MANAGEMENT OF
SOCIETIES
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73-CB.
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State Co-op Election Authority [* Was inserted By MAH. XXIV of 1961]
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(1)
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The superintendence, direction and
control of the preparation of the electoral rolls for, and the conduct of, all
elections to a society shall vest in the authority called as 'the State
Co-operative Election Authority', as may be constituted by the State
Government in that behalf. Every general election of the members of the
committee and election of the office-bearers of a society including any
casual vacancy, to the extent applicable, shall be held as per the procedure
prescribed.
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(2)
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The State Co-operative Election
Authority shall consist of a State Co-op Election Commissioner, who has held
the post not below the rank of Secretary to the State Government. The State
Co-operative Election Commissioner shall be appointed by the Governor. The
State Co-op Election Commissioner shall hold the office for a period of three
years and he may be re-appointed for a further period of two years. The
office of the State Co-operative Election Authority shall be at such place as
may be notified by the State Government:
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Provided that, a person appointed
as the State Co-operative Election Commissioner shall retire from the office
on completion of the age of sixty-five years.
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(3)
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The State Government shall appoint
on deputation, any person holding a post not below the rank of Additional
Registrar, as a Secretary to the State Co-operative Election Authority.
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(4)
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Subject to the provisions of
sub-section (2), other conditions of service, including the salary and
allowances, of the State Co-operative Election Commissioner shall be such as
may be prescribed. Subject to the provisions of sub-section (6), the State
Co-operative Election Commissioner shall be removed from his office only by
an order of the Governor on the ground of proved misbehavior or incapacity after
an inquiry ordered by the Governor and conducted by a retired Judge of the
High Court, who has on inquiry, reported that the State Co-operative Election
Commissioner ought to be removed on such ground.
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(5)
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The Governor may suspend the State
Co-operative Election Commissioner from his office, and if deemed necessary,
also prohibit him from attending the office during inquiry, if an inquiry has
been ordered under sub-section (4), until the Governor has passed the orders
on receipt of the report of the retired High Court Judge.
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(6)
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Notwithstanding
anything contained in sub-section (5), the Governor may, by order, remove the
State Co-operative Election Commissioner from his office, if he,-
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(a)
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is adjudged an insolvent; or
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(b)
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has been convicted of an offence
which, in the opinion of the Governor involves moral turpitude; or
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(c)
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has engaged during his term of
office in any paid employment outside the duties of his office; or
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(d)
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is, in the opinion of the Governor,
unfit to continue in office by reason of infirmity of mind or body; or
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(e)
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has acquired such financial or
other interest as is likely to affect prejudicially his functions as the
State Co-operative Election Commissioner.
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(7)
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The State
Government, after consultation with the State Co-operative Election
Commissioner, shall provide the officers and employees for his office, to
assist him in performing his functions under this Act.
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(8)
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The State
Government shall, when so requested by the State Co-operative Election
Commissioner make available to the State Co-operative Election Authority such
staff as may be necessary for discharge of the functions conferred on the
State Co-operative Election Authority by sub-section (1).
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(9-a)
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If any person to whom sub-section
(8) applies is, without reasonable cause, guilty of any act or omission in
discharge of his official duty, he shall, on conviction, be punished with
fine which may extend to five hundred rupees.
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(b)
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No suit or other legal proceedings
shall lie against any such person for damages in respect of any such act or
omission as aforesaid.
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Explanation.-
For the purposes of this sub-section, the expression “persons to whom sub-section
(8) applies” are the Returning Officers, Assistant Returning Officers,
Presiding Officers, Polling Officers and any other persons appointed to
perform any duty in connection with the receipt of nominations or withdrawal
of candidatures, or the recording or counting of votes at an election; and
the expression “official duty” shall be construed accordingly, but shall not
include duties imposed otherwise than by or under this Act.
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(10)
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Notwithstanding
anything contained in any law for the time being in force, the election of
the committee of each society shall be conducted by the State Co-operative
Election Authority before the expiry of the term of the existing committee so
as to ensure that the newly elected members of the committee assume office
immediately on the expiry of the office of the members of the outgoing
committee.
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(11)
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The State Co-operative Election
Authority shall hold the elections of the society or class of societies as
per the procedure, guidelines and the manner, including using the latest
technology and expertise, as may be prescribed:
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Provided that, the State Government
may, considering the objects of the society, class of societies, area of
operation and norms of business and for proper management and interest of
members, may by general or special order, classify the societies in such
manner as may be prescribed.
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(12)
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The State
Co-operative Election Authority shall conduct elections to the committee and
also to office of President or Chairperson, Vice-President or
Vice-Chairperson and such other office bearers as are required to be elected
as per the by-laws of the society, within fifteen days from the constitution
of the committee after a general election.
