(1) Notwithstanding anything contained in any law for the time being in force, the Government may, -
(a) subscribe directly to the share capital of a co-operative society;
(b) subject to the appropriate bye-laws, provide moneys to an apex society for purchase of shares in other co-operative societies, subjects to the condition that no such shares in any co-operative society shall be purchased except with the previous approval of the Government in each case;
(c) give loan or make advances to co-operative societies;
(d) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society;
(e) guarantee the repayment of share capital of co-operative society and dividends thereon, at such rates as may be specified by the Government;
(f) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society;
(g) give financial assistance in any other form, including subsidies, to any co-operative society:
Provided that liability in respect of any shares purchased with Government money either directly by the Government or through any other co-operative society shall, in the event of its being wound up, be limited to the amount paid in respect of such shares:
52[ Provided further that the Government shall not hold more than twenty-five percent of the total share capital of a short term co-operative credit structure society and such society or the Government shall have option to further reduce the Government's share capital.]
(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to a dividend or interest on shares of any such co-operative society at a rate higher than that at which such dividend or interest is payable to any other shareholder of the society.
(a) subscribe directly to the share capital of a co-operative society;
(b) subject to the appropriate bye-laws, provide moneys to an apex society for purchase of shares in other co-operative societies, subjects to the condition that no such shares in any co-operative society shall be purchased except with the previous approval of the Government in each case;
(c) give loan or make advances to co-operative societies;
(d) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society;
(e) guarantee the repayment of share capital of co-operative society and dividends thereon, at such rates as may be specified by the Government;
(f) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society;
(g) give financial assistance in any other form, including subsidies, to any co-operative society:
Provided that liability in respect of any shares purchased with Government money either directly by the Government or through any other co-operative society shall, in the event of its being wound up, be limited to the amount paid in respect of such shares:
52[ Provided further that the Government shall not hold more than twenty-five percent of the total share capital of a short term co-operative credit structure society and such society or the Government shall have option to further reduce the Government's share capital.]
(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to a dividend or interest on shares of any such co-operative society at a rate higher than that at which such dividend or interest is payable to any other shareholder of the society.
Source footnotes
52 Added by Act No. 7 of 2010 (w.e.f. 16.10.2009).आगे पढ़ें / Continue reading
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Section 1 · Short title, commencement and extentSection 2 · DefinitionsSection 3 · Promotion of Co-operative movementSection 4 · RegistrarSection 5 · Application for registration of co-operative societiesSection 6 · RegistrationSection 7 · Co-operative Societies to be bodies corporate -Section 8 · Bye-lawsIndia Code, Government of India. Text fetched 21 Oct 2026. Source metadata reports last modification: 2024-01-24. Check the linked official text and subsequent notifications when applying a provision.