Section 60 of MSCS Act, 2002 : Section 60: Deduction From Salary To Meet Multi-State Co-Operative Society?S Claim In Certain Cases

Explanation using Example

Imagine John is a member of a multi-state cooperative society which provides loans to its members. John has taken a loan from the society and has agreed to repay it through monthly deductions from his salary. John signs an agreement that authorizes his employer, TechCorp, to deduct a specified amount from his monthly salary to repay the loan. This agreement is in line with Section 60(1) of The Multi-State Co-operative Societies Act, 2002.

Upon receiving a written request from the cooperative society, TechCorp starts deducting the agreed amount from John's salary each month and forwards this deduction to the society within 14 days, as per Section 60(2). This arrangement continues until the cooperative society notifies TechCorp that John's debt has been fully repaid.

If TechCorp fails to make the deduction or does not remit the deducted amount to the society, as per Section 60(3), the society can recover the owed amount from TechCorp as if it were arrears of land revenue, and this claim would have the same priority as unpaid salary or wages.