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(13)
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There shall be an Election Fund
maintained at level of the State Co-operative Election Authority. Every
society shall deposit in advance, the estimated amount of expenditure on its
election, as may be prescribed and required by the State Co-operative
Election Authority towards the Election Fund. The State Co-operative Election
Authority shall incur the necessary expenses, for the conduct of the
elections of the societies, including the election of the office bearers,
from the said fund. The expenses of the holding of any election, including
the payment of travelling allowances, daily allowances and remuneration, if
any, to the persons appointed to exercise the powers and perform the duties in
respect of the election, shall be incurred from the said fund and the
expenditure shall be made in the manner prescribed. The Registrar, on
requisition by the State Co-operative Election Authority, shall recover
expenses of holding election from any such society or class of societies:
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Provided that,
if any society fails to pay the election expenses, the Registrar may issue
the recovery certificate for recovery of the amount due and such amount shall
be recovered as arrears of land revenue.
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(14)
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The committee of every co-operative
society shall,
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(a)
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inform the
State Co-operative Election Authority about the expiry of its term of office
at-least six months before the date of expiry of such term;
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(b)
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inform any casual vacancy occurred
in the committee or its office bearers, within fifteen days of the occurrence
of such vacancy;
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(c)
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furnish such books, records and
information as the State Co-operative Election Authority may require as per
the calendar specified by the State Co-operative Election Authority;
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(d)
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Provide all
necessary help, assistance and co-operation for the smooth preparation of
electoral rolls for the conduct of elections.
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(15)
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Notwithstanding
anything contained in this Act, the rules or the by-laws of any co-operative
society, the election to the committee and consequent election of the
office-bearers which is due on the date of commencement of the Maharashtra
Co-operative Societies (Amendment) Act, 2013, or may become due after such
date, until 31st March 2013 shall be held before the 31st December 2013.”
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73-F.
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Election to more than one seat on the
committee of the society.- [* Was substituted By MAH. XXIV of 1961]
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“If a person
is elected to more than one seat on the committee then, unless within a
period of thirty days from the date of declaration of the result of the
election he resigns all but one of the seats by writing under his hand
addressed to the Election Officer, or as the case may be, the officer
authorised by the State Co-operative Election Authority in this regard, all the
seats shall become vacant. On receipt of such resignation or on the seats
becoming so vacant, the Election Officer, or as the case may be, the officer
authorised by the State Co-operative Election Authority in this regard shall
cause to hold the election for filling the vacancy.”
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73-FFF.
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Eligibility for re-appointment or re-election as member
of committee.—[* Was deleted By MAH. XXIV of 1961]
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(1)
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A member of a committee, who has ceased to be a member
thereof, on account of having incurred disqualification under clause (ii) of
sub-section (1) of section 73-FF shall be eligible to be re-appointed,
re-nominated, re-co-opted or re-elected as a member of the committee after
the expiry of the period of two years from the date on which he has so ceased
to be a member of the committee.
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(2)
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A member of a committee, who has ceased to be a member
thereof, on account of having incurred disqualification under clause (iii) of
sub-section (1) of section 73-FF, shall be eligible to be re-appointed,
re-nominated, re-co-opted, or re-elected as a member of the committee after
the expiry of the period of five years from the date on which he has so ceased
to be a member of the committee.
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(3)
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A member of a committee, who has ceased to be a member
thereof on account of having incurred any disqualification other than
disqualifications referred to in sub-sections (1) and (2), shall, unless
otherwise specifically provided in this Act, be eligible to be re-nominated,
re-co-opted, re-appointed or re-elected as a member of the committee, as soon
as such disqualification ceases to exist.
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73-G.
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Provision for conduct of elections to committees and of
officers of certain societies and term of office of member of such
committees.- [* Was deleted By MAH. XXIV of 1961]
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(1)
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The election of the members of the committees and the
officers by the committees, of the societies of the categories mentioned
below, shall be subject to the provisions of Chapter XI-A and shall be
conducted in the manner laid down by or under that Chapter:—
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(i)
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such Apex societies, which the State Government may, by
general or special order published in Official Gazette, from time to time,
specify in this behalf, regard being had to the financial position and share
capital of such societies ;
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(ii)
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all District Central Co-operative Banks;
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(iii)
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all District Co-operative Agriculture and Rural
Multipurpose Development Banks;
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(iv)
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(a)
All District Co-operative
Sale and Purchase Organizations;
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(b)
All Taluka Co-operative
Sale and Purchase Organizations;
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(v)
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all Co-operative Sugar
Factories;
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(vi)
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all Co-operative Spinning
Mills;
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(vii)
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any other societies or
class of societies, which the State Government may, by general or special
order published in the Official Gazette from time to time, specify in this
behalf, regard being had to the financial position and share capital of such
societies or class of societies.
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(2)
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When the election of all
the members of the committee of any such society is held at the same time,
the members elected on the committee at such general election shall hold
office for period of five years from the date on which the first meeting is
held, unless the period is extended by the State Government, for reasons to
be recorded in writing, for a period not exceeding one year so however that
the total period does not exceed six years in the aggregate.
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(2A)
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The term of office of the
members who are appointed or nominated or co-opted or selected or elected on
the committee including to fill the vacancy shall be co-terminus with the
terms of office of the elected members under sub-section (1), notwithstanding
the date of their appointment, nomination, co-option, selection or election
including to fill the vacancy.
