Fraudulent activities in the Multi-State Cooperative Societies (MSCS)

• MSCS are cooperative societies whose objects/operations span more than one State, registered under the Multi-State Co-operative Societies Act, 2002, administered by the Ministry of Cooperation (created July 2021).
• Fraud in MSCS (bogus members, captive boards, fictitious loans, deposit siphoning — e.g., Sahara, Adarsh-style cases) prompted the MSCS (Amendment) Act, 2023 to plug governance, election and audit gaps.
• Examinable across GS-II (governance, statutes), GS-III (cooperative banking, financial irregularities) and current affairs.