SRINAGAR: Jammu and Kashmir has 1,662 non functional cooperative societies, even as over 8,900 cooperatives remain operational in the Union Territory, according to official data tabled in Parliament, underlining structural weaknesses in governance and monitoring despite recent legislative reforms at the national level.
The figures were shared by the Ministry of Cooperation in response to a starred question on strengthening regulatory oversight of cooperative societies. As per the newly launched National Cooperative Database, Jammu and Kashmir currently has 8,913 functional cooperatives, 1,662 non functional societies, and five societies under liquidation, placing the UT among regions where a sizeable portion of the cooperative sector remains inactive or defunct.
The disclosure comes amid a broader push by the Centre to tighten regulation and improve transparency in the cooperative sector through amendments to the Multi State Cooperative Societies Act and the rollout of new digital oversight mechanisms. Nationwide, the database shows that out of 8.45 lakh cooperative societies, only 6.56 lakh are functional, while 1.39 lakh are non functional and 48,537 are under liquidation, highlighting systemic stress across States and Union Territories.
To address governance failures, the government has notified the Multi State Cooperative Societies Amendment Act and Rules, 2023, introducing sweeping changes aimed at preventing financial irregularities and political capture. Key provisions include the creation of a Cooperative Election Authority to ensure timely and transparent elections, appointment of a Cooperative Ombudsman for grievance redressal, mandatory disclosure of non unanimous board decisions, stricter disqualification norms for directors, and enhanced powers for the Central Registrar to probe fraud and order winding up where registration was obtained through misrepresentation.
For Jammu and Kashmir, where cooperatives play a critical role in agriculture, credit, handicrafts and rural livelihoods, the data points to the challenge of reviving dormant institutions rather than merely expanding numbers. The Ministry said the National Cooperative Database, launched in March 2024, has enabled single point access to information on cooperatives and is being used to identify defunct societies for liquidation and replacement with new multi purpose Primary Agricultural Credit Societies, particularly at the gram panchayat level.
The Centre has also set up a Cooperative Rehabilitation, Reconstruction and Development Fund under the amended law to support revival of sick multi state cooperatives and meet their infrastructure needs. Officials said the database is being used to identify gaps in cooperative coverage and guide the formation of two lakh new multipurpose cooperatives across the country.
Alongside regulatory reform, the Ministry highlighted the role of the newly operationalised Tribhuvan Sahkari University, whose curriculum combines management training with digital tools, simulation based learning and real life case studies. The aim, the government said, is to create a new cadre of professionally trained cooperative managers capable of improving efficiency, compliance and financial discipline, including in States and Union Territories with weak institutional capacity.
On audit and compliance, the amended law mandates concurrent audits for large multi state cooperatives with deposits or turnover exceeding Rs 500 crore, online filing of annual returns within six months, and strict disclosure requirements on related party transactions and board level conflicts of interest. Non compliance can now trigger disqualification of directors, a measure intended to curb mismanagement.
