The Multi-State Cooperative Societies Amendment Bill 2022 seeks to reform governance, accountability and transparency mechanisms in multi-state cooperative societies across India.

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• Multi-State Cooperative Societies are member-owned bodies operating in more than one state and are governed under the Multi-State Cooperative Societies Act, 2002.

• The Bill proposes allowing any cooperative society to merge with an existing multi-state cooperative society through a two-thirds majority resolution.

• It establishes a Co-operative Election Authority to conduct elections, comprising a Chairperson, Vice-Chairperson and members appointed by the Central Government.

• Stricter penalties are introduced for fraud and misconduct, including fines and imprisonment for illegal gains by board members or officials.

• The Bill provides for appointment of a Co-operative Ombudsman with civil court powers to address member grievances.

• A Co-operative Rehabilitation, Reconstruction and Development Fund is proposed for revival of sick multi-state cooperative societies.

• The board composition is amended to include one Scheduled Caste or Scheduled Tribe member and two women directors.

• Critics argue the Bill undermines federalism by expanding Central control over cooperatives, including those where the Union government has financial involvement.