The Ministry of Cooperation on October 14, 2026, has mandated a new Audit Reporting Framework for Multi-State Cooperative Societies to strengthen transparency, accountability, and good governance.
The following has been stated:
• The Ministry has mandated the Multi-State Co-operative Societies (Auditor’s Report) Order, 2026, under Section 73(6) of the Multi-State Co-operative Societies Act, 2002, as amended in 2023, to strengthen transparency, accountability, financial discipline and governance in Multi-State Cooperative Societies (MSCS). Modelled on the Companies (Auditor’s Report) Order (CARO), the framework requires statutory auditors to report on financial, administrative, governance, and statutory compliance matters through a standardized format with Yes/No responses and remarks.
• It enables the Central Registrar of Cooperative Societies (CRCS) to identify high-risk societies and undertake focused inspections and regulatory interventions. The reporting requirements cover NPAs, overdue loans, liquidity, deposits, advances, repayment defaults, borrowings, investments, utilization of funds, share capital, membership records, Board composition, directors’ eligibility, general and Board meetings, statutory committees and related-party transactions.
• The framework also envisages integration of audit information with the CRCS Portal for technology-enabled monitoring and risk assessment, along with verification of cybersecurity and anti-money laundering compliance, including applicable requirements under the Prevention of Money Laundering Act.
• Implementation will be phased, initially covering larger societies crossing the ₹1,000 crore threshold, with the long-term objective of extending the framework to societies crossing the prescribed ₹50 crore threshold in relevant financial parameters.
[Press Release ID: 2323313]
