Ministry of Cooperation notifies MSCARO 2026, a CARO-style audit reporting order for multi-state cooperative societies

14 October 2026

The Ministry of Cooperation notified the Multi-State Co-operative Society (Auditor's Report) Order, 2026, known as MSCARO 2026, under Section 73(6) of the Multi-State Co-operative Societies Act as amended in 2023. The order is modelled on the Companies (Auditor's Report) Order, or CARO, used in the corporate sector. The Ministry drew on suggestions from the Reserve Bank of India, the Institute of Chartered Accountants of India, the Comptroller and Auditor General of India and multi-state cooperative societies. Auditors must report in a prescribed format on financial, administrative, governance and statutory compliance points, answering yes or no and adding comments. Areas covered include early warning signs of financial stress such as non-performing assets, overdue loans, liquidity, deposits and borrowings, protection of member funds and share capital, board composition and director eligibility, general and board meetings, statutory committees, related-party transactions and, where applicable, cybersecurity and anti-money laundering compliance. The Central Registrar of Cooperative Societies will use the findings to identify higher-risk societies and prioritise inspections, feeding into the CRCS portal. Implementation is phased: the initial phase covers large societies with a financial size above ₹1,000 crore, and the order is intended over the long term to extend to societies above ₹50 crore.