Where it appears to the Registrar that any person has contravened the provisions of this Act, the rules or bye-laws-
(a) by sitting or voting or exercising his rights as a member, or as a member of any managing or controlling body, or voting in the affairs of a registered co-operative society as a representative of another co-operative society which is a member of such co-operative society, when such person was not entitled to sit, vote or exercise such rights, as the case may be, or
(b) by utilizing the
(i) Government Financial Assistance
(ii) Co-operative Societys Fund and
(iii)Loan for a purpose different from that for which it was granted, the Registrar may, after affording such person an opportunity to be heard, by an order in writing direct him to pay the assets of the cooperative society by way of penalty such sum not less than five thousand rupees as the Registrar thinks fit.
(a) by sitting or voting or exercising his rights as a member, or as a member of any managing or controlling body, or voting in the affairs of a registered co-operative society as a representative of another co-operative society which is a member of such co-operative society, when such person was not entitled to sit, vote or exercise such rights, as the case may be, or
(b) by utilizing the
(i) Government Financial Assistance
(ii) Co-operative Societys Fund and
(iii)Loan for a purpose different from that for which it was granted, the Registrar may, after affording such person an opportunity to be heard, by an order in writing direct him to pay the assets of the cooperative society by way of penalty such sum not less than five thousand rupees as the Registrar thinks fit.
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More sections of this act
Section 1 · Short title,extent and commencementSection 2 · DefinitionsSection 3 · The Registrar.Section 4 · Co-operative Societies which may be registered.Section 5 · Age, qualification of a member.Section 6 · Conditions of registration.Section 7 · Restrictions on acquisition of Share in a Cooperative Society.Section 8 · Power of Registrar to decide certain questions.India Code, Government of India. Text fetched 10 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.