As many as 1.41 lakh cooperative societies out of the 8.53 lakh registered across India are currently non-functional, while another 49,177 societies are under liquidation, according to data placed before the Lok Sabha. The figures also reveal that 6.63 lakh cooperative societies are currently functional — but audit coverage varies quite sharply from state to state.
The National Picture
The data, maintained on the National Cooperative Database as of July 15, 2026, was shared by Union Home Minister and Minister of Cooperation Amit Shah in a written reply to the Lok Sabha. Of the 6.63 lakh functional societies nationwide, 5.95 lakh have been audited, while around 68,020 remain unaudited — a gap that raises real questions about financial oversight across the cooperative sector.
Maharashtra Leads the Way, But Gaps Persist Elsewhere
Maharashtra has the country's largest cooperative network by far, with 2,19,775 functional societies, of which 2,11,329 have been audited and 8,446 remain unaudited. Gujarat follows with 79,823 functional societies, including 73,340 audited and 6,483 unaudited. Telangana has 46,672 functional societies, with 43,478 audited, while Karnataka has 40,440 functional societies and 37,732 audited.
Rajasthan reports 27,172 functional societies with 23,497 audited, and Madhya Pradesh has 27,041 functional societies, including 25,479 audited. Uttar Pradesh has 22,888 functional societies, of which 15,528 have been audited and 7,360 remain unaudited — a notable gap. West Bengal shows a similar pattern, with 23,028 functional societies, including 16,977 audited and 6,051 unaudited. Bihar has 22,243 functional societies with 19,896 audited, Tamil Nadu reports 21,090 functional societies with 19,384 audited, Haryana has 15,447 functional societies including 13,228 audited, and Kerala has 15,106 functional societies with 14,624 audited.
Some states show particularly large audit gaps that stand out. Jammu and Kashmir has 5,138 unaudited societies out of 9,132 functional ones, Odisha has 3,198 unaudited out of 8,063, and Assam has 2,957 unaudited against 8,071 functional societies. These figures highlight just how uneven the reach of consistent, thorough auditing services in India has been across the cooperative sector — with tens of thousands of functional societies still operating without a completed audit, leaving genuine gaps in financial transparency and accountability at the grassroots level.
115 Multi-State Cooperative Societies Under Liquidation
According to the government, details of cooperative societies lying dormant due to financial irregularities, weak management, or a lack of timely audits are maintained by the respective State and Union Territory governments.
Multi-State Cooperative Societies operate as autonomous organisations under the Multi-State Cooperative Societies Act, 2002, and remain accountable to their members. Where irregularities — including financial embezzlement — are detected, winding-up proceedings can be initiated under Section 86 of the Act, with a liquidator appointed under Section 89 to liquidate the society's assets and facilitate payments to investors and members under Section 90.
So far, 115 Multi-State Cooperative Societies have been placed under liquidation nationwide. Rajasthan tops this list with 26, followed by Maharashtra with 23, Delhi with 16, Uttar Pradesh with 14, and Odisha with 12. West Bengal has six such societies, Gujarat has four, and Tamil Nadu has three. Andhra Pradesh and Telangana each have two, while Bihar, Chandigarh, Goa, Jharkhand, Karnataka, Punjab, and Dadra and Nagar Haveli and Daman and Diu each have one.
Government Push for Governance Reforms
The Ministry of Cooperation, established on July 6, 2021, has rolled out several measures aimed at improving transparency, accountability, and protection of members' interests, under the broader vision of "Sahakar se Samriddhi."
The Multi-State Cooperative Societies Act was amended in 2023 to strengthen governance, transparency, accountability, and the electoral process within these societies. The amendment also created a Cooperative Rehabilitation, Reconstruction and Development Fund, specifically designed to support the revival of sick Multi-State Cooperative Societies and their infrastructure needs. The government has also circulated Model Bye-laws for Primary Agricultural Credit Societies, allowing them to diversify into activities like storage, processing, LPG distribution, and Common Service Centres, while simultaneously strengthening governance and member-focused operations.
On the technology front, a PACS computerisation programme is bringing functional societies onto a common ERP-based national software platform, aimed at improving transparency, efficiency, record management, and service delivery. Capacity-building programmes are also being run for cooperative members, boards of directors, employees, state officials, and aspiring youth through a network of 20 training institutes.
The National Cooperative Database currently covers 8.53 lakh cooperative societies and around 32 crore members nationwide, and Rural Cooperative Banks have also been brought under the RBI Integrated Ombudsman Scheme as part of broader efforts to strengthen transparency and accountability across the cooperative sector.
FAQs
Q1. How many cooperative societies in India remain unaudited?
Out of 6.63 lakh functional cooperative societies, approximately 68,020 remain unaudited, according to data shared in the Lok Sabha.
Q2. Which state has the largest number of cooperative societies?
Maharashtra leads with 2,19,775 functional cooperative societies, the largest in the country, of which 2,11,329 have been audited.
Q3. How many Multi-State Cooperative Societies have been placed under liquidation?
So far, 115 Multi-State Cooperative Societies have been placed under liquidation, with Rajasthan accounting for the highest number at 26.