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MAHARASHTRA CO‐OPERATIVE SOCIETIES ACT, 1960.

… SOME OF THE POWERS OF THE REGISTRAR …..
Sr.No. Detailed of Powers Section

1 sahkarI saMsqaaMcaI naaoMdNaI klama 9

2 vya@tI XaotkrI Aaho ikMvaa naahI vaa saMsqaocyaa kaya-xao~at rahtao ikMvaa ksao ho klama 11
zrivaNao.
3 sahkarI saMsqaa vagaI-krNa klama 12
4 sahkarI saMsqaa paoTinayama naaodNaI va paoTinayama duÉstI naaoMdNaI klama 13
5 paoTinayama duÉstI inado-Xa klama 14
6 saMsqaocyaa naavaatIla badlaacaI naaoMd rijasTr GaoNao klama 15
7 laoakihtasaazI inado-Xa doNao ¸ ivaBaajana yaasa prvaanagaI doNao klama 18
8 sahkarI baÐkaMcao eki~krNa krNao. klama 18 Ao
9 P`aaqaimak ÌiYa ptsaMsqaa eki~krNa krNao. klama 18 baI
10 sahkarI saMsqaaMcaI puna-rcanaa kaya-xao~atIla badlaamauLo krNao. klama 18 saI
11 sahkarI saMsqaaMcaI puna-rcanaa krNao. klama 19
12 sahkarI saMsqaaMcaI naaoMdNaI r_ krNao . klama 21
13 sahkarI saMsqaa saBaasad%vaacao ApIla caalavaNao. klama 23 ³2´
14 sahkarI saMsqaaMmaqaIla saBaasad r_ kolyaacyaa zravaasa maanyata doNao. klama 35³1´
15 saMsqaocyaa kja- ]BaarNaIsa AavaSyak%yaa ATI GaalaNao. klama 43
16 saMsqaocaI kja- doNao QaaorNao zrivaNao. klama 44
17 saMsqaocaI doNao pgaaratUna kapNaosa ksaUr kolyaaba_la jabaabadar vya@tIcyaa klama 49³baI ´
ivaraoQaat vasaulaI daKlaa doNao.
18 saMsqaocaa inaQaI saMsqaocyaa pdaiQaka–yaaMnaI svatÁcyaa kosa kirta vaaprlyaasa klama 71 – Ao
vasaulaI P`amaaNap~ doNao.
19 saMsqaocyaa vyavasqaapna saimatIvar inavaDUna Aalaolyaa sadsyaaMcaI naavao jaahIr krNao. klama 73
20 AivaSvaasaacyaa zravaamaQyao saMsqaocyaa vyavasqaapna saimatIcaI saBaa baaolaaivaNao klama 73 ³1´ DI
21 ivaXaoYa sava-saaQaarNa saBaa baaolaaivaNao. klama 76
22 sahkarI saMsqaovar saimatI ¸ navaIna saimatI ¸ P`aXaasak naomaNao. klama 77– Ao

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23 saimatI inaYP`aBaaivat krNao va P`aXaasak naomaNao. klama 78

24 saMsqaosa inadoXa doNao. klama 79
25 saMsqaocyaa dPtracaa tabaa GaoNao. klama 80
26 saMsqaocao laoKaprIxaNa krNao. klama 81
27 laoKa prIxaNa daoYa duÉstI krvaUna GaoNao. klama 82
28 saMsqaocaI caaOkXaI krNao. klama 83
29 saMsqaocyaa nauksaanaI inaiEcat k$na ¸ Apcaa–yaakDUna vasaUla krNao. klama 88
30 saMsqaocaI tpasaNaI krNao. klama 89– Ao
31 vasaulaIcao AiQakar. klama 156

Section .23(2) Any person aggrieved by the decision of a society,

refusing him admission to its membership, may appeal to the Registrar ,
within a period of sixty days from the date of the decision of the society.
Every such appeal, as far as possible, be disposed of by the Registrar
within a period of three months from the date of its receipt :

Provided that, where such appeal is not so disposed of within the said
period of three months, the Registrar shall record the reasons for the
delay.

Section 35. (1) A society may, by resolution passed by a majority of not

less than three-fourths] of the members entitled to vote who are present
at a general meeting held for the purpose, expel a member for acts
which are detrimental to the interest or proper working of the society :

Provided that, no resolution shall be valid, unless the member

concerned is given an opportunity of representing his case to the
general body, and no resolution shall be effective unless it is approved
by the Registrar.