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(2B)
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Where, for any reason
whatsoever, the election of the members of the committee was not held or
could not be held before the expiry of the term or the extended term, as the
case may be, of the existing committee, the members including the officers of
the committee shall cease to hold office on the expiry of its term or
extended term, as the case may be, and they shall be deemed to have vacated
their offices:
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Provided that where the
Collector fails to hold election to the committee of any such society, the
term of office of the members of the committee of that society shall be
deemed to have been extended till the date immediately preceding the date of
the first meeting of the newly constituted committee.
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(3)
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Notwithstanding anything in the bye-laws of any such
society, only the committee of management shall be elected by a general body
of members of the society; and all other committees authorised by or under
the bye-laws may be constituted only by electing or appointing persons from
among the persons who are members of the committee of management, and all
such committees shall be sub-committees of the committee of management, and
shall be subordinate to it.
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(4-a)
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There shall be two professionals on the board of
directors of District Central Co-operative Bank and State Co-operative Bank
having qualification prescribed by the Reserve Bank of India or National
Bank.
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(b)
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The registrar
shall direct the bank concerned
to co-opt such professional on the board of directors within the time limit
specified in the direction by the Registrar. If the bank fails to comply with
the aforesaid directions, the Registrar himself shall appoint such
professional directors and such appointment shall be binding on the said
bank. The professional director shall have all the rights inclusive of voting
right.
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73-H.
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Responsibility of committee to hold election before
expiry of term.—[* Was deleted By MAH. XXIV of 1961]
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(1)
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It shall be the duty of the committee of every society
to arrange for holding the election of its members before the expiry of its
term.
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Provided that, in the case of co-operative credit
structure entity, the Registrar or administrator shall hold election within a
period of two months from the date of taking over the management of the
society.
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73-I.
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Responsibility of committee or the
Administrators or authorised officer to intimate and assist to arrange for
election, before expiry of term - [* Was inserted By
MAH. XXIV of 1961]
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(1)
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As provided
under sub-section (14) of section 73CB, it shall be the duty of the committee
to intimate to the State Co-operative Election Authority, for holding of its
election, before expiry of its term.
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(2)
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Where there is
a willful failure on the part of the committee to intimate to the State
Co-operative Election Authority as required under sub-section (1) for holding
of its election, and for any reason whatsoever, election of the members of
the committee could not be held before the expiry of its term then the
members thereof shall cease to hold their office and in such a situation the
Registrar shall take action as contemplated under section 77A.
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(3)
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On taking such
action under sub-section (2), the authorised officer so appointed shall
intimate to the State Co-operative Election Authority for holding of the
election with immediate effect and assist to make necessary arrangement for
holding such election within the period specified.
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74.
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(1)
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The qualifications for appointment of the Chief
Executive Officer, Finance Officer, Manager, Secretary, Accountant or any
other officer of a society or a class of societies and his emoluments and
perquisites shall be such as may be determined by the Registrar, from time to
time.
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(2)
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In the society or class of societies, as the State
Government may, from time to time, notify in the Official Gazette, there
shall be a Chief Executive Officer and a Finance Officer, who shall be
appointed by the society from a panel of persons selected by a body of such
persons not exceeding five as may be prescribed.
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Provided that, the qualification for appointment of the
Chief Executive Officer of the District Central Co-operative Bank and the
State Co-operative Bank shall be such as may be prescribed by the Reserve
Bank of India, from time to time. [* Was inserted By MAH. XXIV of 1961]
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(3)
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The Chief Executive Officer so appointed shall be
ex-officio member of the committee but he shall have no right to vote at the
meeting of the committee.
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75.
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(1)
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Every society, shall within a period of “Four months
after the close of the financial year, get its books of accounts audited and
within six months after the close of financial year to transact its business
as may be provided in this Act, call the annual general body meeting of its
members”: [* Was substituted By MAH. XXIV of 1961]
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Provided that, he Registrar may, by general or special
order, extend the period for holding such meeting for a further period not
exceeding three months however, in the case of the specified societies and
urban co-operative banks such extension shall be granted only after recording
the reasons in writing and after obtaining the previous approval of the
Government for granting such extension: [*
Was deleted By MAH. XXIV of 1961]
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Provided further that,
where such meeting is not called by the society, the Registrar or any authorised
by him may call such meeting in the manner prescribed, and that meeting shall
be deemed to be a general meeting duly called by the society, and the
Registrar may order that the expenditure incurred in calling such a meeting
shall be paid out of the funds of the society or by such person or persons
who, in the opinion of the Registrar, were responsible for the refusal or
failure to convene the general meeting. [* Was substituted By MAH. XXIV of 1961]
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(2)
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At every annual general meeting of a society, the
committee shall lay before the society, - [* Was
substituted By MAH. XXIV of 1961]
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(i)
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a statement showing the details of
the loans, if any, given to any of the members of the committee or any member
of the family of any committee member, including a society or firm or company
of which such member or members of his family is a member, partner or
director, as the case may be; the details of repayment of loan made during
the preceding year and the amount outstanding and overdue at the end of that
year;
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(ii)
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annual report
of its activities;
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(iii)
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plan for
disposal of surplus;
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(iv)
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list of
amendments of the by-laws of the society, if any;
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(v)
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declaration
regarding date and conduct of its election of its committee, when due;
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(vi)
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audit report
of the preceding financial year;
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(vii)
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rectification
report of earlier audit;
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(viii)
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annual budget
for next year;
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(ix)
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any other
information required by the Registrar in pursuance of any of the provisions
of the Act and rules; and
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(x)
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Such other
business will be transacted as may be laid down in the by-laws and of which
due notice has been given.
