Unit 3: Co-operative Administration
Co-operative Administration
Co-operative Administration means the system of governance and regulation that ensures cooperatives work efficiently, legally, and according to cooperative principles.
It involves the State Government, the Central (Union) Government, and the Registrar of Cooperative Societies, who together guide, support, and supervise cooperative societies.
Role of the State Government in Co-operative Administration
In India, cooperation is a State subject (as per the Constitution, List II – State List). That means State Governments are mainly responsible for the formation, regulation, and control of cooperative societies within their state.
Main Roles of the State Government
| Role | Explanation (in simple words) |
|---|---|
| 1. Framing Cooperative Laws | Each state makes its own Cooperative Societies Act and Rules to regulate cooperatives (e.g., Uttar Pradesh Cooperative Societies Act). |
| 2. Registration of Societies | Through the Registrar of Cooperative Societies, the state approves and registers new cooperatives. |
| 3. Supervision and Inspection | Ensures cooperatives follow laws, bye-laws, and democratic principles. |
| 4. Financial Assistance | Provides financial help like loans, subsidies, and grants to support cooperatives. |
| 5. Training and Education | Establishes training institutes to develop professional management skills among members and employees. |
| 6. Audit and Control | Conducts audits to maintain transparency in accounts and management. |
| 7. Policy Formation | Designs policies to promote growth of cooperatives in agriculture, banking, dairy, housing, etc. |
| 8. Promotion and Expansion | Encourages the setting up of new cooperatives in rural and urban areas for social and economic development. |
Example: The U.P. Cooperative Department supports dairy, sugar, and credit cooperatives by providing funds, technical help, and training.
Role of the Union (Central) Government in Co-operative Administration
Although cooperation is mainly a State subject, the Central Government plays an important supportive and coordinating role — especially in national-level policies and multi-state cooperatives.
Main Roles of the Union Government
| Role | Explanation |
|---|---|
| 1. Policy Support and Coordination | Frames national policies for the overall development of cooperatives across India. |
| 2. Legislation for Multi-State Cooperatives | Passed the Multi-State Cooperative Societies Act, 2002, for cooperatives working in more than one state. |
| 3. Institutional Support | Established national-level bodies like: – National Cooperative Development Corporation (NCDC) – National Cooperative Union of India (NCUI) – National Bank for Agriculture and Rural Development (NABARD) for credit support. |
| 4. Financial Assistance | Provides loans, grants, and subsidies through NCDC, NABARD, and other agencies. |
| 5. Education and Training | Supports national institutions like VAMNICOM (Pune) and NCCT for cooperative education and leadership training. |
| 6. Monitoring and Research | Conducts studies and collects data on cooperative performance at the national level. |
| 7. New Ministry for Cooperation (2021) | The Government of India established a separate Ministry of Cooperation to strengthen cooperative movement and ensure “Prosperity through Cooperation.” |
Example: The Central Government helps multi-state cooperatives like IFFCO (Indian Farmers Fertilizer Cooperative) and AMUL through policy and financial support.
Role, Powers, and Functions of the Registrar of Cooperative Societies
The Registrar of Cooperative Societies (RCS) is a senior government officer (usually under the State Cooperative Department) responsible for supervising, guiding, and regulating all cooperative societies within the state.
The Registrar ensures that cooperatives:
- Follow the law and bye-laws
- Work democratically and transparently
- Protect the interest of members and the public
A. Roles and Powers of the Registrar
| Role / Power | Explanation (Simple Words) |
|---|---|
| 1. Registration Power | Approves and registers new cooperative societies after verifying their objectives and feasibility. |
| 2. Amendment Approval | Approves any changes in bye-laws proposed by the cooperative. |
| 3. Supervision and Inspection | Has the power to inspect books, accounts, and records of any cooperative society. |
| 4. Audit Control | Can order audit of accounts by government or authorized auditors. |
| 5. Inquiry and Investigation | May initiate an inquiry into the working of a cooperative if complaints or irregularities arise. |
| 6. Dispute Settlement | Acts as an arbitrator to settle disputes among members or between society and members (as per Section 70 of most State Acts). |
| 7. Suspension or Dissolution | Can suspend or dissolve the board or management committee in cases of fraud, mismanagement, or violation of law. |
| 8. Appointment of Administrator | May appoint an administrator to manage the society temporarily when the board is suspended. |
| 9. Election Supervision | Oversees or conducts elections for the Board of Directors to ensure fairness. |
| 10. Liquidation | If a cooperative becomes insolvent or inactive, the Registrar can order its liquidation (closure) and appoint a liquidator. |
B. Functions of the Registrar
| Function | Explanation (in Simple Words) |
|---|---|
| Administrative Function | Controls registration, regulation, and general administration of cooperatives. |
| Advisory Function | Advises cooperatives on management, finance, and legal matters. |
| Developmental Function | Promotes formation of new cooperatives and supports their growth. |
| Regulatory Function | Ensures societies follow cooperative laws, bye-laws, and democratic principles. |
| Supervisory Function | Monitors performance, orders inspections, and ensures accountability. |
C. Importance of the Registrar
- Maintains discipline and transparency in cooperative operations.
