India, March 18 -- The Government of India has issued a release:
The Multi-State Cooperative Societies (MSCS) (Amendment) Act& Rules, 2023 have been notified on 03.08.2023 and 04.08.2023, respectively, inter alia, to strengthen governance, enhance transparency, increase accountability and reform electoral process in the Multi State Cooperative Societies (including Banks) by supplementing existing legislation and incorporating the provisions of Ninety-seventh Constitutional Amendment. Some of the provisions introduced to curb fraudulent activities in the functioning of Multi-State Co-operative Societies and prevent financial irregularities are following:
The following provisions have been specifically introduced for early detection of financial irregularities in credit societies:
As per the provisions of Section 70 of the Multi-State Cooperative Societies Act, 2002, every multi-State co-operative society is required to appoint an auditor or auditors at each Annual General Meeting. Such auditors or auditing firms are to be selected from a panel approved by the Central Registrar. The auditor so appointed is required to submit the audit report to the multi-State co-operative society within six months from the closure of the financial year to which the accounts relate.
Further, as per Section 72 of the Multi-State Cooperative Societies Act, 2002, no person shall be qualified for appointment as an auditor of a multi-State co-operative society unless he is a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949.
This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written reply in Rajya Sabha.
Disclaimer: Curated by HT Syndication.
