GOVERNMENT OF KERALA

Co-operation (B) Department

NOTIFICATION

G.O.(P)No.232/2024/Co-op. Dated, Thiruvananthapuram, 31^st December, 2024.

16^th Dhanu, 1200.

In exercise of the powers conferred by section 109 of the Kerala Co-

operative Societies Act, 1969 (21 of 1969), the Government of Kerala hereby make the

following rules further to amend the Kerala Co-operative Societies Rules, 1969, the

same having been previously published under Notifications

No.

Co-op-

േകരള സർകാർ

Government of Kerala

2024

േകരള ഗസറ്

KERALA GAZETTE

അസാധാരണം

EXTRAORDINARY

ആധികാരികമായി ്പസിദെപടുതുനത

PUBLISHED BY AUTHORITY

Regn.No. KERBIL/2012/45073

dated 05-09-2012 with RNI

Reg No.KL/TV(N)/634/2021-2023

വാല്ം 13

Vol. XIII

തിരുവനനപുരം,

െചാവ

Thiruvananthapuram,

Tuesday

2024 ഡിസംബർ 31

31st December 2024

1200 ധനു 16

16th Dhanu 1200

1946 െപൗഷം 10

10th Pousha 1946

നമർ

No.

4134

S. R. O. No. 1203/2024

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B1/459/2019/Co-op dated 06^th April, 2022 in the Kerala Gazette Extra Ordinary

No.1226 dated 13^th April, 2022 and No. Co-op-B1/258/2019/Co-op dated 27^th July,

2024 in the Kerala Gazette Extra Ordinary No.2430 dated 28^th July, 2024 as required

by sub-section (1) of Section 109 of the said Act, namely:-

RULES

1. Short title and commencement.- (1) These rules may be called the Kerala Co-

operative Societies ( second Amendment) Rules, 2024.

(2) They shall come into force at once.

2. Amendment to the Rules.- In the Kerala Co-operative Societies Rules,1969,-

(1) in rule 2,-

(a) after clause (a), the following clause shall be inserted, namely:-

“(ai) “Audit Team” means a team of auditors appointed by the Director of

Co-operative Audit as stipulated under sub-section (9) of section 63 of the Act.” ;

(b) after clause (aa), the following clause shall be inserted, namely:-

“(ab) “Co-operative Revival Fund Scheme” means the Co-operative

Revival Fund Scheme constituted under section 57E of the Act.”;

“(h) “Person” includes the Government, the Local Self Government

Institutions and the Co-operative Societies registered under this Act.”.

(2) in rule 3,-

(a) clause (b) of sub-rule (1) shall be omitted;

(b) in sub-rule (6),-

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(i) for the entries against item (i) in column (2), for the words "Two

thousand" the words "Two Thousand Five hundred" shall be substituted;

(ii) for the entries against item (ii) in column (2), for the words "Four

thousand" the words "Five Thousand" shall be substituted;

(iii) for the entries against item (iii) in column (2), for the words "Five

thousand" the words "Six Thousand Two Hundred and Fifty" shall be substituted;

(iv) for the entries against item (iv) in column (2), for the words "Ten

thousand" the words "Twelve Thousand Five Hundred" shall be substituted;

“(7) Every application for the registration of a co-operative society shall be

submitted and processed through online or on physical mode.”.

(3) in rule 4,-

(a) in clause (ii), for the words, brackets, letters and symbol “in clauses (a) to

(e),” the words, brackets, letters and symbol “in clauses (a) to (f),” shall be

substituted;

(b) in clause (iv), after the words “ the above requirements” the symbol and

words “, he may request the chief promoter to submit a certificate from the financing

bank stating the credit balance by way of depositing the initial share capital collected

from the promoting members in favour of the proposed society as per section 7 and”

shall be inserted;

substituted;

(d) after clause (vii), the following clause shall be added, namely:-

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“(viii) In societies where online system has been implemented, the submission

of application for registration and the remittance of fee and all other transactions

relating to it shall be processed through such online system.”.

(4) after rule 4A, the following rule shall be added, namely:-

“4B Manner of issuing Certificate in the event of change of name of Society.

– In the event of change of name of a society, the certificate to be issued by the

Registrar under sub-section (2) of section 10 shall be in Form No. 3B of Appendix II

to this Rules.”.

(5) After clause (vii) of sub-rule (2) of rule 5, the following clause shall be added,

namely:-

“ (viii) income and liability of borrower and his repaying capacity.”.

(6) in rule 9,-

(a) For clause (ii) the following clause shall be substituted, namely:-

“(ii) No such resolution shall be valid in the case of a society having not

more than one thousand members, unless intimation of the amendment proposed has

been given to the members of the society in person and their full signature in token of

having received the same has been obtained or by registered post or speed post or

such courier services approved by the High Court of Kerala or the Government of

Kerala and in other cases, it shall be sufficient if the date, time, place and agenda of

such General Body Meeting are published in two vernacular dailies having wide

circulation within the area of operation of the society, and the date, time, place and

agenda of such General Body Meeting with details of amendment proposed in the

notice board of the society at the head office and branches of the society, in the

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branches of the Kerala State Co-operative Bank within the area of operation of the

society, in the Panchayat office or the Municipal office or the Regional Office or the

Head Quarter of the Municipal Corporation or Village Office, as the case may be, and

also in the notice board of the offices of the Assistant Registrar (General) and the

village, block, taluk level office of the Functional Registrars concerned to whom the

supervision is vested and the office of the Assistant Director (Audit) and the office of

the Circle Co-operative Union, within which the area of operation of the society falls

and the society may also inform the date of meeting by Short Message Service of

cellular phones or other computer devices or e-mails or local television channels or

by exhibiting banners in prominent places within the area of operation of the

society.”;

(b) in sub-clause (c) of clause (iv), for the words "five hundred" the words

"one thousand" shall be substituted.

