Punjab Overhauls 165-Year-Old Societies Act for Enhanced Accountability
The Punjab cabinet has given its approval to significantly amend the centuries-old Societies Act of 1860 through the introduction of the Societies Registration (Punjab Amendment) Act, 2025. This landmark decision aims to establish a uniform and transparent regulatory framework for all societies operating within the state.
Industries Minister Sanjeev Arora emphasized that this amendment will bring about a transformative change in how societies function, particularly those engaged in critical sectors like health, education, sports, social welfare, and charitable activities. The revised regulatory framework ensures responsible utilization of public funds and tax-exempt resources.
Key Transparency Measures Under the New Act
One of the most significant provisions mandates that all registered societies in Punjab will now fall under the purview of the Right to Information (RTI) Act. This move guarantees public scrutiny and promotes transparency in decision-making processes, ultimately building greater public trust in these organizations.
The amendment empowers registrars to seek any information or records from societies to verify compliance with legal requirements. This authority helps prevent potential misuse of funds or deviation from stated organizational objectives.
Mandatory Registration Renewal and Property Transaction Controls
Under the new regime, all societies must renew their registration every five years. This periodic renewal ensures that societies remain actively functional, maintain accurate records, and undergo regular verification of their objectives and management practices.
All existing societies in Punjab have been given a one-year deadline from the enforcement of the amended Act to complete their re-registration process. This brings them under the new compliance and transparency framework that the government has established.
The amendment introduces strict controls on property transactions. No society can sell, transfer, or dispose of immovable property without obtaining prior approval from the Registrar. This provision prevents unauthorized transactions and serves to safeguard public assets effectively.
Enhanced Oversight and Administrative Powers
The implementation framework designates Deputy Commissioners (DCs) as the overseeing authorities for societies registered within their jurisdictions. These officials receive enhanced powers to maintain proper oversight.
In cases where complaints arise, DCs can order inquiries to be conducted by officers holding the rank of Tehsildar. If any wrongdoing is detected and the society fails to correct it within the prescribed timeframe, DCs can appoint an SDM-level Administrator to take charge and restore proper functioning.
The amendment also addresses naming conventions for new societies. Registration will be denied if a proposed name is already in use within the same jurisdiction or if it bears deceptive similarity to an existing name that might mislead the public.
Minister Arora highlighted that many charitable institutions register as societies to avail income tax benefits. The amended Act ensures these organizations follow strict compliance and accountability norms to continue receiving such exemptions, thereby safeguarding public and charitable institutions.
The original Societies Act of 1860 provided the legal framework for registering societies formed for literary, scientific, charitable, and cultural purposes. The current amendments specifically target improved monitoring of societies engaged in health services, educational institutions, sports bodies, and other public-oriented charitable activities.
This comprehensive overhaul represents the Punjab government's commitment to ensuring that societies operating with public funds or tax benefits maintain the highest standards of transparency and accountability in their operations.
