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Sections 121 and 122 of the Multi-State Co-operative Societies Act, 2002: Acts not to apply and Central Government directions

Section 121(1) now says "The provisions of the Companies Act, 2013 and the Competition Act, 2002 shall not apply to the multi-State co-operative societies". Section 121(2)...

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October 2, 2026
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Last updated: October 2026Verified against: Government sources

Section 121 says that two named Acts do not apply to multi-State co-operative societies; as amended in 2023, they are the Companies Act, 2013 and the Competition Act, 2002. Section 122 lets the Central Government issue binding directions in public interest to specified multi-State co-operative societies, a term defined in the Explanation to s.123 as substituted in 2023.

This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which amended s.121(1) by its section 45. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)). Section 122 was not amended.

Section 121(1): which Acts do not apply

As amended: "The provisions of the Companies Act, 2013 (18 of 2013) and the Competition Act, 2002 (12 of 2003) shall not apply to the multi-State co-operative societies". The 2023 Act substituted these for "the Companies Act, 1956" and "the Monopoly and Restrictive Trade Practices Act, 1969". The print of the sub-section has no full stop at its end.

Two printing points. The principal copy names "the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969)"; the amending clause quotes the words to be replaced as "the Monopoly and Restrictive Trade Practices Act, 1969". The words differ by a letter or two, and the same Act number (54 of 1969) appears beside both in the gazette; this article reads them as the same Act and flags the variation without reconciling it further.

For what this means in practice, readers should check the current law for the corresponding provisions of both Acts. Our post on producer company vs co-operative society: key differences, is about a Companies Act, 2013 vehicle, not about this Act.

Section 121(2): the sub-section the amendment did not touch

"The multi-state Cooperative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969)."

The amending clause in the 2023 Act is confined to sub-section (1): its words are "in sub-section (1), for the words and figures". Sub-section (2) therefore still refers to the 1969 Act, while sub-section (1) now names the Competition Act, 2002. The sources do not explain how the two sub-sections fit together, and this article does not reconcile them: it quotes both as printed.

Section 122: directions in public interest

The heading in the print is "Central Government's power to give directions to specified multi-state cooperative societies in public interest". If the Central Government "is satisfied that in the public interest or for the purposes of securing proper implementation of cooperative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of the business of the specified multi-state cooperative societies generally or for preventing the affairs of such society being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions", it may issue directions "to any class of specified multi-state cooperative societies generally or to any specified multi-state cooperative society or societies in particular, ... from time to time". Such societies "shall be bound to comply with such directions".

ElementWords of the section
Who actsThe Central Government, if "satisfied"
PurposesPublic interest; implementation of cooperative production and other developmental programmes approved or undertaken by the Central Government; proper management of the business of specified societies generally; preventing affairs being conducted in a manner detrimental to members, depositors or creditors
To whomAny class of specified societies, or one or more in particular
Effect"shall be bound to comply"

Failure to comply with directions given under s.122 is also one of the grounds for supersession in s.123, as amended; see our article on supersession of the board.

Who is a "specified multi-State co-operative society"

The word "specified" is defined by the Explanation to s.123, as substituted in 2023, "For the purposes of section 122 and this section": "the expression 'specified multi-State co-operative society' means any multi-State co-operative society where there is Government shareholding or loan or financial assistance or any guarantee by the Government."

The Explanation does not state any threshold of shareholding, loan or assistance. The old Explanation printed in the principal copy used a different test (fifty-one per cent. of paid-up share capital or total shares held by the Central Government), and the new one replaced it. The text of the new Explanation says "Government", not "Central Government", and does not say whether a State Government counts. This article does not decide that.

Example. A State Government has given a loan to the invented Mahi Multi-State Dairy Society. Under the Explanation as substituted, a multi-State co-operative society where there is Government "loan or financial assistance or any guarantee" is a specified society, so s.122 directions can reach it. A society in that position can ask for legal consultation on how a direction affects its board.

What the 2023 Amendment Act changed

ProvisionBeforeAfter
s.121(1)Companies Act, 1956 and the Monopolies and Restrictive Trade Practices Act, 1969 do not applyCompanies Act, 2013 and Competition Act, 2002 do not apply
s.121(2)Refers to the 1969 ActNot amended; still refers to the 1969 Act
s.122As printed aboveNot amended
Explanation to s.123Not less than fifty-one per cent. of paid-up share capital or total shares held by the Central GovernmentGovernment shareholding or loan or financial assistance or any guarantee by the Government

Need help with a direction or an applicable-law question?

Whether a society is "specified", what a direction covers and which laws apply to it are questions that turn on the society's funding and its bye-laws. Our team can review them with you through legal consultation.

Key takeaways

  • Section 121(1) now disapplies the Companies Act, 2013 and the Competition Act, 2002.
  • Section 121(2) still refers to the 1969 Act; the print of the two sub-sections is quoted as it stands.
  • The Central Government may issue binding directions to specified societies in public interest under s.122.
  • A specified society is one with Government shareholding, loan, financial assistance or guarantee.
  • Failure to comply with a s.122 direction can lead to supersession under s.123.

Read next

Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Sections 121 and 122

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does the Companies Act, 2013 apply to a multi-State co-operative society?

Section 121(1) says its provisions shall not apply to the multi-State co-operative societies.

Was s.121(2) changed in 2023?

No. It still refers to the Monopolies and Restrictive Trade Practices Act, 1969.

Registration is not permanent — note its validity and apply for renewal well inside the window.

— TaxClue NGO & Trust Desk

Sections 121 and 122: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 5 questions readers ask most on this topic.

Section 121(1) says its provisions shall not apply to the multi-State co-operative societies.

No. It still refers to the Monopolies and Restrictive Trade Practices Act, 1969.

The Central Government, if satisfied that it is necessary, to any class of specified societies or to one or more in particular.

Yes: the section says specified societies "shall be bound to comply with such directions".

One where there is Government shareholding or loan or financial assistance or any guarantee by the Government, under the Explanation to s.123 as substituted.