(7) in rule 13,-

(a) in the marginal heading after the word and symbol “Amalgamation,” the

word and symbol “ Merger,” shall be inserted;

(b) in sub-rule (1),

(i) after the word and symbol “amalgamation,” the word and symbol

“merger,” shall be inserted;

(ii) after the words and symbol “for amalgamation,” the word and symbol

“merger,” shall be inserted;

(iii) for the words “two third majority” the words “simple majority” shall

be substituted;

(iv) in the proviso, after the word “amalgamation,” the symbol and word

“merger,” shall be inserted;

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“(2A) Every Co-operative Society which intend to merge with another

society shall prepare a scheme of merger and submit the same and pass such a

resolution with simple majority at the General Body Meeting, of each such

merging society, convened for the purpose of such merger of the societies. The

scheme shall contain the details of each merging societies as well as the other

details such as objectives, functions, area of operation, structure and detailed

scheme of transfer of assets and liabilities of the merged society.”;

(d) in sub-rule (3), after the word “amalgamated” the symbol and word “,

merged” shall be inserted,

(8) after rule 13, the following rules shall be added, namely:-

“13A. Promotion of Subsidiary Institutions for the Economic Welfare of

Members.- (1) More than half in nominal value of equity shares of the subsidiary

institution shall be held by the promoting society and it shall be maintained

throughout the existence of such subsidiary institution.

(2) The subsidiary institution shall convene Annual General Body meeting

as per the provisions by which it is registered and the annual reports and audit report

shall be placed before the General Body Meeting of the promoting society in each

year, along with the audit findings of the auditors of the Co-operative Department

conducted in the subsidiary institutions as per sub-section (2C) of Section 14AA of

the Act.

(3) Any financial assistance to the subsidiary institution by way of share

capital contribution or financial assistance by the promoting society shall be met from

the balance net profit of the society as provided under sub-section (2) of Section 56

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of the Act. A promoting society may grant further financial assistance to the

subsidiary institution only by way of loans with the prior approval from the Registrar

and the terms and conditions which include rate of interest and tenure of loan fixed by

the Registrar. No promoting society shall contribute more than ten percent of its

working capital as loan to the subsidiary institution.

(4) The Government may appoint its nominees in the Board of Directors or

in the Governing Body of the subsidiary institutions, formed by a co-operative

society or a Bank which had availed any financial assistance or any portion of the

financial assistance from Government or where Government stood as guarantor for

such societies or Banks.

(5) The Registrar shall conduct periodical inspection and verification of

records and accounts in the subsidiary institutions and give necessary instruction for

the proper working of the subsidiary institutions, if necessary. The auditor or team of

auditors of the promoting society shall audit the accounts of the subsidiary

institutions to the extent of the financial assistance granted to such subsidiary

institution by the promoting society. The audit findings by the auditor or team of

auditors shall be submitted to the promoting society as enclosure along with the

statutory audit report of the promoting society and the same shall be submitted before

the General Body Meeting of the promoting society.

(6) The Director of Co-operative Audit shall, in consultation with Registrar,

prepare scheme of audit and audit proforma for the auditing of subsidiary institutions.

(7) A co-operative society, based on a resolution passed with simple majority

at the General Body Meeting, may wind up a subsidiary institution formed under

Section 14 AA of the Act.

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13B. Partnership of Co-operative Societies.- (1) The Registrar shall verify the

feasibility and practicability of the detailed project report and application submitted

by the societies for the approval of the Partnership.

(2) The annual accounts of partnership of societies shall be audited by a team

of auditors appointed by the Director of Co-operative Audit. The audit team shall be

constituted from among the team of auditors appointed for the audit of each societies

of the partnership. The inspection and verification of records of the partnership shall

be conducted by the inspection team constituted under sub-section (2A) of section 66

of the Act, at least once in a year or, as and when required, as per the direction of the

Registrar.

(3) Funds required for the formation and functioning of partnership shall be

mobilized from the partner societies without affecting the financial stability of the

societies. The partnership shall submit the application for raising of funds in

accordance with project report and shall submit the same to the Registrar and the

Registrar may, in turn, forward such application to the Government with his

suggestions and recommendations after considering the detailed project report and

financial position of each partner societies.”.

(9) in rule 15 ,-

(a) under the heading ‘Type’, under the sub-heading “A. Short Term/Medium

Term”,-

(i) item 2 and the entries against it shall be omitted;

(ii) in the entries against item “3. Primary”, the bracket and letter “(a)” shall

be omitted;

(b) under the sub-heading “ 5 Producers Society”, in the entries against “(2).

Central”,-

(i) the words and symbol “ Central Coir Marketing Society,” shall be

omitted;

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(ii) for the words “Regional Milk Producers Union” the words “Regional Co-

operative Milk Producers’ Unions.” shall be substituted;

“(iii) Producers’ cum Consumers Societies” against item “3. Others”, the following

entries shall be added, namely:-

“ (iv) Social Co-operative Societies

(v) Youth Co-operative Societies”;

(d) for sub-heading “13. Multipurpose Co-operative Societies”, the following

sub-heading and the entry shall be substituted, namely:-

“ 13. Multipurpose Co-operative Societies

“Primary

Multipurpose Co-operative Societies undertaking

multi functional activities.”.

(10) in rule 16,-

(a) after clause (a) of sub-rule (2), the following clause shall be added,

namely:-

“(aa) in the case of youth co-operative societies has attained the age of

forty-five years;”;

(b) after sub-rule (4), the following sub-rule shall be added, namely:-

“(5) The enrollment of members made by the Administrator or the

Administrative Committee, appointed by the Registrar as per Sections 32 or 33

of the Act, as the case may be, may either ratify or deny any such membership

and in the event of not ratifying such membership by the elected committee it

shall specify the reason thereof and inform the applicant accordingly. The elected

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committee has to take a decision within a period of one year from the date of

assuming charge by the elected committee.”.

(11) in rule 16E, after sub-rule (1), the following sub-rule shall be added,

namely:-

“(1A) In the case of Anand Pattern Milk Co-operative Societies having a

regular elected managing committee and doing the business of milk procurement and

sales within the area of operation of the Regional Co-operative Milk Producers’

Union, shall apply for affiliation to their respective Central or Apex Societies in Form

no.31of Appendix II of these rules and shall be send by registered post with

acknowledgment due.”.

