Amendment status not verified — confirm the current text below against the official source.
Special provision for insured co-operative banks:- ****[Save as provided in section 34 of this Act], in the case of an insured co-operative bank, – (i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or re-organisation) of the bank may be made only with the previous sanction in writing of the Reserve Bank of India; (ii) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in section 13-D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961; (iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made by the Registrar for the removal of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefore such period or periods, not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank of India, and the administrator so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new committee; (iv) no appeal, revision or review shall lie or be permissible against an order referred to in clause (i), (ii) or (iii) made with the previous sanction in writing or on the requisition of the Reserve Bank of India and such order or sanction shall not be liable to be called in question in any manner; (v) the liquidator or the insured co-operative bank or transferee bank, as the case may be, shall be under an obligation to repay the amount to the Deposit Insurance and Credit Guarantee Corporation established under the Deposit Insurance and Credit Guarantee Corporation Act, 1961 in the circumstances to the extent and in the manner referred to in section 21 of that Act. Explanation:- (i) For the purpose of this section ―a co-operative bank‖ means a bank as has been defined in the Deposit Insurance and Credit Guarantee Corporation Act, 1961; (ii) ―insured co-operative bank‖ means a society which is an insured bank under the provisions of the Deposit Insurance and Credit Guarantee Corporation Act, 1961; (iii) ―transferee bank‖ in relation to an insured co-operative bank means a co-operative bank (which is a society under this Act), (a) with which such insured co-operative bank is amalgamated; or (b) to which the assets and liabilities of such insured co-operative bank are transferred; or (c) into which such insured co-operative bank is divided or converted under the provisions of *** Section 92 – Sub Section (2) substituted by Act No. 14 of 1986. * ** Section 93 – Word ―Central‖ omitted by Act No. 14 of 1986. * *** Section 94 – word ―Save ….. this Act‖ substituted by Act No. 20 of 1997. 35 sections 13 and 14 of this Act; (iv) ―Reserve Bank‖ means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934(2 of 1934); and (v) ―Corporation‖ means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961. CHAPTER XIV AUDIT, INQUIRY, INSPECTION AND SURCHARGE *95. Audit*:- (1) The Government or an authority authorised by the Government shall prescribe the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing accounts of co-operative societies, approve the panel of auditing firms and shall also fix their remuneration. (2) Every co-operative society shall get its accounts audited from auditors or empanelled auditing firms at least once in a year, within six months of close of year as per the guidelines issued by the Registrar. In case of failure to do so, the Registrar shall get the accounts audited at the expense of the society. (3) A person shall not be qualified for appointment as auditing firm of a society, if the proprietor, partner or Director of such firm is,- (a) an officer or a member or employee of that co-operative society; or (b) indebted to that co-operative society ;or (c) who has given any guarantee or provided any security in connection with the indebtedness of any third person to that co-operative society for an amount exceeding five thousand rupees. (4) If an auditing firm after its appointment becomes subject to any of the disqualifications specified in sub-section (3), it shall be deemed to have vacated its office as such. (5) The audit under sub-section (1) shall include valuation of assets and liabilities, an examination of balance sheet, profit and loss account and overdue debts, if any, the verification of the cash balance and securities and observance of provisions of this Act, rules, bye-laws made thereunder and various other laws applicable to the working of co-operative society. (6) The person auditing the accounts of a co-operative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities. (7) The members of the committee, manager, administrator or any officer, employee and agent of the society shall furnish to the person auditing the accounts of a co-operative society all such information as to its transactions and working, as required. (8) The Registrar or the person authorized by him under sub-section (2) to audit the accounts of a society, shall have power where necessary,– (a) to summon at the time of its audit any officer, agent, servant, member of the society, past or present, or any other person who he has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and (b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to the society, by officer, agent, servant or member in the possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit to take these into custody. (9) If, at the time of audit, the accounts of a society are not complete, the Registrar or the person authorized by him, may cause the accounts of such society to be written and maintained in accordance with accounting procedure in this regard, at the expense of the society. (10) Where the accounts have been caused to be written and maintained under sub-section (9), the Registrar may after giving such society an opportunity of being heard, make an order requiring the * Section 95 – Clause 1 to 14 substituted by Act No. 10 of 2013. 36 society to pay such costs and compensation, as determined by him. (11) Audit report of apex societies whose annual turnover is more than one thousand crore rupees shall be laid before the State Legislature. (12) The Registrar may order for test check of societies audited by the auditing firms in the manner, as may be prescribed. (13) The Registrar shall get conducted a special audit of Co-operative Credit Structure other than Primary Agriculture Co-operative Societies on the request of the Reserve Bank and shall endorse a copy of the report of such special audit to the Reserve Bank and National Bank. (14) Audit fee, if any, due from any co-operative society shall be recoverable in the same manner as provided in section 104.‖.