## Inquiry and Inspection by Central Registrar (Sections 78 & 79)

### Who Can Request an Inquiry?

The Central Registrar (CG) may hold an inquiry — or authorise a person in writing to do so — into the constitution, working and financial condition of a Multi-State Co-operative Society (MSCS) on request from:

Requesting Party	Threshold
A federal cooperative to which the MSCS is affiliated	General or special order required
A creditor	General or special order required
Board members	Not less than 1/3rd of board members
Members of the MSCS	Not less than 1/5th of total members

> Notice requirement: At least 15 days' notice must be given to the MSCS before holding such inquiry.

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### Powers During Inquiry vs. Inspection

#### Inquiry Powers

Access books, accounts, documents, securities, cash and other properties at any reasonable time.
Summon any person responsible for custody of records to produce them at a specified place.
Require officers to call a General Meeting with not less than 7 days' notice at the society's HQ; if officers fail to call it, the CG/authorised person may call it directly.
Summon any person believed to have knowledge of the society's affairs; examine on oath.

#### Inspection Powers

Access to all books, accounts, papers, vouchers, securities, stock and property at all times.
In case of serious irregularity: take records into custody and verify cash balance.
Call a meeting of the society if a general meeting is considered necessary (requires general or special order of Central Registrar).
Every officer/member must furnish information about the working of the society as required.

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### Communication of Report

The Central Registrar must, within 3 months from the date of receipt of the inquiry report, communicate the report to:

1. The MSCS itself

2. Any financial institution to which the society is affiliated

3. The person/authority at whose instance the inquiry was initiated

Worked example

### Example 1

Example – Who can trigger an inquiry?

ABC MSCS has 200 members and a 12-member board. A group of 40 members (= 1/5th of 200) approaches the Central Registrar alleging financial mismanagement. This threshold is met, so the CG may order an inquiry. Had only 30 members approached (= 15%, less than 1/5th), the request would not qualify under the member-threshold route.

### Example 2

Example – Notice requirement:

The CG receives a valid complaint on 1 June. Before commencing inquiry, notice must be served to the MSCS by 16 June at the latest (15 days' notice). Inquiry can commence from 17 June onwards.

⚠️ Common exam mistakes

Confusing 'inquiry' (triggered by request, requires 15-day notice, at reasonable time) with 'inspection' (access at ALL times, can take custody on serious irregularity).
Forgetting that a creditor alone can request an inquiry — students often list only members and board members.
Mixing up the thresholds: 1/3rd is for board members; 1/5th is for general members.
Missing the 3-month deadline for communicating the inquiry report — this is a frequently tested specific period.
Assuming the CG must personally conduct the inquiry — they can authorise another person in writing.

Bare-Act text Sections 78 & 79 · Multi-State Co-operative Societies Act · click to expand

The Central Registrar on a request from a federal cooperative to which the MSCS is affiliated, a creditor, not less than 1/3rd of board members, or not less than 1/5th of members, shall hold an inquiry or direct a person authorised by him by order in writing to hold inquiry into the constitutions, working and financial condition of the MSCS. Before holding such inquiry, at least 15 days notice must be given to MSCS.

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Inquiry and Inspection by Central Registrar under MSCS Act (Sections 78 & 79)

Worked example

⚠️ Common exam mistakes