(12) after rule 16E, the following rule shall be added, namely:-

“16F. Eligibility conditions to continue to be an active member of the

committee of a Primary Anand Pattern Milk Co-operative Society.- Only an active

member having the qualifications specified in sub-section (1) of section 16B of the

Act shall be eligible to become a member of the committee of an Anand Pattern Milk

Co-operative Society and to continue as a member of such committee.”.

(13) in rule 25,-

(a) for sub-rule (1), the following sub-rule shall be substituted, namely:-

“(1) Any member of a registered society may, at any time during office

hours either by himself or by an agent who is a member specifically authorised by

him in writing, inspect accounts of the society in so far as they relate to his

transactions, the summary of defects included in the latest statutory audit report along

with the rectification report approved by the Committee and the General Body of the

society.”;

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(b) after sub-rule (1), the following sub-rule shall be added,

namely:-

“(1A) A Member shall be entitled to get a true copy of the documents

mentioned in sub-rule (1) on submission of application and on payment of a fee of

rupees three per each page of the documents.”.

(14) in rule 29,-

(a) in sub-rule (1), after the words “books and registers” the symbols and

words “, either in physical or in digital form,” shall be inserted;

(b) after sub-rule (1), the following sub-rule shall be inserted, namely:-

“(1A) All co-operative societies shall prepare and keep the books of

accounts and financial statements in the manner and Forms included in the Audit

Manual prepared by Registrar and approved by the Government from time to time.”;

(i) after the words “accounts and books” the symbol and words “, either

in physical or in digital form” shall be inserted;

(ii) in clause (a), after the word “ members” the words “shall be prepared

manually and thereafter keep them by means of digital forms” shall be inserted;

(iii) in clause (m), after the words “Rectification Register” the words “shall

be prepared manually and thereafter keep them by means of digital forms” shall be

inserted;

(d) after sub-rule (2), the following sub-rule shall be added, namely:-

“(3) There shall be a common software adopted by the

Government for Primary Agricultural Credit Societies. Every Primary Agricultural

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Credit Society shall keep and maintain their accounts by using such common

software. In the case of societies other than Primary Agricultural Credit

Societies, their accounts shall be prepared only by using a software approved by the

Registrar. The Registrar shall issue necessary guidelines for installation,

maintenance and use of common software to all co-operative societies. The

guidelines shall also include details such as migration of legacy data, training of

employees, implementation time-line and sharing the cost for the expenses of such

common software. In the case of societies for whom the Registrar has given

approval for the use of a software other than common software, the Registrar shall

issue necessary guidelines for migration of legacy data, training of employees and

implementation time-line in different categories of societies.”.

(15) after rule 29, the following rule shall be added, namely:-

“29A. Procedure for maintaining and recording the minutes of the meeting of

the Board of Directors, Sub-Committees and of the General Body Meeting.- (1) The

Minutes Book of all meetings shall be kept under the safe custody of the Chief

Executive of the respective co-operative society and shall be made available for

inspection by the President and other Directors at all reasonable times.

(2) The minutes of the meeting shall be recorded by the President or any

member of the Committee or the Chief Executive of the Society.

(3) Blank space in the Minutes Book shall be scored out and all corrections,

overwriting, erasures etc., should be clearly noted at the end before the minutes are

signed by the President and other members of the Board.

(4) The minutes of the meeting shall be signed by the President and all other

members of the Board who were present at the meeting and the proceedings of the

previous meeting shall be read out and recorded in the subsequent meeting.

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(5) The minutes book of Board Meeting, Sub-Committee Meeting as well as

General Body Meeting shall be made available for inspection or audit as and when

required by the authorized officers.”.

(16) in rule 33,-

(a) in sub-rule (1),-

(i) after clause (b), the following clauses shall be added, namely:-

“(ba) rectification reports approved by the committee on summary of

defects in the audit report and the approval of General Body of the society on steps to

be taken for the rectification of such defects;

(bb) quarterly returns on the credit activities duly certified by the Chief

Executive of the co-operative society;”;

(ii) in clause (e), the word “and”, occurring at the end, shall be omitted;

(iii) after clause (e), the following clause shall be added, namely:-

“(ea) detailed list of all liabilities of the members of the committee and

their family members, the employees of the society and their family members, due to

the society for the previous financial year; and”;

(b) after sub-rule (3), the following sub-rule shall be added, namely:-

“ (3A) In case of failure by any society to submit quarterly returns on the

credit activities duly certified by the Chief Executive of the co-operative societies, as

specified in sub-section (2) of Section 66C of the Act, such society shall be liable to

pay fine as specified in the table below, namely:-

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Sl.No.

Type of Society

Amount of Fine

(in Rupees)

(1)

(2)

(3)

Societies coming under the classification class I according

to the financial position as per Appendix III of this Rules

Rs.10,000/-

Societies coming under the classification class II and III

according to the financial position as per Appendix III of

this Rules

Rs.8,000/-

Societies coming under the classification class IV and V

according to the financial position as per Appendix III of

this Rules

Rs.6,000/-

All other societies coming under the classification

according to the financial position as per Appendix III of

this Rules

Rs.5,000/-

(17) in rule 35A,-

(a) in sub-rule (3A),-

(i) for the words “less than five hundred” the words “ not more than one

thousand” shall be substituted;

(ii) for the words “final voters list” the words” “preliminary voters list” shall

be substituted;

(b) in sub-rule (3B), for the words “final voters list” the words” “preliminary

voters list” shall be substituted.

(18) in rule 35B,-

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(a) for sub-rule (1), the following sub-rule shall be substituted, namely:-

“(1) The State Chief Co-operative Election Commissioner shall be the

Special Secretary to Government in Law Department. The other two Commissioners

shall be appointed by the Government, as per sub-section (2) of section 28B of the

Act.”

