Amendment status not verified — confirm the current text below against the official source.
Audit and audit-fee.-(1) Every society shall get the accounts audited once at least every year by the person authorized by the Registrar in writing, by general or special order in this behalf, and shall pay the audit fee as may be prescribed: Provided that- (i) the State Government may, by notification, for reasons to be specified therein, exempt any class of societies; (ii) the Registrar may, for reasons to be recorded in writing, exempt any society from the payment of audit fees or part thereof, under this sub- section: Provided further that a Central Society or an Apex Society or an Urban Co-operative Bank may get the accounts audited by a Chartered Accountant approved by the Registrar: Provided further that Co-operative Bank may get the accounts audited by a Chartered Accountant approved by the National Bank, and the audit fees shall be paid by the Bank as may be determined by them: Provided further that the Primary Agriculture Credit Co-operative Society shall have option to get the accounts audited by the Chartered Accountant or the Registrar: Provided also that after the completion or issuance of the audit report, the Registrar has reason to believe or the Reserve Bank has instructed that the accounts be audited again or if there is complaint of financial irregularities or embezzlement, he may order special audit for the purpose. (2) The audit under sub-section (1) shall include an examination of the accounts and the overdue debts, if any compliance of the instructions and orders of the Registrar issued under this Act, Rules made thereunder and Byelaws of the society, the verification of cash balance and securities and valuation of the assets and liabilities of the societies and such other items as may be specified by the Registrar. (3) The Registrar or the authorized person shall at all times have access to all the books, accounts, documents, papers, securities, cash and other properties belonging to, or in the custody of, the society and may summon any person in possession of, or responsible for, the custody of any such books, accounts, documents, papers, securities, cash or other properties, to produce the same at any place at the headquarters of the society or any branch thereof. (4) Every person who is, or has at any time been, an officer or employee of the society, and every member and past member of a society shall furnish such information in regard to the transactions and working of the society as the Registrar or the person authorized by him may, require. 58-A. Audit Board.-For the purpose of conducting audit and supervision of any society or class of societies, the State Government may constitute an Audit Board which may exercise such powers of the Registrar as the State 53 Government may, by notification specify in this behalf and the Audit Board shall exercise these powers to the exclusion of the Registrar. 58-B. Procedure for making good, losses caused to a society.-(1)If in the course of an audit, inquiry, inspection or the winding up of a society or otherwise, it is found that any person, who is or was entrusted with organization or management of such society or any deceased, past or present chairman, secretary, member of Board of Directors, officer or employee of the society has made any payment contrary to the provisions of this Act or the rules made thereunder or byelaws of a society or has caused any deficiency or loss by gross negligence or misconduct or has misappropriated or fraudulently retained any money or other property belonging to such society, the Registrar may on his own motion or on the application of the Board of Directors, liquidator or any creditor may make an order requiring such person or in the case of a deceased person, his legal representative who inherits his estate, 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 : Provided that no order under this sub-section shall be made unless the person concerned is given a reasonable opportunity of being heard in the matters. Provided further that the liability of a legal representative of the deceased shall be to the extent of the property of the deceased, which has come to the hands of such legal representative. (2) Any person aggrieved by the order made under sub-section (1), may within thirty days from the date of communication of the order to him, appeal to the Tribunal: Provided that in computing the period of limitation, the time requisite for obtaining a copy of the order appealed against shall be excluded. (3) Any order made under sub-section (1) or sub-section (2) shall be enforced in accordance with the provisions of Section 85. (4) In the Registrar is satisfied on affidavit, enquiry or otherwise that any person with intent to delay or obstruct the enforcement of any order that may be made against him under this Section- (a) is about to dispose of the whole or any part of his property; or (b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar, he may, unless adequate security is furnished, direct the conditional attachment of the said property or such part thereof as he thinks necessary.