Sections 98 and 98A 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 98 provides for recovery of sums due to the Central Government or a State Government as arrears of land revenue, and, since 2023, lets the Central Registrar attach bank accounts of defaulting societies for three kinds of dues. Section 98A, new in 2023, allows a review of the Central Registrar's decision, with conditions on deposit and time.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which amended s.98 (section 34) and inserted s.98A (section 35). The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)).
Sums due to the Government from a society, officer, member or past member are recovered on a Central Registrar's certificate as arrears of land revenue, as a first charge on assets. Since 2023 the Central Registrar can also attach bank accounts of defaulting societies to recover the co-operative education fund, the Co-operative Rehabilitation, Reconstruction and Development Fund and the expenses of the Co-operative Election Authority. Under s.98A a party may seek review, but a recovery certificate review needs a deposit of fifty per cent. and an application within sixty days.
Section 98(1): sums due to Government
"All sums due from a multi-state cooperative society, or from an officer or member or past member of a multi-state cooperative society, to the Central Government or a State Government, including any cost awarded to the Central Government or the State Government, as the case may be, under any provision of this Act, may, on a certificate issued by the Central Registrar in this behalf, be recovered in the same manner as arrears of land revenue as first charge on the assets of such society or officer or member, as the case may be."
Two things stand out: the certificate comes from the Central Registrar, and the recovery is a "first charge" on the assets of the society, officer or member. A society that owes Government dues should check its position early, and for contested recovery see legal dispute resolution.
Section 98(2): order of recovery
Sums due from a society to the Government and recoverable under sub-section (1) "may be recovered firstly from the property of the society and secondly from the members, past members or the estates of deceased members, subject to the limit of their liability". The proviso says the liability of past members and the estate of deceased members "shall in all cases be subject to the provisions of section 37".
Section 98(3): attachment of bank accounts (new in 2023)
"The Central Registrar shall also have the power to recover the following dues by attaching bank accounts of defaulting multi-State co-operative societies":
| Clause | Dues |
|---|---|
| (a) | "the co-operative education fund referred to in clause (b) of sub-section (1) of section 63" |
| (b) | "the Co-operative Rehabilitation, Reconstruction and Development Fund established under section 63A" |
| (c) | "the expenses incurred by the Co-operative Election Authority for conduct of elections" |
The sub-section does not say how the attachment is made, what notice is required, or whether the s.98(1) certificate is also needed. The sources are silent. Whether the Fund or the Authority has been set up or notified is not stated in the sources, and this article says nothing on it.
Example. The invented Mahanadi Multi-State Credit Society has not paid its contribution to the co-operative education fund. Under s.98(3)(a) the Central Registrar may recover it by attaching the society's bank account. The society's remedy against a decision in this field is explained below.
Section 98A: review of decision (new in 2023)
"The Central Registrar may, on an application received from any party, review his decision under clause (a) or clause (b) or clause (c) of sub-section (1) of section 94." Section 94 as printed has no numbered sub-section; its clauses (a), (b) and (c) follow the opening paragraph. This cross-reference is quoted as printed, and not reconciled. Our article on execution of decisions and orders explains s.94.
Three provisos limit the power:
- "no application for review shall be entertained against the recovery certificate issued by the Central Registrar or by any person authorised by him in writing in this behalf, unless the applicant deposits with the concerned society, fifty per cent. of the amount of the recoverable dues";
- "no application for review shall be entertained, if made after sixty days of the date of receipt of the decision or order"; and
- the Central Registrar "may entertain any such application made after such period, if the applicant satisfies that he had sufficient cause for not making the application within such period".
| Condition | As printed |
|---|---|
| Deposit | Fifty per cent. of the recoverable dues, with "the concerned society" |
| Time | Sixty days from receipt of the decision or order |
| Late application | Allowed on sufficient cause |
The first proviso names a deposit "with the concerned society", not with the Central Registrar or the Collector; the text is printed that way, and this article does not alter it. Section 98A is a review by the Central Registrar of his own decision; the separate review of the appellate authority's order is in s.101. See our article on review and interlocutory orders.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.98(1), (2) | As printed above | Not amended |
| s.98(3) | No such sub-section | Inserted: attachment of bank accounts for the education fund, the Fund under s.63A and election expenses |
| s.98A | No such section | Inserted: review of decisions under s.94, with deposit of fifty per cent., sixty days and sufficient-cause proviso |
Need help with a recovery certificate or a review?
A recovery certificate has time limits and a deposit condition, and an attached bank account stops day-to-day operations. If you are the society, an officer or a member, we can read the certificate and the dates with you through legal dispute resolution.
Key takeaways
- Government dues are recovered as arrears of land revenue, as a first charge, on a Central Registrar's certificate.
- Recovery goes first against the society's property, then against members and past members, within their liability and subject to s.37.
- Since 2023 the Central Registrar may attach bank accounts for three kinds of dues.
- Section 98A review needs a fifty per cent. deposit for a recovery certificate and an application within sixty days, with a sufficient-cause proviso.
- The cross-reference to "sub-section (1) of section 94" does not match the print of s.94.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Sections 94 and 95: execution of decisions and orders
- Sections 101 and 102: review and interlocutory orders
- Section 85A: Co-operative Ombudsman, complaints and appeal
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.