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Explanation
I.- For the purposes of this sub-section, the expression "family"
means a wife, husband, father, mother, brother, sister, son, daughter,
son-in-law or daughter-in-law;
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Explanation
II. - In the case of a society not carrying on business for profit, an
audited income and expenditure account shall be placed before the society at
the annual general body meeting instead of audited profit and loss account,
and all references to audited profit and loss account, and to
"profit" or "loss" in this Act, shall be construed in
relation to such society as references respectively to the "excess of
income over expenditure", and "excess of expenditure over
income.";
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(2A)
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Every society
shall, appoint an auditor or auditing firm from a panel approved by the State
Government in this behalf in its annual general body meeting having such
minimum qualifications and experience as laid down in section 81, for the
current financial year and shall also file in the form of return to the
Registrar, the name of the auditor appointed and his written consent for
auditing the accounts of the society within a period of thirty days from the
date of the annual general body meeting: [*
Was inserted By MAH. XXIV of 1961]
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Provided that,
the same auditor shall not be appointed for more than three consecutive years
by the annual general body meeting of the same society; [* Was inserted By MAH. XXIV of 1961]
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(3)
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There shall be attached to every balance sheet laid
before the society in general meeting, a report by its committee, with
respect to (a) the state of the society's affairs; (b) the amounts, if any,
which, it proposes to carry to any reserve either in such balance sheet, or
any specific balance sheet; and (c) the amounts, if any, which it recommends,
should be paid by way of dividend, bonus or honoraria to honorary workers.
The committee's report shall also deal with any changes, which have occurred during
the year for which the accounts are made up, in the nature of the society's
business. The committee's report shall be signed by its Chairman, or any
other member authorised to sign on behalf of the committee.
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(4)
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At every annual general
meeting the balance sheet, the profit and loss account the audit memorandum
submitted by the auditor appointed under section 81 and the committee's
report, shall be placed for adoption, and such other business will be
transacted as may be laid down in the bye-laws and of which due notice has
been given. [* Was substituted By MAH. XXIV of
1961]
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(5)
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If default is made, in calling a “general body meeting
within the period” [* Was substituted By MAH. XXIV of 1961] prescribed under sub-section (1), or in complying with “sub-section
(2), (2A),” [* Was substituted By MAH. XXIV of 1961] (3) or (4), the Registrar may by order, declare any
officer or member of the committee whose duty it was to call such a meeting
or comply “within sub-section (2), (2A),” [* Was
substituted By MAH. XXIV of 1961] (3)
or (4) and who without reasonable excuse failed to comply with any of the
aforesaid sub-sections disqualified for being elected and for being any
officer or member of the committee for such period “not exceeding five years”, [* Was substituted By MAH. XXIV of 1961] as he may specify in such an order and, if the officer
is a servant of the society, impose a penalty on him to pay an amount not
exceeding “five thousand rupees”. [* Was substituted By MAH. XXIV of 1961] Before making an order under this subsection, the
Registrar shall give, or cause to be given, a reasonable opportunity to the
person concerned of showing cause against the action proposed to be taken in
regard to him.
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(6)
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Any penalty imposed under sub-section (5) or under
section 76, may be recovered in the manner provided by the Code of Criminal
Procedure, 1973, for the recovery of fines imposed by a Magistrate, as if
such fine was imposed by the Magistrate himself.
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76.
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(1)
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A “special general
Body meeting” [* Was substituted By MAH. XXIV of 1961] may be called at any time by the Chairman or by a
majority of the committee and shall be called within one month-
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(i)
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on requisition in writing of one-fifth of the members
of the society or of members the number of which is specified in the bye-laws
for the purpose, whichever is lower, or
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(ii)
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at the instance of the Registrar, or
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(iii)
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in the case of a society, which is a member of a
federal society at the instance of the committee of such federal society
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(2)
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Where
any officer or a member of the committee, whose duty it was to call such
meeting without reasonable excuse, fails to call such meeting, the Registrar
may, by order declare such officer or member disqualified for being a member
of the committee for such period “not exceeding five years”, [* Was substituted By MAH. XXIV of 1961] as he may specify in such
order and if the officer is a servant of the society, he may impose on him a
penalty not exceeding “five thousand rupees”. [* Was substituted By MAH. XXIV of 1961] Before making an order under this
sub-section, the Registrar shall give, or cause to be given, a reasonable
opportunity to the person concerned of showing cause against the action
proposed to be taken in regard to him.