(19) after rule 35C, the following rule shall be added, namely:-

“35CA. Manner of election of members to the Kerala State Co-operative

Bank and the classification of each members.- The Board of Directors of the Kerala

State Co-operative Bank shall consist of not more than twenty one members, of

which fifteen members shall be elected by Class ‘A’ members of the

Kerala State Co-operative Bank. The classification of members of the Board of

Directors is as follows, namely:-

(i) fourteen members, one from each district representing the Primary

Agricultural Credit Societies, elected by the ‘A’ Class members of the Kerala State

Co-operative Bank from among the delegates of Primary Agricultural Credit

Societies, and shall be categorized as follows, namely :-

(a) General – 10 members;

(b) Women – 3 members;

Provided that two seats in the Board of Directors shall be reserved for members

whose age shall not exceed fourty years, of whom one shall be from the general

category and one shall be a woman from the women reservation category.

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Explanation - The District from which women members, SC/ST members and

members not exceeding the age of fourty years are to be elected shall be decided by

the Registrar of Co-operative Societies by way of taking lots. In each subsequent

term of a committee, the districts once represented in each category shall be

excluded from the lot till all the districts have been represented.

(ii) one member representing the Urban Co-operative Banks in the State,

elected from among the delegated board members of the Urban Co-operative Banks

by ‘A’ Class members of the Kerala State Co-operative Bank.

(iii) two independent professional Directors nominated by the Government.

(iv) four ex-officio members, namely :-

(a) Secretary, Government, Co-operation Department;

(b) Registrar of Co-operative Societies;

(d) Chief General Manager, NABARD, Regional Office, Kerala.”.

(20) rule 35D shall be omitted.

(21) in sub-rule (1) of rule 35E,-

(a) after the words “Co-operative Society” the words “or Co- operative

Union” shall be inserted;

(b) items (1) to (4) and the entries against it shall be substituted as follows,

namely :-

Sl. No.

Type of Society

Election Fee in Rupees

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(1)

(2)

(3)

Apex Society or State Co-operative

Union

Seven Thousand Five Hundred

Central and Federal Society

Four Thousand and Five Hundred

Credit Societies and Housing

Societies

Three Thousand

Other Societies or Circle Co-operative

Unions

One Thousand Five Hundred

(22) after rule 37, the following rule shall be added, namely:-

“37A. Qualification and appointment of co-opted members.- (1)

Notwithstanding anything contained in the bye-laws of a society, the Committee in

office shall co-opt two persons or representatives who are or were in paid service of a

Commercial Bank, Kerala State Co-operative Bank, an Urban Co-operative Bank,

Kerala State Co-operative Agricultural and Rural Development Bank, a Primary Co-

operative Agricultural and Rural Development Bank, erstwhile District Co-operative

Banks or a Service Co-operative Bank in the managerial cadre shall have ten years

minimum service in their respective field and shall have acquired graduation from a

University recognized by the University Grants Commission.

(2) The following are the minimum educational qualifications for co-opt

persons or representatives,-

Sl.No.

Field

Educational Qualifications

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Co-operation/Co-operative

Management

MBA (Finance or Banking) OR M.Com

OR B.Com (co-operation) OR Higher

Diploma in Co-operation and

Business Management OR B.Sc. (Co-

operation & Banking) OR any other

equivalent qualification.

Management

MBA OR any other equivalent

qualification.

Agriculture

B.Sc. Agriculture OR any other

equivalent qualification.

Economics

Master’s Degree in Economics OR any

other equivalent qualification.

Commence

M.Com (Finance or Co-operation) OR

B.Com (co-operation) OR Higher

Diploma in Co-operation and

Business Management OR B.Sc. (Co-

operation & Banking) OR any other

equivalent qualification.

Public Finance

MBA (Finance) OR any other

equivalent qualification.

Law

LLB

Rural Development

Master’s Degree in Rural Development

OR any other equivalent qualification.

Information Technology

MCA OR any other equivalent

qualification.

(3) The co-opted members shall not have any disqualification under the Kerala

Co-operative Societies Act, 1969;

(4) The appointment of the co-opted members or representatives shall be done

only with the prior approval of the Registrar. The society shall submit an application

along with the resolution of the Board of Directors of the society for the appointment

of such co-opted members and with their experience and qualifications. The Registrar

shall consider the application and may issue permission for the appointment of such

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co-opted members or denay the application with proper reasons, if any, within one

month from the date or receipt of the application.

(5) The Registrar shall issue notice to the Board of Directors of the society,

directing to co-opt members or representatives in the committee, which fails to co-opt

the Persons or representatives in accordance with sub-section (1G) of section 28 of

the Act. If the Board of Directors are not responding to the directions of the Registrar

within one month from the date of receipt of a notice in this behalf, the Registrar shall

nominate persons or representatives as mentioned in sub-section (1G) of section 28 of

the Act.”.

(23) in rule 38,-

(a) in sub-rule (5), after the words “same class of members” the words “and

such nomination shall be verified by the Registrar and shall intimate the State Co-

operative Election Commission in writing within thirty days of such nomination”

shall be inserted;

(b) after sub-rule (6), the following sub-rule shall be added, namely:-

“(7) The society shall maintain a register of such co-opted

members by incorporating details such name, address and their

qualifications.”.

(24) in rule 43,-

(a) after sub-rule (1), the following sub-rule shall be added, namely:-

“(1A) Either the President or the Vice-President of a Primary Anand

Pattern Milk Co-operative Society shall be a woman.”.

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(b) in sub-rule (2), for the figures “15” the word “thirty” shall be

substituted;

(25) after rule 43A, the following rule shall be added, namely:-

“43B. Handing over charge in the absence of President/ Vice-

President.- When the President of a society is on leave or in absent for more than

fifteen days continuously and his charge is not handed over to the Vice-President, it

shall be deemed to have been handed over to the Vice-President. When both

President and Vice-President are absent for more than fifteen days continuously the

said charge shall be handed over to any other member of the Director Board, decided

by a resolution passed in the meeting, for avoiding any interruption in the

day-to-day functioning of the society.”.

