to decide when the deposit records, the correspondence and the bye-laws are in order, and a society that wishes to appeal has only one month. Our team can help prepare either side under legal dispute resolution, once the facts and dates are clear.
Key takeaways
- Section 85A is new; it came with Chapter IXA, inserted by the 2023 Act, in force from 3 August 2023.
- The Central Government appoints one or more Co-operative Ombudsman with territorial jurisdiction.
- A member may complain about deposits, equitable benefits or individual rights.
- The Ombudsman has three months; the society has one month to comply or to appeal to the Central Registrar, who has forty-five days.
- The Ombudsman has civil-court powers for summoning, oath and documents; the manner of appointment and appeal is left to rules.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 84: reference of disputes to arbitration
- Sections 106 and 106A: Co-operative Information Officer and inspection of bye-laws
- Section 85: limitation for disputes referred to arbitration
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.