Section 43.(1) A society shall receive deposits and loans from members
and other persons, only to such extent, and under such conditions, as
may be prescribed, or specified by the by-laws of the society :

Provided that, the co-operative credit structure entity shall adopt its
own policies regarding interest rates on deposits and loans in conformity
with guidelines of the Reserve Bank of India or the National Bank.

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Section 44. (1) No society shall make a loan to any person other than a
member or on the security of its own shares, or on the security of any
person who is not a member :

Provided that, with the special sanction of the Registrar, a society

may make loans to another society.

(2) Notwithstanding anything contained in the foregoing

sub-section, a society may make a loan to a depositor on the security of
his deposit.

(3) If in the opinion of the State Government, it is necessary in the

interest of the society or societies concerned to do so, the State
Government may, by general or special order, prohibit, restrict or
regulate the lending of money by any society or class of societies on the
security of any property :

Provided that, the Registrar may, for ensuring safety of the funds of
the society or societies concerned, for proper utilisation of such funds in
furtherance of their objects and for keeping them within the loan making
limits laid down in the rules and by-laws, with the approval of the
Apex Bank, by general or special order, regulate further the extent,
conditions and manner of making loans by any society or class of
societies to its members or other societies :

Provided further that, nothing in this section shall apply to the loan
making policy made by the co-operative credit structure entity. However,
such entity shall adopt its own policy in conformity with 8[guidelines of
the Reserve Bank of India or National Bank.
Section 49(2) On receipt of a copy of such agreement], the employer
shall, if so required by the society by a requisition in writing and so long
as the total amount shown in the copy of the agreement as payable to
the society has been deducted and paid to the society,] make the
deduction in accordance with the agreement, and pay the amount so
deducted to the society, as if it were a part of the wages payable by him
as required under the Payment of Wages Act, 1936 on the day on which
he makes payment.

(3) If after receipt of requisition made under the foregoing

subsection, the employer at any time fails to deduct the amount
specified in the requisition from the salary or wages payable to the

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member concerned, or makes default in remitting the amount deducted

to the society, the employer shall be personally liable for the 1[payment
of such amount or where the employer has made deductions but the
amount so deducted is not remitted to the society, then such amount
together with interest thereon at one and half times the rate of interest
charged by the society to the member for the period commencing on the
date on which the amount was due to be paid to the society and ending
on the date of actually remitting it to the society ; and such amount
together with the interest thereon, if any, shall, on a certificate issued by
the Registrar, be recoverable from him as an arrear of land revenue, and
the amount and interest so due shall rank in priority in respect of such
liability of the employer as wages in arrears.

Section .71A.(1) No expenditure from the funds of a society shall be

incurred for the purpose of defraying the costs of any proceedings filed
or taken by or against any officer of the society in his personal capacity
under section 78, 78A or 96. If any question arises whether any
expenditure can be so incurred or not, such question shall be referred
to and decided by the Registrar, and his decision shall be final.

(2) If any person incurs expenditure in violation of sub-section (1),

the Registrar shall direct the person to repay the amount to the society
within one month and where such person fails to repay the amount as
directed, such amount shall, on a certificate issued by the Registrar, be
recoverable as arrears of land revenue.

(3) The person against whom action is taken by the Registrar under
sub-section (2) shall be disqualified to continue to be the officer of any
society or to be officer of any society at any next election including any
next bye-election held immediately after the expiration of a period of one
month during which such person has failed to pay the amount referred
to in sub-section (2).

Section.73. (1) The management of every society shall vest in a

committee, constituted in accordance with this Act, the rules and bye-
laws, which shall exercise such powers and perform such duties as may
be conferred or imposed respectively by this Act, the rules and the bye-
laws.
(1AB) The members of the committee shall be jointly and severally
responsible for all the decisions taken by the committee during its term
relating to the business of the society. The members of the committee
shall be jointly and severally responsible for all the acts and omissions
detrimental to the interest of the society :
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Provided that, before fixing any responsibility mentioned above, the

Registrar shall inspect the records of the society and decide as to
whether the losses incurred by the society are on account of acts or
omissions on the part of the members of the committee or on account of
any natural calamities, accident or any circumstances beyond the control
of such members :

Provided further that, any member of the committee, who does not
agree with any of the resolution or decision of the committee, may
express his dissenting opinion which shall be recorded in the
proceedings of the meeting and such member shall not be held
responsible for the decision embodied in the said resolution or such acts
or omissions committed by the committee of that society as per the said
resolution. Such dissenting member, if he so desires, may also
communicate in writing his dissenting note to the Registrar 5[within fifeen
days, from the date of the said resolution or decision or from the date of
confirmation of the said resolution or decision]. Any member, who is not
present for the meeting in which the business of the society is
transacted, and who has not subsequently confirmed the proceeding of
that meeting, such member shall also not be held responsible for any of
the business transacted in that meeting of the society.