- Protects members’ interests and ensures fair elections.
- Helps in policy implementation and development of cooperatives at the state level.
In short: The Registrar acts as the watchdog, guide, and guardian of the cooperative movement in the state.
Summary Table
| Authority | Main Role | Key Functions |
|---|---|---|
| State Government | Regulates and promotes cooperatives in the state | Legislation, registration, audit, training, financial help |
| Union Government | Policy support at national level | Multi-state cooperative laws, national institutions (NCDC, NCUI, NABARD), ministry |
| Registrar of Cooperatives | Administers and supervises cooperatives | Registration, inspection, dispute settlement, elections, dissolution |
Conclusion
Cooperative Administration ensures that cooperatives work ethically, democratically, and efficiently.
The State and Central Governments create the framework, while the Registrar acts as the key authority to guide, control, and protect cooperatives.
“Strong cooperative administration builds strong cooperatives — and strong cooperatives build a strong economy.”
Co-operative Department and Administration in India
The Co-operative Department is an important part of the State Government that looks after the organization, registration, regulation, and development of cooperative societies in the state.
This department works under the overall supervision of the Registrar of Cooperative Societies (RCS) and the Ministry of Cooperation (at the Central level).
Co-operative Department Setup in States
Each Indian state has a Co-operative Department to promote and regulate cooperative activities such as credit, agriculture, dairy, housing, and marketing.
Structure of the Co-operative Department (State Level)
| Level | Designation / Authority | Functions |
|---|---|---|
| 1. State Level | Registrar of Cooperative Societies (RCS) | Head of the Co-operative Department; overall administration, supervision, and guidance of all cooperatives. |
| 2. Regional / Divisional Level | Joint Registrar / Additional Registrar | Supervise and guide cooperatives in their respective divisions. |
| 3. District Level | Deputy Registrar / Assistant Registrar | Handle registration, inspection, audit, and dispute resolution at the district level. |
| 4. Block / Taluka Level | Co-operative Officers / Inspectors | Field-level officers who monitor day-to-day functioning of local cooperatives. |
Main Functions of the State Co-operative Department
| Function | Explanation (in Simple Words) |
|---|---|
| 1. Policy Implementation | Implements cooperative development policies framed by the State Government. |
| 2. Registration & Regulation | Registers new cooperative societies and ensures they follow cooperative laws and bye-laws. |
| 3. Financial Support | Provides subsidies, grants, and financial help to cooperative societies. |
| 4. Audit & Inspection | Conducts audits and inspections to maintain transparency and accountability. |
| 5. Training & Education | Organizes programs to train cooperative managers, board members, and employees. |
| 6. Promotion & Supervision | Promotes new cooperatives and supervises their smooth functioning. |
| 7. Election Oversight | Ensures fair and democratic elections of cooperative boards. |
Functional Registrars
Since cooperatives work in different sectors (like banking, sugar, dairy, housing, etc.), each area requires specialized supervision.
Therefore, some states appoint Functional Registrars — specialized officers who handle cooperatives related to a specific function or sector.