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(3)
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If a “special general body meeting” [* Was substituted By MAH. XXIV of 1961] of a society is not called in accordance with the
requisition referred to in sub-section (1), the Registrar or any person
authorised by him in this behalf, shall have power to call such meeting, and
that meeting shall be deemed to be a meeting duly called by the committee.
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(4)
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The Registrar shall have power to order that the
expenditure incurred in calling a meeting under sub-section (3) shall be paid
out of the funds of the society or by such person or persons who, in the
opinion of the Registrar, were responsible for the refusal or failure to
convene the meeting.
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77.
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(1)
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No act of a society or a committee or any officer, done
in good faith in pursuance of the business of the society shall be deemed to
be invalid by reason only of some defect subsequently discovered in the
organization of the society, or in the constitution of the committee, or in
the appointment or election of an officer, or on the ground that such officer
was disqualified for his office.
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(2)
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No act done in good faith by any person appointed under
this Act, the rules and the bye-laws shall be invalid merely by reason of the
fact that his appointment has been cancelled by or in consequence of any
order subsequently passed under this Act, rules and the bye-laws.
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(3)
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The Registrar shall decide whether any act was done in
good faith in pursuance of the business of the society; and his decision
thereon, shall be final.
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77-A.
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(1)
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Where the Registrar is satisfied that,—
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(1a)
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a provisional committee has failed to make necessary
arrangements for holding election for the constitution of the first
committee, before the expiry of its term as specified in sub-section (1A) of
section 73;
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(a)
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at the first constitution of the committee of any
society there is a failure to elect all or any of the members of the
committee;
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(b)
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the term “or extended term, as the case may be”, [* Was deleted By MAH. XXIV of 1961] of the committee of any society or of any of its
members has expired or for any other reason election is held and there is a
failure to elect all or any of the members required to fill the vacancies;
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(b-1)
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“There is a
stalemate in the constitution or committee has ceased to function and vacuum
is created in the management;”; [* Was inserted By MAH. XXIV of 1961]
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(c)
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any committee is prevented
from entering upon office;
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(d)
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a new committee has failed
to enter upon office on the date on which the term of office of the existing
committee expired; or
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(e)
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a new committee cannot for
any reason be constituted before the expiry of their term of the existing
committee; [*
Was deleted By MAH. XXIV of 1961]
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(f)
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where more than one group of persons in a society is
claiming to be elected as the committee members and proceedings in respect
thereof have been filed in the Co-operative Court;
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The Registrar may, either,
suo-motu or “on the application of any officer or member of the society”, [* Was substituted By MAH. XXIV of 1961]by order appoint-
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(i)
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any member or members of
the society to be the member or members of the committee to fill the
vacancies;
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(ii)
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A committee, consisting of not more than three members
of the society, or “one or more authorised officer” [* Was substituted By MAH. XXIV of 1961] who need not be
members of the society, to manage the affairs of the society till a new
committee enters upon office :
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Provided that, before making such order, the Registrar
shall publish a notice on the notice board at the head office of the society,
inviting objections and suggestions with respect to the proposed order within
a period specified in the notice and consider all objections and suggestions
received by him within that period;
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Provided further that, it shall not be necessary to
publish such notice in any case where Registrar is satisfied that immediate
action is required to be taken or that it is not reasonably practical to
publish such notice.
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“Provided also
that, if no member or members of the society are willing to work on such
committee, it shall be lawful for the Registrar, to appoint one or more
authorised officers, not being a member of the society, as he may deem fit,
to look after affairs of the society”;
[*
Was inserted By MAH. XXIV of 1961]
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(2)
|
The Committee or
“authorised Officers” [* Was substituted By MAH. XXIV of 1961] so appointed shall, subject
to the control of the Registrar and to such instructions as he may, from time
to time, give, have power to discharge all or any of the functions of the
committee or of any officer of the society and take all such actions as may
be required to be taken in the interests of the society.
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(3)
|
The Committee or “authorised officers” [* Was substituted By MAH. XXIV of 1961] so appointed shall hold office for a period of six
months from the date of assuming the management of the society and shall make
necessary arrangements for constituting a new committee within the said
period and for enabling the new Committee including any new Committee
referred to in sub-clause (f) of sub-section (1), which is determined by the
Court to have been legally elected, to enter upon office.
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Provided that, if a new committee is not, or cannot be
constituted at the expiry or termination of the term of office of the
committee or Administrator, for any reason beyond the control of the
committee or Administrator, the term of office of the committee or
Administrator, as the case may be, shall be deemed to be extended, until the
new committee is duly constituted. [* Was deleted By MAH. XXIV of 1961]
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“Provided that, in no circumstances
the term of office of the committee or authorised officer shall exceed six
months from the date of their holding office.”; [* Was
substituted By MAH. XXIV of 1961]
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(4)
|
The Registrar shall have the power to change the
committee or any or all members thereof or any or all the “authorised
officers” [* Was substituted By MAH. XXIV of 1961] appointed under sub-section (1) at his discretion even
before the expiry of the period specified in the order made under sub-section
(1).
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(5)
|
The provisions of sub-section (2A) of Section 78 shall
apply mutatis mutandis for fixation of remuneration to be paid to the members
or “authorised officers” [* Was substituted By MAH. XXIV of 1961] appointed under sub-section (1).