(1A) Notwithstanding anything contained in this Act, the rules made

thereunder or in the bye-laws of any society or class of societies,—

(a) the first general meeting of a society shall be convened within

three months from the date of its registration to appoint a provisional
committee and to transact other business as may be prescribed. The
term of the members of such provisional committee shall be for a
period of one year from the date on which it has been first appointed
or till the date on which a regular committee is duly constituted in
accordance with the provisions of the rules or bye-laws made under
this Act, whichever is earlier ; and all the members of such provisional
committee shall vacate office on the date of expiry of such period
or such constitution of the committee ;

(b) notwithstanding anything contained in clause (a), the provisional

committees for the Co-operative Sugar Factories and Co-operative
Spinning Mills and such other class of society, as the State Government
may, by special or general order, in the Official Gazette, specify in this
behalf, shall be appointed by the State Government ; and the members
thereof shall hold office for a period of three years, which period may

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be extended by one year, at a time, so however that, the total period

shall not exceed five years, in the aggregate :

Provided that, the State Government shall have the power to change or
reconstitute such committee or, any or all members thereof at its
discretion even before the expiry of the period for which a member
or members were nominated thereon :

Provided further that, the member or members assuming office on

such change or re-constitution of the committee shall hold office for
the period for which the provisional committee has been appointed
under this clause ;

(c) pending the first constitution of the committee of a society, the

provisional committee of the society shall exercise the powers and
perform the duties of the committee of such society as provided in this
Act, the rules and bye-laws and make necessary arrangements for
holding election of the committee, before the expiry of its term.

Section .73-ID. (1) An officer who holds office by virtue of his election to
that office shall cease to be such officer, if a motion of no-confidence is
passed at a meeting of the committee by two-third majority of the total
number of committee members who are entitled to vote at the election
of such officer and his office shall, thereupon be deemed to be vacant.

(2) The requisition for such special meeting shall be signed by not less
than one-third of the total number of members of the committee who
are entitled to elect the officer of the committee and shall be delivered
to the Registrar. The requisition shall be made in such form and in such
manner as may be prescribed :

Provided that, no such requisition for a special meeting shall be made

within a period of six months from the date on which any of the officers
referred to in sub-section (1) has entered upon his office.

(3) The Registrar shall, within seven days from the date of receipt
of the requisition under sub-section (2), convene a special meeting of
the committee. The meeting shall be held on a date not later than fifteen
days from the date of issue of the notice of the meeting.

(4) The meeting shall be presided over by the Registrar or such officer
not below the rank of an Assistant Registrar of Co-operative Societies
authorised by him in this behalf. The Registrar or such officer shall, when

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presiding over such meeting, have the same powers as the President or
Chairman when presiding over a committee meeting has, but shall not
have the right to vote.

(5) The meeting called under this section shall not, for any reason,
be adjourned.

(6) The names of the committee members voting for and against the
motion shall be read in the meeting and recorded in the minute book
of committee meetings.

(7) If the motion of no-confidence is rejected, no fresh motion of no

confidence shall be brought before the committee within a period of
1one year from the date of such rejection of the motion.

Section.76. (1) A special general body meeting] may be called at any

time by the Chairman or by a majority of the committee and shall be
called within one month—
( i ) on a requisition in writing of one-fifth of the members of the
society or of members the number of which is specified in the bylaws
for the purpose, whichever is lower, or

( ii ) at the instance of the Registrar, or

( iii ) in the case of a society, which is a member of a federal

society, at the instance of the committee of such federal society.

(2) Where any officer or a member of the committee, whose duty it

was to call such meeting, without resonable excuse, fails to call such
meeting, the Registrar may by order declare such officer or member
disqualified for being a member of the committee for such period 1[not
exceeding five years], as he may specify in such order ; and if the officer
is a servant of the society, he may impose on him a penalty not
exceeding five thousand rupees]. Before making an order under this
sub-section, the Registrar shall give, or cause to be given, a reasonable
opportunity to the person concerned of showing cause against the action
proposed to be taken in regard to him.

(3) If a special general meeting of a society is not called in accordance

with the requisition referred to in sub-section (1), the Registrar or any
person authorised by him in this behalf, shall have power to call such
meeting, and that meeting shall be deemed to be a meeting duly called

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by the committee.

(4) The Registrar shall have power to order that the expenditure
incurred in calling a meeting under sub-section (3) shall be paid out of
the funds of the society or by such person or persons who, in the opinion
of the Registrar, were responsible for the refusal or failure to convene
the meeting.