(26) in rule 44,

(a) in sub-rule(1),- (i) in clause (k), for the words “of one year has not elapsed

from the date of supersession” the words “of next one term has not elapsed from the

date of order of such supersession as provided in clause (e) of sub-section (1) of

section 32 of the Act” shall be substituted;

(b) after sub-rule (1), the following sub-rule shall be added, namely :-

“(1A) No member of the Primary Credit society or an Urban Bank shall be

eligible for being elected as, or for being and remain as a member of the managing

committee representing the seat reserved for the members having a deposit of

Rs.25,000 and above, as per section 28(1C) of the Act, unless, the said deposit is

maintained in the society till the end of the term of the committee;

Daughter-in-law” the following shall be inserted, namely:-

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“14. Brother’s/Sister’s children

15. Wife’s/Husband’s sister

16. Wife’s/Husband’s brother

(27) in the second proviso to clause (e) of rule 46, for the words “District Co-

operative Banks” the words “the Kerala State Co-operative Bank” shall be

substituted.

(28) in clause (e) of rule 47, after the words “accounts are written up” the words

“or digitally prepared” shall be inserted.

(29) after rule 50, the following rule shall be added, namely:-

"50 A. Training Programme,- Every elected and co-opted members of

the committee of a Co-operative society shall attend the training programme

conducted by the Administrative Department concerned or the State Co-operative

Union or the Agricultural Co-operative Staff Training Institute or the Institute of Co-

operative Management, within one year from the date of such election as a member or

co-option as a member to the committee.".

(30) in rule 51A,-

(a) in sub-rule (2), the words and symbol “District Co-operative Bank,” shall

be omitted;

(b) in sub-rule (3),-

(i) the words and symbol “District Co-operative Bank,” shall be omitted

(ii) after the existing sentence ending with the words and symbol “is

situated”, the following sentence shall be added, namely:-

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“First charge of the property shall be vested with Bank or Society

concerned as provided in section 35 of the Act.”.

(31) in rule 53,-

(a) in sub-clause (a) of sub-rule (2), for the figure “60000” the words “one

lakh” shall be substituted;

(b) in sub-rule (3A), after the words “net profit” the symbols and

words “subject to a maximum of rupees one lakh,” shall be inserted.

(32) in rule 54,-

(a) for the opening paragraph, of sub-rule (1) the following shall be substituted,

namely:-

“(1) A society may, with the previous sanction in writing of the Registrar,

invest the whole or any portion of its funds for the purchase or lease of land on

acquisition, construction or renewal of any building that may be necessary to conduct

its business from the net profits of the society as per the bye-laws. A society shall not

invest not more than five percent of its working capital. The amount of funds raised

out of working capital so invested shall be recouped on such terms as may be

determined in each case as per the direction of the Registrar. The Registrar shall grant

such sanction for the investment of funds after evaluating the financial condition of

the society, necessity of such investment, feasibility of the project for which funds

are invested.”.

(b) after sub-rule (1), the following sub-rule shall be added, namely:-

“(1A) A society shall publish a notice showing its intention to purchase

immovable property with the details such as the name of society, the locality in

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which it desire to purchase the immovable property and the extend of land in two

vernacular dailies having wide circulation in the area of operation of the society.

(1B) The valuation of the immovable property shall be fixed, by a

committee constituted by the Registrar consisting of Joint Registrar (General)

or the District Officer of the Administrative Department of the District concerned, as

the case may be, the Joint Director of Co-operative Audit of the District, the

Valuation Officer of the Primary Co-operative Agricultural and Rural

Development Bank in the area of operation of the society, a retired officer from the

Revenue Department not below the rank of Deputy Tahsildar, and a retired

officer from the Registration Department not below the rank of Sub-

Registrar, considering the market value of the immovable property. If the

immovable property includes in a building, a retired officer from the Public Works

Department or the Local Self Government Department not below the rank of

Assistant Executive Engineer shall also be included in the committee for fixing the

value of the building;

Provided that while fixing the value of immovable property the committee may

consider the fair value fixed by the Government from time to time or the

valuation certificate issued by the Revenue Authority concerned or the average

value of three registered sale documents of land within three years of time and within

a radius of 3 kilometers from the property to be valued;

Provided further that the committee may fix the value of the

immovable property as per the market value arrived at by the committee if the values

provided as per the above provision is not adequate with the existing market value of

the area.”;

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“(4) The Registrar may issue guidelines on the amount to be spend by each

type and class of society in every three year for the purchase of movable properties

that may be necessary for the conduct of the business of the societies.”.

(33) after rule 56, the following rule shall be added, namely:-

“ 56A. Valuation of property.- (1) The valuation of immovable property to be

placed as security to a co-operative society for availing loans where the loan amount

is up to Rupees Ten Lakhs, shall be valued by an officer or the officers in the

supervisory cadre authorized by the committee. The authorized officer or officers

shall submit a detailed valuation report considering the market value of the property

and the maximum amount granted as loans shall not exceed more than fifty percent of

such valuation.

(2) If the loan amount exceeds Ten lakhs, it shall be done by a panel of five

members which includes two officers in the supervisory cadre of which one shall be

the Chief Executive of the society and two members of the committee nominated by

the committee of the society and an independent valuer, a retired officer from the

Revenue department not below the rank of Deputy Tahsildar or a retired officer from

the Registration Department not below the rank of Sub-Registrar for the valuation of

land. If the immovable property includes a building, a retired officer from the Public

Works Department or the Local Self Government Department not below the rank of

Assistant Engineer, shall also be included in the committee for fixing value of the

building. The committee shall submit a detailed valuation report considering the

market value of the property and the maximum amount granted as loans shall not

exceed more than fifty percent of such valuation.”

(34) in item (iii) of rule 59, after the words “retired voluntarily” the words “or

resigned” shall be inserted.

