UPSC Prelims Practice Questions — Strengthening of MSCS Act

Q1. With reference to the Cooperative Election Authority (CEA) as it stands after the MSCS (Amendment) Act, 2023 compared with the position under the unamended MSCS Act, 2002, consider the following statements. Which of the statements given above is/are correct?

  1. The CEA was created by the MSCS (Amendment) Act, 2023, whereas before the amendment multi-State cooperative societies had no dedicated statutory authority to superintend their elections.
  2. The CEA has been established under Section 45 of the MSCS Act, 2002.
  3. Unlike the pre-amendment arrangement, the CEA's mandate is confined solely to preparation of electoral rolls and does not extend to the actual conduct of elections.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. The Cooperative Election Authority constituted under the MSCS Act, 2002 comprises a Chairperson, a Vice-Chairperson and Members. Which one of the following is its presiding/lead functionary?

  • A. Chairperson
  • B. Vice-Chairperson
  • C. Central Registrar of Cooperative Societies
  • D. Cooperative Ombudsman

Q3. Under the framework notified pursuant to the MSCS (Amendment) Act, 2023, the Cooperative Ombudsman is authorised to enquire into complaints of members relating to their deposits, equitable benefits and individual rights. How many distinct categories of such member grievances fall within the Ombudsman's enquiry mandate?

  • A. One
  • B. Two
  • C. Three
  • D. Four

Q4. Which one of the following Articles was newly inserted (rather than merely amended) by the 97th Constitutional Amendment Act, 2011 to serve as the lead Directive Principle promoting the voluntary formation and autonomous functioning of cooperative societies?

  • A. Article 43B
  • B. Article 43A
  • C. Article 43
  • D. Article 48A

Q5. With reference to the changes made by the 97th Constitutional Amendment Act, 2011, consider the following statements. Which of the statements given above is/are correct?

  1. It inserted a new Part IXB comprising Articles 243ZH to 243ZT dealing with co-operative societies.
  2. While Article 43B was added to Part IV (Directive Principles), the amendment to Article 19(1)(c) brought forming co-operative societies within the fundamental right to form associations.
  3. Part IXB was inserted into Part III of the Constitution alongside the Fundamental Rights.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. With reference to the Supreme Court judgment in Union of India v. Rajendra N. Shah (2021), consider the following statements. Which of the above is/are NOT correct?

  1. The Court struck down Part IXB for want of ratification by half the State Legislatures.
  2. Articles 43B and 19(1)(c) were also struck down along with Part IXB.
  3. By severability, Part IXB was upheld in so far as it applies to multi-State co-operative societies.
  4. The Court relied on the proviso to Article 368(2) concerning ratification requirements.
  • A. 1 and 3
  • B. 2 only
  • C. 3 and 4
  • D. 1 and 4

Q7. Regarding how the Supreme Court in Union of India v. Rajendra N. Shah (2021) treated State cooperatives as distinct from multi-State cooperatives, consider the following statements. Which of the statements given above is/are correct?

  1. The Court struck down Part IXB in its application to cooperative societies operating wholly within a single State.
  2. In contrast, Part IXB was held valid for multi-State cooperative societies and for cooperatives in Union Territories.
  3. The bench was unanimous, with all three judges agreeing on the question of severability.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. In the context of the Ministry of Cooperation, the motto 'Sahakar se Samriddhi' is best rendered as which one of the following?

  • A. Prosperity through Cooperation
  • B. Self-reliance through collectives
  • C. Development through cooperatives
  • D. Unity through cooperation

Q9. Under the MSCS Act, 2002, the Central Registrar of Cooperative Societies has jurisdiction over cooperative societies whose objects are not confined to how many State(s)?

  • A. One
  • B. Two
  • C. Three
  • D. Five

Q10. With reference to the legislative passage of the MSCS (Amendment) Bill/Act, consider the following statements. Which of the statements given above is/are correct?

  1. The MSCS (Amendment) Bill, 2022 was introduced in the Lok Sabha on 7 December 2022.
  2. The Bill was referred to a Joint Committee of both Houses of Parliament.
  3. The MSCS (Amendment) Act was notified on 3 August 2023.
  4. The Rules under the amended Act were notified on the same day as the Act, i.e. 3 August 2023.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q11. In the regulatory response to fraud in multi-State cooperative societies under the MSCS (Amendment) Act, 2023, the term 'concurrent audit' is best defined as which one of the following?

  • A. An ongoing audit conducted through the financial year for MSCS with turnover or deposits exceeding ₹500 crore, to enable early detection of fraud
  • B. A one-time forensic audit ordered by the Comptroller and Auditor General for all MSCS
  • C. A decennial audit conducted by the respective State Registrar of Cooperative Societies
  • D. A voluntary audit undertaken by the member-depositors of the society