Amendment status not verified — confirm the current text below against the official source.
A loan granted by a Co-operative society to a member thereof shall be utilised by such member for the purpose for which it was granted. If the Co-operative society is of opinion that the loan has not been utilised for the purpose for which it was granted, it may direct such member in the prescribed manner to refund the entire amount of the loan, and the amount shall be refundable forthwith.