Amendment status not verified — confirm the current text below against the official source.
Corrupt practices.- (1) The following shall be deemed to be corrupt practices for the purposes of this Act- (i) receipt or sanction of a benami loan; (ii) receipt of illegitimate gratification in cash or in kind in the course of dealings on behalf of the society; (iii) signing of the minutes of the committee meeting without attending the meeting; and (iv) misuse of any money of the society. (2) A person found guilty of any corrupt practice shall be punishable with fine which may extend to five hundred rupees or imprisonment for not more than one year or both. (3) A person convicted under sub-section (2) shall be disqualified to hold office in any society for a period of six years from the date of such conviction. (4) If any person collecting the share money for a society-in-formation does not deposit the same in the financing bank, a Postal Savings Bank or in any other bank approved by the Registrar within 14 days of its receipt, he shall be punishable with fine which may extend to five hundred rupees. (5) If any person collecting the share money for a society-in-formation makes use of the funds so raised for conducting any trade or business in the name of the society to be registered or otherwise, he shall be punishable with fine which may extend to five hundred rupees. (6) The provisions of this section shall be without prejudice to any action that may be taken against the offenders under any other law for the time being in force.