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Section 30 of the Multi-State Co-operative Societies Act, 2002: Expulsion of Members

A society may expel a member for acts which are detrimental to the proper working of the society, by a resolution of not less than two-thirds of the members present and voting at...

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Trust & Society
Published
October 2, 2026
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Oct 2, 2026
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Last updated: October 2026Verified against: Government sources

Section 30 lets a multi-State co-operative society expel a member for acts detrimental to the proper working of the society, but only by a resolution of not less than two-thirds of the members present and voting at a general meeting held for the purpose, and only after the member has had a reasonable opportunity to make a representation. An expelled member cannot be re-admitted for a period which, since the 2023 Amendment Act, is three years from the date of expulsion (it was one year).

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). Disputes over expulsion are common and sensitive; a society or member facing one can seek advice through our legal dispute resolution team.

Sub-section (1): how to expel

The sub-section reads: "A multi-state cooperative society may, by resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society".

Four conditions come out of the words:

ConditionText
Ground"acts which are detrimental to the proper working of the society"
AuthorityThe general meeting, not the board alone
Majority"not less than two-thirds of the members present and voting"
Purpose of the meetingA general meeting "held for the purpose"

The proviso. "Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter." So a resolution passed without giving the member that opportunity cannot validly expel him. The Act does not set out how the opportunity is to be given, its length or its form, and it does not name the person who receives the representation; it is silent on those points. The bye-laws may provide for "the procedure for expulsion from membership" (s.10(2)(i)), and expulsion is also a matter for the annual general meeting under section 39(1)(k). See Section 39.

The ground in section 30 ("acts which are detrimental to the proper working of the society") is different from the grounds of ineligibility in section 29, such as failure to use a minimum level of products or services; see Section 29.

Sub-section (2): the bar on re-admission

"No member of the multi-State co-operative society, who has been expelled under sub-section (1), shall be eligible for re-admission as a member of that society, for a period of three years from the date of such expulsion."

The 2023 Amendment Act (section 12 of that Act) substituted "three years" for "one year". The bar runs "from the date of such expulsion", and it applies to "that society" only: the sub-section does not stop the expelled member from joining another society. The Act does not say what the date of expulsion is, for example the date of the resolution or the date of communication to the member; it is silent on that point.

What the 2023 Amendment Act changed

ProvisionBeforeAfter
Section 30(1) and provisoAs printed aboveNo change
Section 30(2)"for a period of one year from the date of such expulsion""for a period of three years from the date of such expulsion"

Practical steps for a society (a suggested order, not one the Act prescribes)

  1. Check the bye-laws for the procedure for expulsion (s.10(2)(i)).
  2. Frame the allegation as acts detrimental to the proper working of the society, in writing.
  3. Give the member a reasonable opportunity to make a representation before the meeting.
  4. Call a general meeting for the purpose, with the notice the bye-laws require.
  5. Count the vote: not less than two-thirds of members present and voting.
  6. Record the resolution and the representation in the minutes. The minutes of general meetings are the subject of a later section of the Act.

A practical example

Gomti Sugar Co-operative, an invented multi-State society, learns that one member, Suresh, has been diverting cane meant for the society to a rival mill and urging others to do the same. The board sends him a written notice of the allegation and invites a written reply. Suresh replies, denying it. The board calls a general meeting held for the purpose. Of the 450 members present and voting, 320 vote for expulsion; two-thirds of 450 is 300, so the resolution passes. Suresh cannot apply for re-admission to this society for three years from the date of expulsion. If the society had expelled him without hearing him, the proviso to sub-section (1) would be breached.

A member who is expelled and thinks the process was defective can look at the dispute provisions of the Act; see the complete guide for where they sit.

Need help with an expulsion or a challenge to one?

A defective notice or a miscounted vote can undo an expulsion. If you are on either side of one, our legal dispute resolution team can examine the bye-laws, the notice and the record of the meeting.

Key takeaways

  • Expulsion needs a resolution of not less than two-thirds of members present and voting at a general meeting held for the purpose.
  • The ground is acts detrimental to the proper working of the society.
  • The member must have a reasonable opportunity of making representation.
  • An expelled member is barred from re-admission to that society for three years from the date of expulsion (changed from one year in 2023).
  • Section 30(1) was not amended in 2023.

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 Section 30

  • 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.

What majority is needed to expel a member?

Not less than two-thirds of the members present and voting at a general meeting held for the purpose (s.30(1)).

Must the member be heard?

Yes. The proviso says he shall not be expelled unless he has been given a reasonable opportunity of making representation.

What is not written down will be remembered differently by everyone involved.

— TaxClue Compliance Desk

Section 30: 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 6 questions readers ask most on this topic.

Not less than two-thirds of the members present and voting at a general meeting held for the purpose (s.30(1)).

Yes. The proviso says he shall not be expelled unless he has been given a reasonable opportunity of making representation.

Three years from the date of expulsion (s.30(2), as amended in 2023).

One year.

Section 30(1) requires a resolution at a general meeting of members held for the purpose.

The text speaks of re-admission to "that society" only.