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78.
|
Power of suspension of
committee. - [* Was substituted By MAH. XXIV of 1961]
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(1)
|
If, in the opinion of the
Registrar, the committee makes a persistent default in performance of its
duties or is negligent in the performance of its duties or is otherwise not
discharging its functions properly and diligently, or there is a stalemate in
the constitution or functioning of the committee, occasioned by resignation,
disqualification of members of committee or otherwise, the Registrar, after giving
the committee an opportunity of showing cause, in writing, if any, within
fifteen days from the date of receipt of notice and after giving reasonable
opportunity of being heard and after consultation with the federal society to
which the society is affiliated, comes to a conclusion that the charges
mentioned in the notice prima facie exist, but are capable of being remedied
with, he may by order,-
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(i)
|
keep the
committee under suspension for such temporary period, not exceeding six
months as may be specified in the order; and
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(ii)
|
appoint an
administrator or committee of administrators consisting of three or more
members of the society otherwise than the members of the committee so
suspended in its place or appoint an administrator or committee of
administrators who need not be the members of the society, to manage the
affairs of society:
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Provided that,
nothing in this sub-section shall apply to a society, where there is no
Government shareholding or loan or financial assistance in terms of any cash
or kind or any guarantee by the Government :
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Provided
further that, in case of a society carrying on the business of banking, the
provisions of the Banking Regulation Act, 1949, (10 of 1949) shall also apply
:
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||
Provided also
that, in case of society carrying on the business of banking, the provisions
of this clause shall have effect as if for the words “six months” the words
“one year” had been substituted :
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||
Provided also that, the Registrar
shall have the power to change the committee or any member thereof or
Administrator appointed, at his discretion even before the expiry of the
period specified in the order made under this section:
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||
Provided also
that, such federal society shall communicate its opinion to the Registrar
within forty-five days from the date of receipt of communication, failing
which it shall be presumed that such federal society has no objection to the
order of suspension and the Registrar shall be at liberty to proceed further
to take action accordingly.
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(2)
|
The
administrator or committee of administrators, as the case may be, so
appointed under clause (ii) of sub-section (1), shall submit a report to the
Registrar within such period as may be specified in the order as to the
remedial measures taken and after going through the report or any other
material placed on record, if the Registrar is satisfied that the charges
mentioned in the notice are made good or remedied, he shall by order revoke,
the order of suspension and direct the administrator or the committee of
administrators to handover the management to the suspended committee with
immediate effect.
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(3)
|
When a notice
is issued against any committee or a member under sub-section (1), if
resignation from any office is tendered by the committee or a member, it
shall not be valid or effective until two months have elapsed from the date
of issue of the notice or until it is permitted to be accepted by the
Registrar, whichever is earlier.
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(4)
|
The
administrator or committee of administrators so appointed shall, subject to
the control of the Registrar and such instructions as he may from time to
time give, have power to exercise all or any of the functions of the committee
or of any officer of the society and take all such actions as may be required
in the interest of the society and shall arrange for conduct of the election,
through the State Co-operative Election Authority, within the period
specified and handover the management to the newly elected Committee in
accordance with the Act, rules and bye-laws of the society. The administrator
or committee of administrators so appointed as aforesaid, shall
notwithstanding anything contained in the bye-laws, have power to call a
special general body meeting of the society to review or reconsider the
decisions or the resolutions taken or passed at the general body meeting
called by the previous committee or to endorse the action taken by it.
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(5)
|
The conditions
of service of the administrator shall be fixed by the Registrar which shall
include the remuneration payable to him and expenses of management. Such
remuneration and expenses shall be payable out of the funds of the society
within such time and at such intervals as the Registrar may fix, and if such
remuneration or expenses are not paid within such time or at intervals, the
Registrar may direct the person having custody of the funds of the society to
pay to the administrator or committee of administrators such remuneration and
expenses in priority to any other payments, except land revenue, any arrears
of land revenue, or any sum recoverable from the society as arrears of land
revenue, and he shall, so far as the funds to the credit of the society
allow, comply with the orders of the Registrar.
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(6)
|
All acts done
or purported to be done by the administrator or committee of administrators
during the period the affairs of the society are carried on by the
administrator or committee of administrators appointed under sub-section (1)
shall be binding on the new committee.”
