A multi state cooperative society having such number or class of employees as may be prescribed may establish a contributory provident fund for the benefit of such employees to which shall be credited all contributions made by the employees and the society in accordance with the bye laws of the society. Monies standing to the credit of any contributory provident fund established by a cooperative society under sub-section.
a. be used in the business of the society ; b. form part of the assets of the society ;c. be liable to attachment or be subject to any other process or any court or other authority. Notwithstanding anything contained in this section, a provident fund established by a multi state cooperative society registration to which the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, apply, shall be governed by that Act. It is proposed to define active member to ensure the member's active participation in the affairs of the society. Time bound decision by the society for admitting members is proposed to prevent inordinate delay by the society in admitting members. A clause is proposed to be inserted for ensuring that the members make their payment due to the society to be eligible for exercising their rights as a member. It is proposed to allow the multi state cooperative societies to refund full or part of the share capital subscribed by the Government to reduce/eliminate Government control of these cooperatives. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. multi state co-operative societies Act, 2002 Since ‘Cooperative Societies’ is a State Subject , the cooperative societies formed under State Acts have to restrict their activities to only one State. This hinders growth of cooperative societies. Hence, Multi State Cooperative societies Act was passed in 1942. It was later replaced by 1984 Act. This 1984 Act is now being replaced by 2002 Act. The 2002 Act has already been passed but has not yet been made effective. The 2002 Act makes special provision for registration and functions of Federal cooperative society registration.