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(35) In rule 66, -

(a) in clause (a) of sub-rule (1), after the words “books of accounts” the

words “ which are kept either in digital or in physical form” shall be inserted;

(b) in clause (b) of sub-rule (1), after the word “person” the symbol and

words “/persons” shall be added;

(i) after the words “books of accounts” the words “ which are kept either

in digital or in physical form” shall be inserted;

(ii) after the word “person” the symbol and words “/persons” shall be

added;

(d) in sub-rule (7),-

(i) in sub-clause (d) of clause (i), after the words “ the period” the words

“of three months from the date of order” shall be substituted;

(ii) in clause (ii), for the words “on getting the inquiry report” the words

“ within one month from the date of receipt of inquiry report” shall be substituted;

(e) after sub-rule (7) the following sub- rule shall be added, namely:-

“(8) While conducting an inquiry under section 65 or an inspection under

section 66, the inquiry/inspection officer be transferred or promoted to another post,

the officer conducting inquiry/inspection shall hand over a report of all the work done

till the period of transfer/promotion with supporting documents to the new

inquiry/inspection officer as appointed. The former inquiry/inspection officer be held

answerable for the work done with regard to the inquiry/inspection till his period.

The newly appointed inquiry/inspection officer should start the work in continuation

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of the report handed over by the former inquiry/inspection officer and should submit

the final inquiry/inspection report in time.

(36) in rule 67,-

(a) In sub-rule (4) , for the words and figures “Advocate having not less than

7 years bar experience and who shall appointed by government for a period of three

years as per the terms and conditions fixed by the government” the words, symbols

and bracket “officer of and above the rank of a Munsiff- Magistrate (Civil Judge-

Junior Division) of the Judicial service appointed by the Government on deputation

basis” shall be substituted;

(b) In sub- rule (10),-

(i) for clause (1), the following clause shall be substituted, namely:-

“ (1) Monetary dispute:-

Fifty paise for every claim of Rupees ten or part thereof, subject to a minimum

of Rupees Five hundred and a maximum of Rupees Five Thousand up to rupees Two

Lakh and a maximum of Rupees Seven Thousand Five hundred up to the value of

Rupees Ten Lakh and rupees Ten Thousand for value above rupees Ten Lakh.”;

(ii) in clause (2),-

(a) in the entries against item (a), for the words “One thousand” the

words “One Thousand Five Hundred” shall be substituted;

(b) in the entries against item (b), for the words “Five Thousand” the

words “Seven Thousand Five Hundred” shall be substituted;

(37) in rule 68, after the words “registered post” the words “ within fifteen days”

shall be inserted;

(38) in rule 69,-

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(a) in clause (i) of sub rule (10), for the words “three years” the words “ two

years” shall be substituted;

(b) for sub-rule (12), the following sub-rule shall be substituted,

namely:-

“(12) The Liquidator shall complete the winding up proceedings within a

period of two years from the date of his appointment. If the liqudation proceedings

could not be completed within such period of two years, for the reasons beyond the

control of Liquidator, he may apply to the Government through Registrar with

sufficient reasons for extending the period of liquidation for a maximum of one year.

In the case of existing liquidation cases, pending for more than two years, liquidation

proceedings shall be completed within one year from the date of commencement of

the Kerala Co-operative Societies (Amendment) Act, 2023 (Act 9 of 2024).”.

(39) in sub-rule (1) of rule 123,-

(a) in sub-clause (a) of clause (A), for the figures “200” the figures “500”

and for the figures “2000” the figures “3000” shall be substituted;

(b) in sub-clause (b),-

(i) in entry (i), for the figures “2000” the figures “3000” shall be

substituted;

(ii) in entry (ii), for the figures “500” the figures “750” shall be substituted;

(40) in rule 124A,-

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(a) in sub-rule (1), for the words “ Rupees Two thousand” the words “Rupees

Four Thousand Five Hundred” shall be substituted.

(b) In sub- rule (2), for the words “Rupees One Thousand” the words “Rupees

One Thousand Five Hundred” shall be substituted;

(41) sub- rule (2) of rule 128 shall be omitted.

(42) in rule 129,-

(a) the opening paragraph and the clauses (a), (b), (c) and the Explanation

thereto shall be substituted as follows, namely:-

“ The election of the members to the committee of Circle Co-operative

Union shall be conducted by the State Co-operative Election Commission in the

manner specified below, namely:-

(a) A Circle Co-operative Union shall meet at least sixty days prior to the date of

expiration of its term and pass a resolution fixing the date, time and place for the conduct of the

election of the new committee. A copy of such resolution shall be sent to the State Co-operative

Election Commission, by registered post or through electronic media within a week, through the

Registrar.

(b) The Co-operative Election Commission may on receipt of such a resolution

appoint Returning Officer from among the officers of the Co-operative Department for the conduct

of election. The Returning Officer so appointed may be given such remuneration, as may be, fixed

by Government from time to time. The Returning Officer shall take necessary steps for the conduct

of election and the Circle Co-operative Union shall render all necessary assistance to the Returning

Officer for the conduct of election to the Circle Co-operative Union.

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Returning Officer shall immediately require by notice the committees of the society

within the circle referred to in clause (a) and clause (b) of sub-section (1) of section

88, to furnish within fifteen days from the date of notice, lists of members of the

committees of such societies as also of the full time employees of those societies as

on the date of sixty days prior to the date fixed for the poll. The Returning Officer

shall register the names received in a Register maintained for the purpose.

Explanation- A society having area of operation in more than one Circle shall

be deemed to be a society within the Circle in which the head office of the society is

situated.” ;

(b) in clause (d), for the bracket and letter “(c)”occurring at both places in the

said clause the bracket and letter “(b)” shall be substituted;

“(s) The expenditure in connection with the conduct of election shall be

borne by the Circle Co-operative Unions which shall be limited to the norms fixed

by the State Co-operative Election Commission.

(t) The State Co-operative Election Commission shall have the power to

issue any directions or guidelines or instructions for the conduct of election to the

Circle Co-operative Unions and also to the officers appointed to perform the election

duties. The officers appointed on election duty shall be subject to the

superintendence, control and discipline of the State Co-operative Election

Commission.