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78-A.
|
Power of supersession of committee or
removal of member thereof –
|
|
(1)
|
If in the
opinion of the Registrar, the committee or any member of such committee has
committed any act, which is prejudicial to the interest of the society or its
members or if the State Co-operative Election Authority has failed to conduct
the elections in accordance with the provisions of this Act or where
situation has arisen in which the committee or any member of such committee
refuses or has ceased to discharge its or his functions and the business of
the society has, or is likely to, come to a stand-still, or if serious
financial irregularities or frauds have been identified or if there are
judicial directives to this effect or, if there is a perpetual lack of quorum
or, where in the opinion of the Registrar the grounds mentioned in
sub-section (1) of section 78 are not remedied or not complied with, or where
any member of such committee stands disqualified by or under this Act for being
a member of the committee, the Registrar may, after giving the committee or
the member, as the case may be, an opportunity of stating its or his
objections in writing as provided under sub-section (1) of section 78 and
after giving a reasonable opportunity of being heard, and after consultation
with the federal society to which the society is affiliated comes to a
conclusion that the charges mentioned in the notice are proved, and the
administration of the society cannot be carried out in accordance with the
provisions of this Act, rules and by-laws, he may by order stating reasons
therefor,-
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(a) (i)
|
supersede the
committee; and
|
|
(ii)
|
appoint a
committee consisting of three or more members of the society otherwise than
the members of the committee so superseded, in its place, or appoint an
administrator or committee of administrators who need not be the members of
the society, to manage the affairs of society for a period not exceeding six
months:
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|
Provided that,
the Registrar shall have the power to change the committee or any member
thereof or administrator or administrators appointed at his discretion even
before the expiry of the period specified in the order made under this
sub-section :
|
||
Provided
further that, such federal society shall communicate its opinion to the
Registrar within forty-five days, from the date of receipt of communication,
failing which it shall be presumed that such federal society has no objection
to the order of supersession or removed of a member and the Registrar shall
be at liberty to proceed further to take action accordingly :
|
||
Provided also
that, in case of a society carrying on the business of banking, the
provisions of the Banking Regulation Act, 1949, shall also apply and the
committee shall not be superseded for a period exceeding one year :
|
||
Provided also
that, nothing in this sub-section shall apply to a society, where there is no
Government shareholding or loan or financial assistance in terms of any cash
or kind or any guarantee by the Government ;
|
||
(b)
|
remove the
member :
|
|
Provided that,
the member who has been so removed shall not be eligible to be re-elected,
re-co-opted or re-nominated as a member of any committee of any society till
the expiry of period of next one term of the committee from the date on which
he has been so removed :
|
||
Provided
further that, in case of a society carrying on the business of banking, the
provisions of the Banking Regulation Act, 1949, shall also apply.
|
||
(2)
|
The provisions
of sub-sections (3), (4), (5) and (6) of section 78 shall apply mutatis
mutandis, in relation to supersession or removal under this section."
|
|
79.
|
Societies obligation to
file returns and statements and Registrar’s power to enforce performance of
such obligations - [* Was substituted By MAH. XXIV of 1961]
|
|
(1)
|
The Registrar may direct any society or class of
societies, to keep proper “in such form, including electronic or any other
form, as may be prescribed” [* Was
substituted By MAH. XXIV of 1961] with respect to all sums of money
received and expended by the society, and the matters in respect of which the
receipt of which the receipt & expenditure take place all sales and
purchases of goods by the society, and the assets and liabilities of the
society, and to furnish such statements and returns and to produce such
records as he may require from time to time; and the officer or officers of
the society shall be bound to comply with his order within the period
specified therein.
|
|
(1A)
|
Every society shall file returns
within six months of the close of every financial year to which such accounts
relate, to the Registrar or to the person authorised by him. The returns
shall contain the following matters, namely: - [* Was inserted By MAH. XXIV of 1961]
|
|
(a)
|
Annual report
of its activities; [* Was inserted By MAH. XXIV of 1961]
|
|
(b)
|
Its audited
statement of accounts; [* Was inserted By MAH. XXIV of 1961]
|
|
(c)
|
Plans for
disposal of surplus funds as approved by the general body of the society; [* Was inserted By MAH.
XXIV of 1961]
|
|
(d)
|
List of
amendments to the by-laws of the society, if any; [* Was inserted By MAH. XXIV of 1961]
|
|
(e)
|
Declaration
regarding date of holding of its general body meeting and conduct of
elections when due; [* Was inserted By MAH. XXIV of 1961]
|
|
(f)
|
Any other
information required by the Registrar in pursuance of any of the provisions
of this Act. [*
Was inserted By MAH. XXIV of 1961]
|
|
(1B)
|
Every society
shall also file a return regarding the name of the auditor or auditing firm
from a panel approved by a State Government in this behalf, appointed in the
general body meeting together with his written consent, within a period of
one month from the date of annual general body meeting.”; [* Was inserted By MAH.
XXIV of 1961]
|
|
79-A.
|
||
(1)
|
If the State Government, on receipt of a report from
the Registrar or otherwise, it satisfied that in the public interest or for
the purposes of securing proper implementation of co-operative production and
other development programs approved or undertaken by Government, or to secure
the proper management of the business of the society generally, or for
preventing the affairs of the society being conducted in a manner detrimental
to the interests of the members, or of the depositors or the creditors
thereof, it is necessary to issue directions to any class of societies
generally or to any society or societies in particular, the State Government
may issue directions to them from time to time, and all societies or the
societies concerned, as the case may be, shall be bound to comply with such
directions.
|
|
(2)
|
The State Government may
modify or cancel any directions issued under sub-section (1), and in
modifying or canceling such directions may impose such conditions as it may
deem fit.
