Amendment status not verified — confirm the current text below against the official source.
Writing off of Bad Debts and Losses: - (1) All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts by the auditor under section 48, shall first be written off against the bad debts fund if any and the balance, if any, may be written off against the reserve fund and the share capital of the co-operative society. (2) All other dues and accumulated losses or any other loss sustained by the co-operative society which cannot be recovered and has been certified as irrecoverable by the auditor may be written off against the reserve fund and the share capital of the co-operative society Provided that- (1) No bad debts or losses shall be written off without the sanction of the general body; (2) before any such bad debts or losses is so written off, the co-operative society, if it is affiliated to Central or Apex bank shall first obtain approval of that bank in writing and also the approval of the Registrar. If the co-operative society is affiliated but not indebted to the central or apex bank and in all other cases it shall obtain the approval of the Registrar in writing. If the co-operative society is an apex bank, approval of the Registrar shall first be obtained: Provided that in case of co-operative societies classified as ‘A’ or ‘B’ at the time of last audit, no such permission need be taken, if the bad debts are to be written off against the bad debt fund especially created for the purpose. Provided further, that the Registrar may, while giving his approval, impose such conditions as to the recoupment of the bad debt fund and restoration of part or whole of the amount written off against the reserve fund, out of future profits as he deem fit.