Section 70 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 70 requires every multi-State co-operative society to have its accounts audited at least once a year by an auditor appointed at the annual general meeting. The 2023 Amendment Act changed who may be appointed (a panel approved by the Central Registrar), added a six-month deadline for the audit report, changed the vacancy rule on resignation or death, and added a rule that the audit report of national co-operative societies is laid before Parliament. This article states the section as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
The society must have its accounts audited at least once in each year. At each annual general meeting it appoints an auditor to hold office until the next one and gives him intimation within seven days. After 2023 the auditor shall be appointed from a panel approved by the Central Registrar, and for banks and for credit and non-credit societies above five hundred crore rupees the panel is the one approved for such societies. The auditor must submit the audit report within six months of the close of the financial year.
Section 70(1) and (2): annual audit and appointment
Sub-section (1): "Every multi-state cooperative society shall cause to be audited by an auditor referred to in sub-section (2), its accounts at least once in each year."
Sub-section (2): the society "shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed."
The two provisos after 2023
The 2023 Amendment Act (Act 11 of 2023, in force from 3 August 2023 by notification S.O. 3493(E)) substituted the single proviso with two:
- "Provided that such auditors or auditing firm shall be appointed from a panel approved by the Central Registrar:"
- "Provided further that in case of multi-State co-operative banks, multi-State credit societies with deposits of above five hundred crore rupees and multi-State non-credit societies with turnover of above five hundred crore rupees, the auditor shall be appointed from a panel of auditors approved for audit of such societies by the Central Registrar."
| Class of society | Threshold printed | Panel |
|---|---|---|
| Any multi-State co-operative society | None | A panel approved by the Central Registrar |
| Multi-State co-operative banks | None | A panel of auditors approved for audit of such societies by the Central Registrar |
| Multi-State credit societies | Deposits of above five hundred crore rupees | Same |
| Multi-State non-credit societies | Turnover of above five hundred crore rupees | Same |
The old proviso allowed appointment from a panel approved by the Central Registrar or from a panel prepared by the society, if any. The new first proviso uses "shall", and the panel is the Central Registrar's. The sources do not say whether, or when, such panels have been approved; we assert nothing on that either way. The first proviso speaks of "auditors or auditing firm" while section 72(1) allows only a chartered accountant and section 72(2)(a) disqualifies a body corporate; see our note on concurrent audit, auditor resolutions and qualifications. The Act does not reconcile these in section 70.
If you are mapping your society against the five hundred crore rupees classes, our legal due diligence team can help you check the figures.
Section 70(3) and (3A): acceptance and the six-month report
Sub-section (3): every auditor appointed "under sub-section (1)" shall, within thirty days of receipt of the intimation of his appointment, inform the Central Registrar in writing that he has accepted or refused to accept the appointment. The reference is to sub-section (1) although appointment is made under sub-section (2); we flag it as printed.
New sub-section (3A): "An auditor appointed under sub-section (2) shall submit the audit of accounts report to the multi-State co-operative society, within six months from the date of closing of the financial year, to which such accounts relate." The six-month period runs from the close of the financial year. It also links to section 43(2)(f): a person is not eligible for election to the board for five years if the board fails to get the audit conducted within six months of the close of the financial year, after a hearing by the Central Registrar. See our note on disqualifications for being a member of the board.
Section 70(4) and (5): re-appointment and default
A retiring auditor "shall be re-appointed" unless (a) he is not qualified, (b) he has given notice of unwillingness, (c) a resolution at the general meeting appoints someone else or says he shall not be re-appointed, or (d) notice of a resolution to appoint someone in his place has been given and, by reason of death, incapacity or disqualification of that person or persons, the resolution cannot proceed. Where no auditor is appointed or re-appointed at an annual general meeting, "the Central Registrar may appoint a person to fill the vacancy" (sub-section (5)).
Section 70(6): first auditor
The first auditor or auditors are appointed by the board "within one month of the date of registration" and hold office until the conclusion of the first annual general meeting. The proviso lets the society in general meeting remove such an auditor and appoint a nominee of any member, on notice to members "not less than fourteen days before the date of the meeting", and lets the general meeting appoint the first auditor if the board fails.
Section 70(7) and (8): vacancy and removal
Sub-section (7)(a): the society may fill any "causal vacancy" (as printed) in the office of an auditor; while it continues, the remaining auditor or auditors may act. As substituted in 2023 the proviso reads: "Provided that where such vacancy is caused by the resignation or death of an auditor, the vacancy shall be filled by the board from the panel of auditors from which such auditor was appointed."
| Matter | Before 2023 | After 2023 |
|---|---|---|
| Vacancy by resignation | Only the society in general meeting could fill it | Filled by the board from the panel from which the auditor was appointed |
| Vacancy by death | Not covered in the proviso | Also covered: filled by the board from that panel |
Sub-section (7)(b): an auditor appointed to a casual vacancy holds office until the conclusion of the next annual general meeting. Sub-section (8): any auditor may be removed before the expiry of his term by the society in general meeting.
Section 70(9): remuneration
The auditor's remuneration (a) if appointed by the board or the Central Registrar, may be fixed by the board or the Central Registrar, and (b) subject to (a), shall be fixed by the society in general meeting or in such manner as the general meeting may determine. An Explanation says any sums paid by the society in respect of the auditors' expenses are deemed included in "remuneration".
Section 70(10): national co-operative societies
New sub-section (10): "The audit report of the accounts of the national co-operative societies shall be laid before each House of Parliament." The Second Schedule lists the national co-operative societies as printed; see our note on the Second and Third Schedules. Which body lays the report before Parliament is not stated in the sub-section.
A practical example
Lakshmi Multi-State Co-operative Society closes its year on 31 March. Its annual general meeting appoints an auditor from the Central Registrar's panel and gives him intimation within seven days. He informs the Central Registrar within thirty days whether he accepts. The audit report must reach the society within six months, that is by 30 September. If the auditor dies in July, the board fills the vacancy from the same panel; before 2023 a death was not covered by the proviso.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.70(2) proviso | One proviso: panel approved by the Central Registrar or prepared by the society, if any | Two provisos: panel approved by the Central Registrar; separate panel for banks and societies above five hundred crore rupees |
| s.70(3A) | Not present | Report within six months of the close of the financial year |
| s.70(7)(a) proviso | Resignation: filled only in general meeting | Resignation or death: filled by the board from the same panel |
| s.70(10) | Not present | Audit report of national co-operative societies laid before each House of Parliament |
Need help with audit appointments?
A society should be able to show how its auditor was appointed, from which panel, and when the report was received. Our legal due diligence team can review the appointment trail, acceptance letters and timelines against section 70 before your next annual general meeting.
Key takeaways
- Accounts must be audited at least once in each year by an auditor appointed at the annual general meeting.
- Since 2023 the auditor is appointed from a panel approved by the Central Registrar, with a separate panel for banks and societies above five hundred crore rupees.
- The audit report is due within six months of the close of the financial year.
- A vacancy by resignation or death is filled by the board from the same panel.
- The audit report of national co-operative societies is laid before each House of Parliament.
Read next
- Concurrent audit, auditor resolutions and qualifications (sections 70A to 72)
- Powers and duties of auditors and audit standards (section 73)
- Annual general meeting of the general body (section 39)
- 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.