Amendment status not verified — confirm the current text below against the official source.
Charge and Surcharge.—(1) Where, as the result of an audit under sec tion 55. or an enquiry under section 60 or an inspection under section 61 or a report made in the course of the winding up of a registered society, it appears to the Registrar that any member, officer or employee past or present, of the society has at any time within a period of four years prior to the date of such audit, inspection, inquiry or report, as the case may be- (a) intentionally, whether individually or as an assenting member of any Managing or other controlling body, made or authorized any payment or granted any loan which is contrary to the provision of this Act or to the rules or bye laws or failed to take timely steps to recover any loan at the due date or if it was; being improperly utilised: or (b) was grosslly negligent in respect of any loss or deficiency ; or (c) failed to bring into account any sum which ought to have been brought into account; or (d) misappropriated or fraudulently retained any property of the society ; or (e) committed breach of trust in relation to the society; the Registrar may inquire into the conduct of such officer or member of the managing or other controlling body. (2) The Registrar may similarly inquire into the conduct relating to the affairs of the society of any member, officer or employee, past or present, of a registered society on the application of the present controlling or managing body of the society, or liquidator, or any creditor, or any other registered society to which the society is affiliated or any contributory. (3) Upon such enquiry, after giving such member, officer or employee an opportunity of being heard and, in the case of a payment made contrary to the | provisions of this Act or rule or bye-laws, after affording such member, officer or employee time to recover the amount of such payment from the payee and . credit it to the funds of the society, the Registrar may by an order in writing J require such member, officer or employee to pay such sum with interest at such i rate as the Registrar may direct, to the society by way of compensation in respect j 291 of such payment or los> or to restore such property as the Registrar thinks lit. anti to pay such sum as .he Registrar may' lix to meet the cosi of the proceedings under this section. (4) Any award made by the Registrar under sub-section (3) shall be reduced to the form of a Co-operative demand certificate, by the officer authorised to issue such certificates. (5) fliis section shall apply notwithstanding that such member, officer or em ployee may by his act or omission nave incurred in addition criminal liability under this Act ot tiny other law for the time being in force. (6) An appeal snarl lie io the [State]1 Government against an order passed tinder sub-clause (J) (a) within thirty days of the communication of the order. Cl-iAPTER Xllf Penalty