(u) The rank of officers to be posted for election duty may be fixed by the

State Co-operative Election Commission in consultation with the Government.”.

(43) in rule 151,-

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(a) for sub-rule (1) the following sub-rule shall be substituted, namely:-

“(1) The managing committee of the State Co-operative Union in office

shall meet at least sixty days in advance of the date of expiration of its term and pass

a resolution fixing the date, time and place for the conduct of the election to the new

committee. A copy of such resolution shall be sent to the State Co-operative Election Commission

by registered post or through electronic media within a week, through the Registrar.”;

(b) in sub- rule (2), for the words “The Registrar” the words “The State Co-

operative Election Commission” shall be substituted;

“(f)” shall be substituted;

(44) after sub-rule (10) of rule 154, the following sub- rules shall be added,

namely:-

“(11) The expenditure in connection with the conduct of election shall be

borne by the State Co-operative Union which shall be limited to the norms fixed by

the State Co-operative Election Commission.

(12) The State Co-operative Election Commission shall have powers to issue

any directions or guidelines or instructions for the conduct of election to the State

Co-operative Union and also to the officers appointed to perform the election duties.

The officers appointed on election duty shall be subject to the superintendence,

control and discipline of the State Co-operative Election Commission.

(13) The rank of officers to be posted for election duty may be fixed by the

State Co-operative Election Commission in consultation with the Government.”.

(45) after rule 170, the following rule shall be added, namely:-

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“170A. The Annual Performance Audit of Kerala Co-operative Milk

Marketing Federation (MILMA) and its Regional Co-operative Milk Producers'

Union.- (1) The Annual Performance Audit of the Kerala Co-operative Milk

Marketing Federation (MILMA) and its Regional Co-operative Milk Producers'

Union shall be entrusted to an approved agency or individuals with the following

qualifications, namely:-

(i) Minimum ten years of experience in technical and managerial cadre

in a reputed firm in Dairy Industry;

(ii) Graduation in Dairy Science and Technology from a recognized

University;

(iii) Post Graduate Degree/Diploma in Management is preferable.

(iv) ISO audit experience is preferable.

(2) The fees or remuneration for performance audit shall be fixed by the

Functional Registrar (Dairy) from time to time.

(3) The apex society shall prepare a panel of experts or agencies within one

month from the end of every financial year and submit it to the Registrar (Dairy) for

approval.

(4) On receipt of such an application from the apex society, the Registrar

(Dairy) shall verify the proposed panel, may make necessary changes as he thinks fit

and may either approve or return the same for clarification within a period of sixty

days from the date of receipt of the application.

(5) On receipt of the Approved panel from the Registrar (Dairy), the Apex

society and the Regional Co-operative Milk Producers' Union shall entrust their

annual performance audit to the agency or individual selected from the approved

panel within thirty days from the date of receipt of the approved panel.

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(6) The entrusted agency or person shall conduct the annual performance

audit and submit the report in time as per the directions of the apex society and

Registrar (Dairy).”.

(46) in rule 178A,-

(a) In the entries against item (i), for the letters, symbols and figures, "Rs.

10,000" the letters, symbols and figure "Rs. 15,000" shall be substituted;

(b) In the opening paragraph and in the entry (i) following under the heading

“Name of the Bank”, the words “District Co-operative Banks” and “and District Co-

operative Banks” shall be omitted;

Bank”, for the figure and symbols "5,000 " the figure and symbol "7,500" shall be

substituted;

(47) in rule 182,-

(a) in the third proviso to sub-rule (1),-

(i) the words and symbol ”District Co-operative Bank/” shall be omitted;

(ii) for the words "rupees two thousand " and rupees five hundred”, the

words " Rupees three thousand " and "Rupees seven hundred and fifty" shall

respectively be substituted;

(b) in sub-rule (4),-

(i) for clause (i) and (ii) the following clauses shall be respectively

substituted, namely:-

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“(i) The society, Board coming under the Co-operative Departments,

the circle Co-operative Unions, the State Co-operative Union, as the case may be,

shall report the vacancy within a period of three months from the date on which the

vacancy arose to the Co-operative Service Examination Board and the applications

for appointment shall be invited by the Co-operative Service Examination Board, by

notification in two vernacular dailies having wide circulation in the area. The

notification shall include the details of number of vacancies, qualifications required

for the post, age and reservation, if any, the mode of application, method of

appointment and other required details. The Co-operative Service Examination Board

shall collect application fee along with the application at the rate fixed by the

Registrar of Co-operative Societies from time to time. If more than one society is

included in the notification, the candidates shall, along with the application, submit

their priority list of societies for getting appointment in societies included in the

notification. The Co-operative Service Examination Board shall process the

applications and prepare the list of candidates to be called for the eligibility test. The

arrangements for the eligibility test shall be made by the Co-operative Service

Examination Board. Once the vacancies reported by the societies to the Co-operative

Service Examination Board, the Societies shall not revoke such report without the

prior permission of the Registrar.

(ii) The Co-operative Service Examination Board shall conduct the

eligibility examination for the candidates and furnish a list of eligible candidates to

be interviewed by the committee of the society, Board coming under the Co-

operative department, the Circle Co-operative Union or the State Co-operative

Union, as the case may be, within a period of three months from the date of

requisition by such society/Board/institution. The list so furnished shall not contain

the mark secured by the candidates.”.

