Section 29 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 29 lists four grounds on which a person is not eligible to be a member of a multi-State co-operative society: a business in conflict or competition with the society, failing to use the minimum level of products or services for two consecutive years, absence from three consecutive general meetings without condonation, and default in payment of amounts due under the bye-laws. The 2023 Amendment Act substituted clause (b).
The section is stated as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023). Members and societies weighing whether a ground applies can discuss the facts in a legal consultation.
No person is eligible to be a member if (a) his business is in conflict or competitive with the society's, (b) he fails to use the minimum level of the products or services specified in the bye-laws for two consecutive years (substituted in 2023), (c) he has not attended three consecutive general meetings and the absence was not condoned by the members, or (d) he has defaulted in payment of any amount due under the bye-laws. The other three grounds were not changed in 2023.
The text, clause by clause
Section 29 opens: "No person shall be eligible for being a member of a multi-state cooperative society if-".
| Clause | Ground | Notes |
|---|---|---|
| (a) | "his business is in conflict or competitive with the business of such multi-state cooperative society" | Unchanged. The Act does not define "conflict or competitive" |
| (b) | "he fails to use the minimum level of the products or services as specified in the bye-laws for two consecutive years" | Substituted in 2023 |
| (c) | "he has not attended three consecutive general meetings or the multi-state cooperative society and such absence has not been condoned by the members in the general meeting" | Unchanged; printed "or the multi-state cooperative society", which looks like a slip for "of the"; quoted as printed |
| (d) | "he has made any default in payment of any amount to be paid to the multi-state cooperative society under the bye-laws of such society" | Unchanged |
Clause (b): what changed
Before the amendment, clause (b) read "he used for two consecutive years the services below the minimum level specified in the bye-laws". The 2023 Amendment Act (section 11 of that Act) substituted: "(b) he fails to use the minimum level of the products or services as specified in the bye-laws for two consecutive years; or". Two differences follow:
- Products as well as services. The new clause covers "products or services", not only services.
- The test is failing to use the minimum level. The new wording is "fails to use the minimum level ... for two consecutive years".
The minimum level is fixed in the bye-laws, not in the Act. A bye-law may provide for "the minimum level of services, to be used by its members" (s.10(2)(zj)). Section 28 as amended also refers to a member who "has availed such minimum level of product or services as specified in the bye-laws"; see Sections 27-28.
Clause (c): meetings and condonation
The clause counts "three consecutive general meetings". Absence ceases to be a ground if it has been "condoned by the members in the general meeting". The Act does not say how many members must vote for condonation or at which meeting it may be done; it is silent on those points. The "general meeting" includes a special general meeting (s.3(m)).
Clause (d): default
The ground is "any default in payment of any amount to be paid to the multi-State cooperative society under the bye-laws". Which amounts are payable is for the bye-laws; the Act does not give a list.
What section 29 does not say
- It does not state who decides that a ground applies or how. It is phrased as a rule of eligibility ("shall be eligible") rather than as a power to remove. Expulsion is a separate matter under section 30; see Section 30.
- It does not provide a time or procedure for a disqualified person to be reinstated.
A cross-reference to flag: "active member" in section 45J
The new section 45J(1) makes "an active member of the general body" the condition for being elected to the board. Its Explanation says "active member" means any member "(i) availing minimum level of products or services of the society; or (ii) attending not less than three consecutive general meetings, as specified in section 29." Section 29 as amended, however, speaks of failure to use minimum products or services for two consecutive years and of absence from three consecutive general meetings as grounds of disqualification, while the Explanation to 45J speaks of attendance as a mark of being active. The two provisions are explained as printed and are not reconciled here; the election provisions are covered in Section 45J.
What the 2023 Amendment Act changed
| Clause | Before | After |
|---|---|---|
| (a) | As printed above | No change |
| (b) | "he used for two consecutive years the services below the minimum level specified in the bye-laws" | "he fails to use the minimum level of the products or services as specified in the bye-laws for two consecutive years" |
| (c), (d) | As printed above | No change |
A practical example
Hooghly Jute Growers Co-operative, an invented multi-State society, has a bye-law that every member must sell a minimum quantity of jute through the society each year. Biren sold none for the last two seasons. Under clause (b) as amended, he has failed to use the minimum level of the society's products or services for two consecutive years, which is a ground of ineligibility. Another member, Tara, has missed the last three general meetings; the general meeting may condone her absence, in which case clause (c) does not apply. A third member runs a rival jute trading firm; clause (a) is the relevant test.
Where a society wants to remove a member for acts detrimental to its working, the route is expulsion by a two-thirds resolution under section 30. For the wider Act, see the complete guide.
Need help with a membership dispute?
Whether a ground under section 29 applies, and what a society or member can do next, depends on the bye-laws and the facts. Our legal consultation service can review them with you.
Key takeaways
- Section 29 gives four grounds of ineligibility for membership.
- Clause (b) was substituted in 2023: failing to use the minimum level of products or services specified in the bye-laws for two consecutive years.
- Absence from three consecutive general meetings is a ground unless the members condone it (clause (c)).
- Default in payment under the bye-laws is a ground (clause (d)).
- The "active member" definition in new s.45J cites section 29 in a way that does not match its text; flagged, not reconciled.
Read next
- Sections 27-28: educational course and rights only after payment of dues
- Section 30: expulsion of members
- Section 25: persons who may become members
- MSCS vs State co-operative society: comparison
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.