Amendment status not verified — confirm the current text below against the official source.
(1). Where, as the result of an audit under section 55, or an inquiry under section 61 or an inspection under section 62 or a report made in the course of the winding up a registered cooperative society, it appears to the Registrar that any member, officer or employee, past or present, of the co-operative society has at anytime within a period of four years prior to the date of such audit, inspection, enquiry or report as the case may be- (a) intentionally, whether individually or an assenting member of any management or other controlling body, made or authorized any payment or granted any loan which is contrary to the provision of this Act, the rules or bye-laws or has failed to take timely steps to recover any loan at the due date or if it was utilized improperly ; or (b) was grossly negligent in respect of any loss or deficiency; or (c) failed to bring into accounts any sum which ought to have been brought into account; or (d) misappropriated or fraudulently retained any property of the co-operative society; or (e) � committed breach of trust in relation to the co-operative 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 co-operative society or any member, officer or employee, past or present of a registered co-operative society on the application of the present controlling or managing body of the society, or liquidator, or any creditor or any other registered cooperative society to which the co-operative society is affiliated or any contributory is involved. (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 co-operative society, the Registrar may by an order in writing require such member, officer or employee to pay such sum with interest at such rate as the Registrar may direct, to the co operative society by way of compensation in respect of such payment or less or to restore such property as the Registrar thinks fit, and to pay such sum as the Registrar may fix to meet the cost 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 authorized to issue such certificates. (5) This section shall apply notwithstanding that such member, officer or employee may by his act or omission have incurred in addition criminal liability under this Act or any other law for the time being in force. (6) An appeal shall lie to the State Government against an order passed under clause (a) of sub-section (1) within thirty days of the communication of the order.