Section 25 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 25 says who can be admitted as a member of a multi-State co-operative society. The list in sub-section (1) runs from individuals competent to contract to the Central and State Governments, certain Government bodies and, with the Central Registrar's permission, other classes. Sub-section (2) bars individuals from national co-operative societies and federal co-operatives. Sub-sections (3) to (5) deal with admission on application, the four-month period for deciding, deemed refusal, and the duty of every member to promote the society.
The section is read as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023. It was not amended in 2023, but the new section 35 refers to clauses (c) to (g) of sub-section (1). Questions about who can be admitted, or about a refused application, can be raised in a legal consultation.
No person may be admitted as a member except those listed in s.25(1): an individual competent to contract, a multi-State or other co-operative society, the Central Government, a State Government, the National Cooperative Development Corporation, Government-owned or controlled corporations and Government companies, and classes permitted by the Central Registrar. No individual can join a national co-operative society or federal co-operative. An application must be disposed of within four months, and the decision communicated within fifteen days, failing which admission is deemed refused. Section 25 was not amended in 2023.
Sub-section (1): the closed list
"No person shall be admitted as a member of a multi-state cooperative society except the following, namely-". The list as printed has eight clauses:
| Clause | Who |
|---|---|
| (a) | "an individual, competent to contract under section 11 of the Indian Contract Act, 1872 (9 of 1872)" |
| (b) | "any multi-state cooperative society or any cooperative society" |
| (c) | "the Central Government" |
| (d) | "a State Government" |
| (e) | "the National Cooperative Development Corporation established under the National Cooperative Development Corporation Act, 1962 (26 of 1962)" |
| (f) | "any other corporation owned or controlled by the Government" |
| (g) | "any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956)" |
| (h) | "such class or classes or persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-state cooperative society" |
The Acts named in clauses (a), (e) and (g) are quoted as printed. The reader should check the current law for the corresponding provision of each. Clause (h) is printed "class or classes or persons or association of persons", where "or persons" appears to be a slip for "of persons"; it is quoted as printed.
Clauses (c) to (g) are the "authorities" that sections 33 and 35 refer to (section 31(c) refers to clauses (b) to (g)). Section 33 exempts "the authorities referred to in clauses (c) to (g)" from the cap on holding of shares, and section 35, as substituted in 2023, regulates redemption of their shares; see Sections 33-35. The Act does not name clause (h) among those authorities.
Sub-section (2): the bar on individuals
"No individual person shall be eligible for admission as a member of a national cooperative society or a federal cooperative." A national co-operative society is one specified in the Second Schedule (s.3(r)); a federal co-operative has only societies as members (s.3(k)). The sub-section does not say who may join them; that follows from the other clauses of sub-section (1).
Sub-section (3): admission on application
"Any person eligible for membership of a multi-state cooperative society may, on his application, be admitted as a member by such society." Eligibility is a matter of sub-section (1) and the bye-laws (s.10(2)(d), (e): eligibility and procedure for obtaining membership). The word "may" leaves the society with a decision to make on each application.
Sub-section (4): four months, fifteen days, deemed refusal
- "Every application for admission as a member of a multi-state cooperative society shall be disposed of by such society within a period of four months from the date of receipt of the application."
- "The decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision."
- Proviso: "if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-state cooperative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant."
So silence is a refusal, not an admission: the opposite of the deemed registration rule that applies to the Central Registrar in section 7. The Act does not say what remedy an applicant has after a deemed refusal; the Act's dispute provisions are in later chapters.
Sub-section (5): the duty of a member
"It shall be the duty of every member of a multi-state cooperative society to promote and protect the interests and objects of such society." The sub-section states the duty without a penalty. Later provisions deal with disqualification (s.29), expulsion (s.30) and rights tied to dues (s.28); see Section 29.
A practical example
Pavana Weavers Co-operative, an invented multi-State society, receives an application from Meena, an adult of sound mind who weaves cloth. She is an "individual competent to contract" (clause (a)), so she is eligible. A State Government department also applies to take shares; as a State Government it is eligible under clause (d). A third applicant, a registered partnership firm of traders, is not listed in clauses (a) to (g). It could be admitted only if the Central Registrar has permitted its class or association under clause (h). The society must decide each application within four months and tell the applicant within fifteen days of deciding; if it does neither, the applicant is deemed refused.
For the documents and rights that follow membership, see Section 26: nominal or associate member. The wider Act is in the complete guide.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 25(1) to (5) | As printed above | No change |
| Related: new section 35 | Old s.35 on authorities in clauses (c) to (g) | New s.35 treats clauses (c) and (d) separately from clauses (e) to (g) |
Need help with membership questions?
Whether an applicant is eligible, how long a decision may take, and what a refusal means in practice are common sources of friction. A legal consultation can read your bye-laws and your pending applications against section 25.
Key takeaways
- Only the persons listed in section 25(1) can be admitted as members; the list is closed.
- No individual may join a national co-operative society or a federal co-operative.
- An application must be disposed of within four months and the decision communicated within fifteen days.
- If those periods pass, the society is deemed to have refused admission.
- Every member has a duty to promote and protect the society's interests and objects.
- Section 25 was not amended in 2023.
Read next
- Section 26: nominal or associate member and non-voting shares
- Sections 27-28: educational course and rights only after payment of dues
- Section 29: disqualification for being a member
- Multi-State Co-operative Societies Act, 2002: complete guide
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.