Examples of Functional Registrars
| Functional Registrar | Area of Responsibility |
|---|---|
| Registrar (Cooperative Credit & Banking) | Supervises cooperative banks, credit societies, and rural financial cooperatives. |
| Registrar (Cooperative Sugar Factories) | Regulates sugar cooperatives related to production, marketing, and finance. |
| Registrar (Dairy Cooperatives) | Looks after dairy cooperatives like milk unions and milk producer societies. |
| Registrar (Marketing & Consumer Cooperatives) | Monitors cooperatives involved in agricultural marketing and consumer goods. |
| Registrar (Housing Cooperatives) | Regulates housing societies and ensures compliance with property and housing laws. |
Example: In Maharashtra, separate Functional Registrars exist for Dairy, Sugar, Housing, and Credit cooperatives due to the large number of societies in each sector.
Delegation of Powers and Functions of the Registrar
The Registrar of Cooperative Societies (RCS) is the head of the department, but since the number of cooperatives is huge, it’s not possible for one person to handle everything.
Therefore, the Registrar delegates (assigns) some powers and duties to other officers for better efficiency.
Purpose of Delegation
- To ensure quick decision-making
- To improve administrative efficiency
- To handle local-level issues effectively
- To make supervision and inspection easier
Examples of Delegated Powers
| Level / Officer | Delegated Powers |
|---|---|
| Joint Registrar | Can approve amendment of bye-laws, sanction loans, and supervise district-level officers. |
| Deputy Registrar | Can register new societies, approve membership applications, and inspect records. |
| Assistant Registrar | Handles day-to-day functioning, conducts elections, and assists in audits and inquiries. |
| Co-operative Inspectors / Officers | Collect field reports, monitor society performance, and assist higher officers. |
Legal Provision
Under the State Cooperative Societies Act, the Registrar has the authority to delegate specific powers in writing to any subordinate officer.
For example, Section 3(2) of most State Cooperative Acts provides for such delegation.
Ministry of Cooperation (Central Government)
The Ministry of Cooperation was created in July 2021 by the Government of India to give a new push to the cooperative movement and to bring “Sahkar se Samriddhi” (Prosperity through Cooperation).
Objectives of the Ministry
| Objective | Explanation (in Simple Words) |
|---|---|
| 1. Strengthen Cooperative Movement | Support and modernize cooperative institutions across the country. |
| 2. Create a National Cooperative Policy | Frame new policies for development, transparency, and accountability. |
| 3. Promote Ease of Doing Business | Simplify registration, audit, and governance of cooperatives. |
| 4. Support Digitalization | Encourage computerization of PACS (Primary Agricultural Credit Societies) and other cooperatives. |
| 5. Empower Small Farmers and Members | Increase participation of farmers, women, and youth in cooperative activities. |
| 6. Coordinate with States | Work with State Governments for uniform growth of cooperatives across India. |
Key Institutions under the Ministry of Cooperation
| Institution | Role / Function |
|---|---|
| National Cooperative Development Corporation (NCDC) | Provides financial and technical support to cooperatives. |
| National Cooperative Union of India (NCUI) | Represents and promotes the interests of cooperatives nationwide. |
| National Council for Cooperative Training (NCCT) | Trains cooperative personnel and managers. |
| Multi-State Cooperative Societies (MSCS) Office | Regulates cooperatives operating in more than one state. |
Important Initiatives by the Ministry
| Initiative | Purpose |
|---|---|
| Computerization of PACS | To improve efficiency and transparency in rural cooperative credit societies. |
| Formation of National Cooperative Database | To maintain updated information about all cooperative societies in India. |
| New National Cooperative Policy (Proposed) | To reform laws, governance, and digital operations of cooperatives. |
| Support to Multistate Cooperatives like IFFCO, KRIBHCO, and AMUL | For modernization and international competitiveness. |
Summary Table
| Topic | Key Points |
|---|---|
| Cooperative Department Setup | Organized at state level with Registrar as head and officers at district and block levels. |
| Functional Registrars | Specialized officers handling specific sectors like credit, sugar, dairy, housing, etc. |
| Delegation of Powers | Registrar delegates powers to subordinates for efficient administration. |
| Ministry of Cooperation | Formed in 2021; central body to promote, reform, and digitize the cooperative sector. |
Conclusion
The Co-operative Department, through its well-structured hierarchy, ensures that cooperatives function efficiently, democratically, and transparently.
Functional Registrars and delegated powers make the system more effective and decentralized.
At the national level, the Ministry of Cooperation provides a vision and policy framework for strengthening India’s cooperative movement.
“Strong administration + professional management = sustainable cooperative growth.”