The failure of multi state cooperative society can be attributed to dormant membership and lack of active participation of members in the funds management in cooperative society. Mounting over dues in credit cooperative society institutions, lack of mobilization of internal resources and over dependence on government assistance, lack of professional management, bureaucratic control and interference in the management, political interference and over-politicization have proved harmful to their growth. These are the areas which need to be attended to by evolving suitable legislative and policy support. For the success of any developmental effort in the agricultural sector is to synergize with the efforts in the cooperative sector. Development of cooperative society sector has many benefits. It will involve all sections of the society in development efforts. Cooperative sector of Indian economy has a spiritual content too when it was led by Viola Behave. Cooperative society has inbuilt democracy and only those who can demonstrate their commitment and efficiency can survive in the cooperative elections. Nowadays most of the financial institutions in the cooperative sector are also run on purely commercial basis. It is here that the State intervention can make the difference. The grant, subsidies and aid meant for the poor farmers must be channeled through the cooperative sector. Once there are enough resources in the sector in terms of money there will be increased participation by the people and will result in the all round development of the village. Pantheist Raja institutions and cooperative sector can bring about positive change in the rural areas. cooperatives society have extended across the entire country and there are currently estimated 230 million members nationwide. The multi state society system has the largest network in the world and cooperatives have advanced more credit in the Indian agricultural sector than commercial banks. In fertilizer production and distribution the Indian Fertilizer Cooperative commands over 35% of the market. In the production of sugar the cooperative share of the market is over 58% and in cotton they have share of 60%. The cooperative society accounts for 55% of the looms in the hand-weaving sector cooperative process, market and distribute 50% of the edible oil. Dairy cooperative operating under the leadership of the National Dairy Development Board and through 15 state cooperative milk marketing federations as now become the largest producer of milk. With the rapid growth of the cooperative sector a supportive climate has been created for the development of cooperatives with the opportunities for diversification.