(1) If on the basis of an audit, inquiry, inspection or a Liquidator's report made under the provisions of this Act, it comes to the knowledge of the Registrar that any person, who has taken any part in the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to the provisions of this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Registrar may, inquire himself or direct any person authorised by him by an order in writing in this behalf, to inquire into the conduct of such person:
Provided that no inquiry into the conduct shall be done under this section by a person who has earlier submitted report of audit, inquiry, inspection or liquidation in the same matter:
Provided further that no such inquiry shall be held after the expiry of six years from the date of an act or omission or after the expiry of two years from the date of knowledge of the Registrar of such act or omission:
Provided also that any business loss occurred due to an act done or decision taken in the interest of the society with a common business prudence shall not be a subject matter of such inquiry.
(2) Where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned an opportunity of representing his case, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and costs or compensation to such extent, as the Registrar may consider just and equitable.
(3) This section shall apply notwithstanding that such person or officer may have incurred criminal liability by his act.
Explanation:-66[x x x]
Provided that no inquiry into the conduct shall be done under this section by a person who has earlier submitted report of audit, inquiry, inspection or liquidation in the same matter:
Provided further that no such inquiry shall be held after the expiry of six years from the date of an act or omission or after the expiry of two years from the date of knowledge of the Registrar of such act or omission:
Provided also that any business loss occurred due to an act done or decision taken in the interest of the society with a common business prudence shall not be a subject matter of such inquiry.
(2) Where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned an opportunity of representing his case, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and costs or compensation to such extent, as the Registrar may consider just and equitable.
(3) This section shall apply notwithstanding that such person or officer may have incurred criminal liability by his act.
Explanation:-66[x x x]
Source footnotes
66 Deleted by Act No. 11 of 2003 (w.e.f. 8.4.2003)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.