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 Section 76 or an inquiry under Section 82 or an inspection under Section 83 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 pass 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 members of any managing or others controlling body made or authorized any payment or granted any loan which is contrary to the provision of the Act or to the Rules or Bye-Laws or failed to take timely steps to recover any loan at the due date or it was being improperly utilized; or (b) was grossly negligent in respect of any loss or deficiency; (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 members of the managing or other controlling body. 625 (2) The Registrar may similarly inquire into the conduct relating to the affairs of the society or of any member, officer or employees, 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 is affiliated or any contributory. (3) Upon such inquiry given such member, officer or employee an opportunity of being heard and in the case of payment made contrary to the provision of this Act or Rules 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, if such member, officer of employee fails to recover the amount then 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 the society by way of compensation in respect of such payment or loss 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 proceeding 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 be his act or omission have incurred in addition to criminal liability under this Act or any other law for the time being in force. CHAPTER-X PENALTY