Sections 70A to 72 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.
This group covers three things. Section 70A, inserted in 2023, requires concurrent audit by a panel auditor for societies above a turnover or deposit level that the Central Government determines. Section 71 protects a retiring auditor by requiring special notice of a resolution to replace him. Section 72 says who is qualified or disqualified to be an auditor. Sections 71 and 72 were not amended in 2023. This article states them as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
Under section 70A, a society having an annual turnover or deposit of more than the amount determined by the Central Government must have a concurrent audit by an auditor from a panel approved by the Central Registrar. Under section 71, a resolution to appoint someone other than the retiring auditor, or to say he shall not be re-appointed, needs special notice, and the retiring auditor can make written representations. Under section 72, only a chartered accountant is qualified, and a body corporate, an officer or employee of the society and some indebted persons are not.
Section 70A: concurrent audit (inserted 2023)
The 2023 Amendment Act (Act 11 of 2023, in force from 3 August 2023 by notification S.O. 3493(E)) inserts section 70A, headed "Concurrent Audit". It reads: "In case of multi-State co-operative societies,—(i) having an annual turnover more than the amount as determined by the Central Government; or (ii) having deposit of more than the amount as determined by the Central Government, the concurrent audit shall be carried out by an auditor appointed from a panel of auditors approved by the Central Registrar."
| Element | Text |
|---|---|
| Trigger (i) | Annual turnover more than the amount determined by the Central Government |
| Trigger (ii) | Deposit of more than the amount determined by the Central Government |
| Who audits | An auditor appointed from a panel approved by the Central Registrar |
| Effect | "the concurrent audit shall be carried out" |
The triggers are alternatives ("or"). The Act gives no amount for either, and the sources contain no determination; we give none and assert nothing about whether any determination has been made. The Act also does not define "concurrent audit" or say how often it is done, how it relates to the annual audit under section 70, or who appoints the auditor from the panel. We say only what the text says. If you are checking whether a society falls within section 70A, our legal due diligence team can help.
The panel in section 70A is the panel approved by the Central Registrar, as in section 70(2); see our note on appointment and remuneration of auditors.
Section 71: resolutions appointing or removing auditors
Special notice
Sub-section (1): "A special notice shall be required for a resolution at an annual general meeting appointing as auditor a person other than a retiring auditor, or providing expressly that a retiring auditor shall not be re-appointed." The Act does not say in this section how special notice is given or its period.
Copy to the retiring auditor
Sub-section (2): "On receipt of notice of such a resolution, the multi-state cooperative society shall forthwith send a copy thereof to the retiring auditor."
Representations
Sub-section (3): if the retiring auditor makes written representations "(not exceeding a reasonable length)" and asks that they be notified to members, the society must, unless they arrive too late:
- (a) in any notice of the resolution given to members, state that representations have been made; and
- (b) send a copy to every member to whom notice of the meeting is sent, before or after receipt.
If a copy is not sent because the representations were received too late or because of the society's default, "the auditor may (without prejudice to his right to be heard orally) require that the representations shall be read out at the meeting." The retiring auditor therefore has both a written route and an oral route. See also section 76, which gives the auditor the right to attend general meetings and be heard; it is covered in our note on audit report, signature, reading and auditor at meeting.
Section 72: qualifications and disqualifications
Sub-section (1): chartered accountant
"A person shall not be qualified for appointment as an auditor of a multi-state cooperative society unless he is a chartered accountant within the meaning of the Chartered Accountants Act 1949 (38 of 1949)." Check the current law for the corresponding provision of that Act.
Sub-section (2): who is not qualified
| Clause | Person |
|---|---|
| (a) | a body corporate |
| (b) | an officer or employee of the multi-State co-operative society |
| (c) | a person who is a member, or who is in the employment, of an officer or employee or the multi-State co-operative society (as printed) |
| (d) | a person who is indebted to the society or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the society for an amount exceeding one thousand rupees |
Clause (c) is printed "of an officer or employee or the multi-state cooperative society", which reads as a slip; we quote it and do not correct it. Clause (d) sets the limit at "one thousand rupees". The clause does not say whether the amount is per person or in total.
Sub-sections (3) and (4): knock-on disqualification
Sub-section (3): a person "shall also not be qualified" if, by virtue of sub-section (2), he is disqualified for appointment as an auditor "of any other body corporate or multi-state cooperative society or cooperative society". Sub-section (4): if an auditor becomes subject, after appointment, to any disqualification in sub-sections (2) and (3), "he shall be deemed to have vacated his office". The vacancy then arises without any order; the filling of a casual vacancy is under section 70(7).
An apparent gap
Section 70(2), as amended in 2023, speaks of "auditors or auditing firm", while section 72(2)(a) says a body corporate is not qualified and section 72(1) requires a chartered accountant. The text does not say whether a firm of chartered accountants is an "auditing firm" for this purpose or a body corporate for section 72(2)(a). We state both as printed and do not reconcile them.
A practical example
Hari Multi-State Co-operative Society's turnover is above the amount that the Central Government has determined (assume such a figure exists). Section 70A requires a concurrent audit by an auditor appointed from the Central Registrar's panel. At the annual general meeting a member proposes to appoint a different chartered accountant in place of the retiring auditor. Special notice is required; the society sends a copy to the retiring auditor, who writes representations, and the society tells members and sends them the representations. A proposed new auditor who owes the society a loan of five thousand rupees is not qualified under section 72(2)(d), because the debt exceeds one thousand rupees.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| s.70A | Not present | Inserted: concurrent audit by a panel auditor above the turnover or deposit amount determined by the Central Government |
| ss.71, 72 | As printed above | Unchanged |
Need help with audit compliance?
A society should know whether section 70A applies, who its panel auditor is, and whether anyone proposed as auditor is qualified under section 72. Our legal due diligence team can check the position before the board proposes an appointment.
Key takeaways
- Section 70A requires concurrent audit by a panel auditor when turnover or deposit exceeds the amount determined by the Central Government; the Act gives no figure.
- A resolution to replace a retiring auditor needs special notice, and the auditor can make written representations or be heard.
- Only a chartered accountant is qualified; a body corporate and an officer or employee of the society are not.
- A person indebted to the society for more than one thousand rupees, or who has given a guarantee or security for more than that for a third person, is disqualified.
- An auditor who becomes disqualified after appointment is deemed to have vacated office.
Read next
- Appointment and remuneration of auditors (section 70)
- Powers and duties of auditors and audit standards (section 73)
- Audit report, signature, reading and auditor at meeting (sections 74 to 76)
- 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.