|
|
(3)
|
Where the Registrar is
satisfied that any person was responsible for complying with any directions
or modified directions issued to a society under sub-sections (1) and (2) and
he has failed without any good reason or justification, to comply with the
directions, the Registrar may by order —
|
|
(a)
|
if the person is a member
of the committee of the society, “declare him to be disqualified to be or to
continue to be a member of the committee of any society” [* Was substituted By MAH. XXIV of 1961] for a period of six
years from the date of the order,
|
|
(b)
|
if the person is an employee of the society, direct the
committee to remove such person from employment of the society forthwith, and
if any member or members of the committee, without any good reason or
justification, fail to comply with this order, “remove the members, appoint
other persons as members and” [* Was
deleted By MAH. XXIV of 1961] declare them disqualified as provided in
clause (a) above:
|
|
Provided that, before making any order under this
sub-section, the Registrar shall give a reasonable opportunity of being heard
to the person or person concerned and consults the federal society to which
the society affiliated.
|
||
“Provided further that, such
federal society shall communicate its opinion to the Registrar within a
period of forty-five days from the date of receipt of communication, failing
which it shall be presumed that such federal society has no objection to take
action under this section and the Registrar shall be at liberty to proceed
further to take action accordingly.” [* Was inserted By MAH. XXIV of 1961]
|
||
Any order made by the Registrar under this section
shall be final.
|
||
79-AA.
|
||
(1)
|
If the Registrar or an
officer not below the rank of District Deputy Registrar is of the opinion
that having regard to the financial condition of the society and financial
interest of Government therein, it is necessary to regulate the manner of
carrying on its trade or business, he may, subject to any rules made in this
behalf, direct such society to make regulations in that behalf and forward
them to him for approval.
|
|
(2)
|
On receipt of the
regulations made by the society, the Registrar or such officer may approve
them with or without modifications. On approval of such regulations, the
society shall carry on its business in accordance with such regulations.
|
|
(3)
|
If any society fails to
forward such regulations to the Registrar or such officer when directed by
him under sub-section (1) within a period of three months from the date on
which the direction is given, the Registrar or such officer shall himself
make or cause to be made such regulations and require the society to carry on
its business in accordance with such regulations and thereupon the society
shall be bound to comply with such requirement.
|
|
79-B.
|
Registrar's
power to remove member for failure to supply his agricultural produce to
processing society.—[* Was
deleted By MAH. XXIV of 1961]
|
|
(1)
|
Where any producer-member of a processing society fails
to supply his agricultural produce to the society in accordance with the
provisions of the bye-laws of the society, the Registrar may, on the
complaint made by the society or suo motto, issue a notice to the member to
show cause, within a period specified in the notice, why for such failure he
should not be removed from the membership of the society.
|
|
(2)
|
After holding such inquiry as he thinks fit and giving
a reasonable opportunity of being heard to the member, if the Registrar is
satisfied that the member has failed, without any good reason or
justification; to supply his agricultural produce to the society in
accordance with the provisions of the bye-laws, the Registrar may by order
remove the person concerned as a member of the society with effect from such
date as may be specified in the order, and thereupon the person shall cease
to be a member of the society on and from that date. Any order made by the
Registrar under this section shall be final.
|
|
80.
|
||
(1)
|
Where the Registrar is
satisfied that the books and records of a society are likely to be
suppressed, tampered with or destroyed, or the funds and property of a
society are likely to be misappropriated or misapplied, the Registrar or the
person authorised by him may apply to the Executive Magistrate within whose
jurisdiction the society is functioning for seizing and taking possession of
the records and property of the society.
|
|
(2)
|
On receipt of an
application under sub-section (1) the Magistrate shall forthwith consider
such application and, if satisfied that immediate action is required, shall
authorize any police officer, not below the rank of a sub-inspector, to enter
and search any place where the records and property are kept or likely to be
kept, and to seize them and hand over possession thereof to the Registrar or
the person authorised by him, as the case may be.
|
|
(3)
|
Where the Registrar or an officer not below the rank of
District Deputy Registrar (hereinafter referred to in this section as
"the said officer") is satisfied that immediate action is required
to be taken or that the Executive Magistrate having jurisdiction is not
likely to be available at the head quarters for a consecutive period of three
days or the books and records of a co-operative society are in the immediate
danger of being tampered with or funds and property of a society are in the
immediate danger of being misappropriated or misapplied, the Registrar or the
said officer may, notwithstanding anything contained in subsections (1) and
(2), make an order to seize such books, records or funds of the society
either himself or through an officer authorised by him in this behalf, and
for that purpose the Registrar or the said officer or the officer so
authorised may after reasonable notice at any reasonable time enter and
search without warrant any premises where he believes such books, records or
funds to be and inspect and seize such books, records or funds, and the
officer or officers of the society responsible for the custody of such books,
records and funds shall deliver such books, records or funds forthwith to the
Registrar, the said officer or the officer so authorised, who shall
acknowledge receipt of the books, records or funds of the society so seized.
The Registrar, the said officer or the officer so authorised, may, for the
purpose of execution of the said order, request the officer in-charge of the
nearest police station to give him necessary assistance and such police
officer shall thereupon give him such assistance.
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