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Frequently asked questions

A co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. It is another means for forming a legal entity to conduct business. It pools together human resources in the spirit of self and mutual help with the object of providing services and support to members.

Cooperatives around the world generally operate according to the same core principles and values, adopted by the International Co-operative Alliance.

They are:

  1. Voluntary and Open Membership
  2. Democratic Member Control
  3. Members' Economic Participation
  4. Autonomy and Independence
  5. Education, Training and Information
  6. Co-operation among Co-operatives
  7. Concern for Community.

A co-operative law consists of two parts, viz., the Co-operative Societies Act and the Co-operative Societies Rules. The Act is enacted by the legislature, whereas Rules are framed by the Government, subject to the provisions of the Act. In Puducherry, it is the Puducherry Co-operative Societies Act, 1972 (No. 7 of 1973) and the Puducherry Co-operative Societies Rules, 1973.

The bye-laws represent the constitution of a society. Each society has its own bye-laws and various subsidiary regulations governing the working of the society, depending on the type of the society.

A co-operative society can be formed for promotion of economic interest of its members in accordance with the co-operative principles. There is no provision to form a co-operative society to promote cultural or social or religious cause.

The primary objective of the Co-operative Department is to see that genuine co-operatives are organized and managed on sound lines as per the basic principles of co-operation for the promotion of the economic interests and welfare of the people and to render guidance and assistance for the development of co-operative movement in the Union territory of Puducherry.

(i) To organise and register various kinds of co-operatives according to the basic principles of co-operation

and as per the provisions of the Puducherry Co-operative Societies Act, 1972 and the Rules framed under;

(ii) To perform the various statutory and quasi judicial functions specified in the above Act and Rules, viz;

(a) Granting State aid to co-operatives, under various schemes launched from time to time;

(b) Supervising and inspecting co-operatives taking actions against erring societies and office-

bearers as per the Act and Rules;

(c) Regulating the working of co-operative societies as per the provisions of the Act and Rules;

(d) Settling disputes relating to the constitution, working and management of the societies;

(e) Executing awards, decrees, orders and decisions;

(f) Winding up of societies, which fail to satisfy the conditions of registration and management;

(g) To depute officers to co-operatives, whenever necessary for their management;

(h) To assist the Government in formulating policies, plans and schemes for the development of the co-operative movement; and

(i) To do all those are necessary for the development of the co-operative movement on sound lines.


  1. Minimum number of persons 25.
  2. The society's object should be for promotion of the economic interests of its members.
  3. The proposed society should be capable of being run on economically sound lines.
  4. The registration of the proposed society should not have an adverse effect on the co-operative
  5. movement.
  6. The prospective members should contribute a minimum amount of share capital for the particular type of society to be started.


Such of those persons, who wish to form a co-operative society, should send an application to the Registrar in plain paper, indicating the type of the society they want to form, number of persons likely to be enrolled as its members, and the name and address of the person authorized to function as chief promoter and to attend to organizational matters. This application should be signed by not less than 25 persons. Based on such application, Registrar will appoint the chief promoter and authorize him to collect the initial share capital. Thereafter, the chief promoter is to collect share capital from the promoters, remit the same in the bank specified by the Registrar and send the application for registration of the society in the form prescribed under the Act, Form No. 1.


One can download the forms from the Department’s website.


To register a new society one may contact the Public Relation Officer of the Department, viz., the Deputy Registrar (Planning) on a mutually convenient date.

If the registration of a society is found uneconomical, the Registrar can refuse to register the society. In such a case he shall pass an order together with reasons for refusal to any person who has signed the application for registration. The aggrieved person has a right to appeal.

When the name of the society is to be changed, it amounts to amendment of the bye-laws. A change in the name of the society may be necessary in view of variation in the type of activities of the society or extension of activities to other places. A society which seeks to change its name may do so (i) by passing a resolution at a general body meeting; and (ii) with the approval of the Registrar.

Any person, who qualifies for membership, as provided in the respective bye-laws of the society, may seek membership by applying in the form prescribed to the society. If found qualified, the committee will admit him as a member. For good and sufficient reasons, his membership can be refused by the committee. If the membership is refused, the committee shall communicate reasons for refusal to the applicant.

A person who is aggrieved on the refusal of membership has the right to appeal to the Registrar within one month from the date of receipt of the decision. The Registrar shall dispute of any appeal within one month from the date of its receipt. The decision of the Registrar shall be final and binding both on the applicant and the society.

Every member shall be entitled to the services available to the member of the society under the provisions of the bye-laws. Such services shall be rendered to him on application to the committee. If any member is refused of any service or where the decision of the committee on his application for services is not communicated to him, the aggrieved member has a right to make an application to the Registrar for redress.

The management of a society shall vest in a committee constituted in accordance with the Act, the Rules and the bye-laws. Committee has to be constituted by the general body. The committee shall consist of not less than 7 and not more than 15 members in respect of a primary society. In case of a central or an apex society the minimum strength of the committee shall be 9 while the maximum be 21 members. There is a provision for reservation for scheduled caste member in the committee of primary societies. In addition, reservation of not less than two women member is provided in respect of urban bank or a consumer store or a milk supply society or a milk supply union.

It is the responsibility of the outgoing committee to conduct election to install a new committee, before expiry of its term. To conduct election the committee may seek the services of the election officer, to be appointed by the Registrar. The details procedures are spelt out in the Rules.

An aggrieved member may file a dispute relating to or in connection with any election of officer before the Registrar within two months from the date of declaration of result of such election. However, a dispute relating or in connection with any election to a committee shall not be referred till the date of the declaration of the result of such election.

Under plan schemes of the Government of Puducherry and schemes of the Government of India financial assistance is extended to the societies. There is no provision to extend any financial assistance to the member of the society directly. The various schemes for financial assistance may be found in the citizen charter. The assistance is subject to availability of funds earmarked from time to time.

The services provided by the Co-operative Department at the request of societies/members are provided in the Citizen Charter. The time limit is only directory.

You are welcome to visit the Department’s website in general and to the Citizen Charter in particular for more information.

Back To Previous Page | Page last updated date: 09-07-2024

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