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Punjab Government Amends 165-Year-Old Act to Curb Malpractices by Societies

Chandigarh, November 29, 2025 In a major administrative reform, the Aam Aadmi Party government in Punjab has amended the Societies Registration Act of 1860, bringing over 100,000 societies under stricter regulatory oversight and making them accountable under the Right to Information Act.

The amendments, approved in a cabinet meeting held on Friday, aim to curb malpractices by societies that have been operating with minimal oversight, often under the guise of charitable work.

Societies Must Re-register Within a Year

Under the new Societies Registration Punjab Amendment Act, 2025, all existing societies in the state will be required to re-register with the Registrar’s office within one year. Subsequently, registrations will need to be renewed every five years.

The state has over 100,000 registered societies under the Industries Ministry, most of which are involved in charitable activities related to health, education, and sports. However, the government has received approximately 150 complaints alleging irregularities and fraudulent practices by various societies.

Key Provisions of the Amendment

The amended Act introduces several stringent measures to ensure transparency and accountability:

Registration and Compliance:

  • Mandatory re-registration within one year for all existing societies
  • Five-yearly renewal of registration
  • No two societies can have similar names within a district
  • Annual audits mandatory for all societies
  • Societies now covered under the RTI Act

Property Transactions:

  • Societies cannot sell or transfer property without explicit permission from the Registrar
  • This provision aims to prevent misuse of assets acquired through government grants or public donations

Electoral and Administrative Oversight:

  • Societies must conduct elections on time
  • District Collectors empowered to order investigations by Tehsildar-level officers upon receiving complaints
  • If irregularities are proven, an officer of SDM rank or higher will be appointed as administrator for six months to one year
  • Non-compliant societies face dissolution and further legal action

Shifting from Union to State Control

Until now, the Societies Act of 1860 fell under the Union List, severely limiting the state government’s ability to take meaningful action against erring societies. The fines under the old framework were negligible, and enforcement mechanisms were weak.

By amending the Act and bringing it under the State List, Punjab has gained greater regulatory control. IAS officer Surabhi Malik played a crucial role in drafting the legislation.

Punjab becomes the 19th state in India to amend this colonial-era legislation to address contemporary governance challenges.

Government Justifies the Move

Industries Minister Sanjeev Arora defended the amendments, stating that societies receiving government land and funds in the name of charitable work were not being adequately reviewed.

Changes to this Act were essential because societies that acquire land and funds from the government and other sources in the name of charitable work were not being properly reviewed. Despite receiving complaints from many societies, the government was unable to do anything substantial. Now, these societies will have to operate within the rules,” Arora said.

The minister emphasized that while the vast majority of societies perform genuine charitable work, the lack of oversight had created opportunities for misuse of public resources.

What This Means for Societies

The amendments signal a significant shift in how charitable organizations will operate in Punjab. While legitimate societies engaged in genuine welfare activities are expected to comply smoothly, those involved in fraudulent practices or mismanagement will face strict consequences.

Legal experts suggest that the RTI coverage will be particularly transformative, allowing citizens to seek information about how societies utilize government grants and public donations.

The one-year window for re-registration is expected to result in a comprehensive clean-up of the sector, with inactive or shell societies likely to be weeded out during the process.

The Punjab government has indicated that support mechanisms will be established to help genuine charitable organizations navigate the new compliance requirements, ensuring that legitimate welfare work continues uninterrupted while malpractices are effectively curbed.

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