Amendment status not verified — confirm the current text below against the official source.
(1) On the election of a new committee of a society or on the removal of the committee or any member thereof under section 74 or when the society is ordered to be wound up under section 105 the outgoing members of the committee and any paid servant or servants authorised by the committee in this behalf shall hand over charge of the records and properties of the society to the new committee or the administrators or the committee appointed under section 74 or the Liquidator as the case may be. (2) If the outgoing members of the committee and the paid servant or servants authorised by the committee in this behalf do not hand over, or in any manner obstruct the taking over charge of the records and properties of the society by the new committee or the administrator or administrators or the committee so appointed or the Liquidator, then without prejudice to any other action, the new committee or the administrator or administrators or the committee so appointed or the Liquidator may apply to the magistrate within whose jurisdiction the society functions for securing the records and properties of the society. On receipt of the application, the magistrate may, by a warrant authorise any police officer not below the rank of sub-inspector to enter and search any place where the records and properties are kept or are believed to be kept and to seize such records and properties; and the records and properties so seized shall be handed over to the new committee or the administrator or administrators or the committee so appointed or the Liquidator, as the case may be. (3) The action taken in respect of securing possession of records and properties against the outgoing members of the committee and the paid servant or servants authorised by the committee in this behalf in the manner as provided in sub-section (2) shall not be subjected to any challenge in the court of law. 78.(1) Where the Government has subscribed to the share capital of a society or the Government has guaranteed the repayment of the Principal of and payment of interest on debentures issued or loans raised by a society, the Government shall have the right to nominated (not more than three) representative on the committee of such society, in such manner as may be determined by the Government from time to time. The members so nominated shall hold office during the pleasure of the Government or for such period as may be specified in the order by which they are appointed. “(2) Notwithstanding anything contained in sub-section (1), there shall be only one nominee of the State Government in the committee of the State Cooperative Bank, and the cooperative land development bank if the State Government has subscribed to its share capital. (3) Notwithstanding anything contained in sub-section (1), there shall be no nominee of Government in the committee of a primary agriculture credit society irrespective of Government’s subscription to the share capital.”*1 Power to appoint Government nominee 45 CHAPTER VIII AUDIT, INQUIRY, INSPECTION AND SUSPENSION 79(1)(i) The Registrar shall audit, or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every society at least once in each year. “(ii) A primary agricultural credit society shall get its accounts audited at least once in each year by the Registrar or the person authorized by him or a Chartered Accountant appointed by the committee. (iii) Notwithstanding anything contained in clause (1), of this sub-section, the accounts of the State Co-operative Bank shall be audited and certified by Chartered Accountants appointed by its committee from the panel approved by the National Bank. (iv) The Registrar shall get conducted a special audit of the State Co-operative Bank on the request of the Reserve Bank in the manner and form stipulated by the Reserve Bank and shall endorse a copy of the report of such special audit to the Reserve Bank and National Bank within the time stipulated by the Reserve Bank”*2 ---------------------------------------------------------------------------------------------------------------- *1 Subsection 2 and 3 inserted by TCS (Second Amendment) Act 2009. *2 Sub clause (ii) to (iv) inserted by TCS (Second Amendment) Act 2009. (2) The audit under the foregoing sub-section shall include an examination of overdue debts, if any, the verification of the cash balance and the securities, a valuation of the assets and liabilities of the society, examination of all transactions of the society, the statement of accounts prepared by the committee and other particulars as may be prescribed. (3) The Registrar or the person authorized“by him under clause (i) of sub-section (1) or the auditor or the chartered accountant appointed by the committee of a co-operative credit structure society under clause (i) or (ii) of sub-section (1) to audit the accounts of a co-operative society.”*1 shall, for the purpose of audit, at times have access to all the books, accounts, documents, papers, securites,cash and other properties belonging to, or in the custody of, the society, and may summon any person in possession or responsible for the custody of any such Audit 46 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 being, an officer or employee of the society, and every member and past member of the society, shall furnish such information in regard to the transactions and working of the society as the Registrar, or the person authorised by him, “under clause (i) of sub-section (1) or the auditor or the chartered accountant appointed by the committee of a cooperative credit structure society under clause (ii) or (iii) to audit the accounts of a co-operative society.”*2 may require. (5) The auditor appointed under“Clause (i)of sub-section (1)or the auditor or the chartered accountant appointed by the committee of a co-operative credit structure society under clause (ii) or of subsection (1) to audit the accounts of a co-operative society.”*3 shall have the right to receive all notices, and every communication relating to the annual general meeting of the society and to attend such meeting and to be heard thereat, in respect of any part of the business with which he is concerned as auditor. --------------------------------------------------------------------------------------------------------------- *1, *2 ,*3 these words are added by TCS (Second Amendment) Act 2009. (6) If it appears to the Registrar, on an application by a society of otherwise, that it is necessary or expedient to re-audit any accounts of the society, the Registrar may, by order, provide for such re-audit and the provisions of this Act applicable to audit of accounts of the society shall apply to such re-audit. (7) For auditing the accounts of a society under this section the society“other than a co- operative credit structure society.”*1 shall be liable to pay audit fee as such scale as may be prescribed; Provided that the Registrar may remit the whole or any part of the fee payable for audit by any society or class of societies for any co-operative year. (8) The statement of accounts audited together with modifications, if any, made therein by the Registrar, shall be final and binding upon to society. 47 (9) “If at the time of the audit, the accounts of a society are not found to be complete, the Registrar or the person authorized by him under clause (i) of sub-section (1) to audit or the auditor or the chartered accountant appointed by the committee of a co-operative credit structure society under clause (ii) or (iii) of sub-section (1),may cause the account to be written up at the expense of the society.” Explanation: - For the purpose of this section audit shall include annual or periodical audit, running or continuous audit, test audit or super audit and re-audit.”*2