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(ii) after clause (ii), the following clause shall be added, namely:-

“ (iia) the following class of society or societies may be exempted

from sub-section (1) of section 80B of the Act by the Registrar by considering the

number of posts that can be sanctioned as per the staff pattern as per Appendix III of

these Rules and by considering the financial capacity of the society, namely:-

(a) Primary Marketing Co-operative societies

(b) Primary Consumer Co-operative societies

(d) Primary Industrial Processing Co-operative societies

(e) Primary Agro Industrial societies

(f) Farming societies

(g) Primary Producers Co-operative societies

(h) Primary SC/ST Co-operative societies

(i) Primary Hospital Co-operative societies

(j) Primary Fisheries societies

(k) Primary Labour contract Co-operative societies

(l) Primary Educational Co-operative societiesPrimary Vanitha (Women) Co-

operative societies

(m)Primary Tourism Co-operative societies

(n) Primary Miscellaneous Co-operative societies

(o) Primary Multi purpose Co-operative societies

Provided that such exemption shall not be granted to societies having

working capital or sales turnover of more than Two Crores and societies eligible for

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more than five posts as per the classification norms under Appendix III of these

rules.”;

(iii) in clause (iii), for the figures “80” the figures “100” shall be

substituted;

(iv) in clause (iv), for the figures “15” the figures “20” shall be

substituted;

(v) in the proviso, in clause (iv), for the figure “3” the figure “4”

shall be substituted;

(vi) clause (ivA) and the Explanation thereto shall be omitted;

(vii) in clause (v), for the words “ two months” and “ two weeks”

the words “ one month” and“ one week” shall respectively be substituted.

“(7) The appointing authority shall be satisfied as to the character and

antecedents of a person selected for appointment as per the above provisions. The

appointing authority may appoint him temporarily subject to the condition that his

appointment shall be terminated without notice if he is not satisfied of his character

and antecedents on subsequent verification and that he shall be eligible for

appointment in regular service in accordance with the rules only if his character and

antecedents are found satisfactory on subsequent verification. The appointing

authority shall get the necessary details for verification of character and antecedents

of the candidates from the candidates themselves before they are allowed to join duty

and the appointing authority shall obtain the report on the verification of the character

and antecedents of the candidates so appointed within a period not exceeding six

months from the date of joining duty of employee. The appointing authority shall

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obtain reports on the verification of character and antecedents through a police

verification report as in the manner as specified by the Registrar.”.

(48) in rule 185,-

(a) clause (i) and clause (ii) of sub-rule (2) shall be omitted;

(b) clause (i) of sub-rule (3) shall be omitted;

(d) in the first proviso to sub-rule (5), for the words “ in the feeder category”

the words “ in all posts of and above Junior Clerk/Cashier” shall be substituted;

(e) in the proviso to clause (g) of sub-rule (8), the words and symbols “

Accounts Officer in the Kerala State Co-operative Bank Ltd., Branch Manager or

equivalent posts in the District Co-operative Banks,” shall be omitted;

(f) after the first proviso to sub-rule (10), the following proviso shall be

inserted, namely:-

“Provided further that the substantive vacancies in the post of the clerk in

those societies falling under classes II to VII of Appendix III of these rules shall be

filled up by promotion and direct recruitment in the ratio of 1:2 and the promotion of

candidate shall be made from the feeder category in accordance with the merit and

ability to be assessed through a qualifying examination conducted by the Co-

operative Service Examination Board.”.

(49) after rule 185A, the following rule shall be added, namely:-

“185B. Recruitment Rules relating to societies in Schedule I.- The Government

may prepare and notify the recruitment rules of the societies mentioned in sub-

section (3A) of Section 80 and in Schedule I of the Act from time to time.”.

(50) in sub-rule (1) of rule 186,-

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(a) in the entry against item (ib) for the words and symbol “Chartered

Accountants of India,” the words, bracket and symbol “Chartered Accountants of

India or Cost and Management Accountant (CMA),” shall be substituted;

(b) after clause (ib), the following clause shall be added, namely:-

“(ic) System Administrator MCA/B.Tech (Computer Science or Electronic

communication or Information Technology)”.

(51) the first proviso to rule 187 shall be omitted;

(52) sub-rule (2) of rule 188A shall be omitted;

(53) in Appendix III in item (b) “ Central Co-operative Banks (District Co-

operative Banks)” and the entries against it shall be omitted;

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Form No. 3B

[ See Rule 4B]

Certificate of change of name of the Societies

This is to certify that the following change of name is made in the Registration

Certificate issued under section 8 of the Kerala Co-operative Societies Act, 1969

(Act 21 of 1969).

Sl.

No.

Existing name and

address of the society

New name and address

of the society

Date of effect

(1)

(2)

(3)

(4)

(5)

Place (Seal)

Date Registrar of Co-operative Societies

By Order of the Governor,

DR. Veena N. Madhavan,

Special Secretary to Government.

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Explanatory Note

[This does not form part of the notification, but is intended to indicate its

general purport.]

Government have decided to revise non-tax revenue and notified the revised

rates of non-tax revenue items as required under sub-section (1) of section 109 of the

Kerala Co-operative Societies Act, 1969 (21 of 1969) as per Notification No. Co-op-

B1/459/2019/Co-op dated 06^th April, 2022 in the Kerala Gazette Extra Ordinary

No.1226 dated 13^th April, 2022. The Kerala Co-operative Societies Act, 1969 (Act 21

of 1969) has been amended by the Kerala Co-operative Societies (Amendment) Act,

2021 (Act 34 of 2021). Then Kerala Co-operative Societies Act, 1969 (Act 21 of

1969) has been amended comprehensively by the Kerala Co-operative Societies

(Amendment) Act, 2023 (Act 9 of 2024). Consequently, the Kerala Co-operative

Societies Rules, 1969 has to be amended to make it in accordance with the provisions

of the said Amendment Acts. Government therefore decided to bring amendments in

the Kerala Co-operative Societies Rules, 1969. Accordingly, the draft rules were

previously published as required under sub-section (1) of section 109 of the Kerala

Co-operative Societies Act, 1969 (21 of 1969) as per Notification No. Co-op-

B1/258/2019/Co-op dated 27^th July, 2024 in the Kerala Gazette Extraordinary

No.2430 dated 28^th July, 2024 inviting suggestions or objections, if any, in respect of

the said draft rules. Government have received many suggestions and objections and

after considering the same, it is now decided to make necessary modifications in the

rules.

The notification is intended to achieve the above objects.

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____________________________________________________________________________________________________________________________

PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSES

AT THE GOVERNMENT CENTRAL PRESS, THIRUVANANTHAPURAM, 2024