Section .77A. (1) Where the Registrar is satisfied that,—

(1-a) a provisional committee has failed to make necessary

arrangements for holding election for the constitution of the first
committee, before the expiry of its term as specified in sub-section
(1A) of section 73 ;

(a) at the first constitution of the committee of any society there

is a failure to elect all or any of the members of the committee ;
members has expired or for any other reason election is held and
there is a failure to elect all or any of the members required to fill
the vacancies ;

(b-1) there is a stalemate in the constitution or committee has

ceased to function and vacuum is created in the management ;

(c) any committee is prevented from entering upon office ;

(d) a new committee has failed to enter upon office on the date
on which the term of office of the existing committee expired ; or

(f) where more than one group of persons in a society is

claiming to be elected as the committee members and proceedings
in respect thereof have been filed in the Co-operatives Court ;

The Registrar may, either suo-motu or on the application of any

officer or member of the society], by order appoint—

(i ) any member or members of the society to be the member

or members of the committee to fill the vacancies ;

(ii) a committee, consisting of not more than three members of

the society, or 6[one or more authorised officers, who need not be
members of the society, to manage the affairs of the society till a
new committee enters upon office :

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Provided that, before making such order, the Registrar shall publish
a notice on the notice board at the head office of the society, inviting
objections and suggestions with respect to the proposed order within a
period specified in the notice and consider all objections and
suggestions received by him within that period :

Provided further that, it shall not be necessary to publish such notice

in any case where Registrar is satisfied that immediate action is required
to be taken or that it is not reasonably practical to publish such notice:

Provided also that, if no member or members of the society are

willing to work on such committee, it shall be lawful for the Registrar,
to appoint one or more authorised officers, not being a member of the
society, as he may deem fit, to look after affairs of the society.

(2) The Committee or authorised officer] so appointed shall, subject

to the control of the Registrar and to such instructions as he may, from
time to time, give, have power to discharge all or any of the functions
of the committee or of any officer of the society, and take all such action
as may be required to be taken in the interests of the society.

(3) The Committee or authorised officer] so appointed shall hold

office for a period of six months from the date of assuming the
management of the society and shall make necessary arrangements for
constituting a new committee within the said period and for enabling the
new committee including any new committee referred to in clause (f) of
sub-section (1), which is determined by the Court to have been legally
elected, to enter upon office :

Provided that, in no circumstances the term of office of the

committee or authorised officer shall exceed six months from the date
of their holding office.

(4) The Registrar shall have the power to change the committee or
any or all members thereof or any or all the authorised officers
appointed under sub-section (1) at his discretion even before the expiry
of the period specified in the order made under sub-section (1).

(5) The provisions of sub-section (2) of section 78A shall apply

mutatis mutandis for fixation of remuneration to be paid to authorised
officers] appointed under sub-section (1).

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Section .78. (1) If, in the opinion of the Registrar, the committee makes
a persistent default in performance of its duties or is negligent in the
performance of its duties or is otherwise not discharging its functions
properly and diligently, or there is a stalemate in the constitution or
functioning of the committee, occasioned by resignation, disqualification
of members of committee or otherwise, the Registrar, after giving the
committee an opportunity of showing cause, in writing, if any, within
fifteen days from the date of receipt of notice and after giving reasonable
opportunity of being heard and after consultation with the federal society
to which the society is affiliated, comes to a conclusion that the charges
mentioned in the notice prima facie exist, but are capable of being
remedied with, he may by order,—

(i) keep the committee under suspension for such temporary

period, not exceeding six months as may be specified in the order ; and

(ii) appoint an administrator or committee of administrators

consisting of three or more members of the society otherwise than the
members of the committee so suspended in its place or appoint an
administrator or committee of administrators who need not be the
members of the society, to manage the affairs of society :

Provided that, nothing in this sub-section shall apply to a society,

where there is no Government shareholding or loan or financial
assistance in terms of any cash or kind or any guarantee by the
Government :

Provided further that, in case of a society carrying on the business of

banking, the provisions of the Banking Regulation Act, 1949, shall also
apply :

Provided also that, in case of society carrying on the business of

banking, the provisions of this clause shall have effect as if for the words
"six months" the words "one year" had been substituted :

Provided also that, the Registrar shall have the power to change the
committee or any member thereof or Administrator appointed, at his
discretion even, before the expiry of the period specified in the order
made under this section :

Provided also that, such federal society shall communicate its opinion,
to the Registrar within forty-five days from the date of receipt of

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communication, failing which it shall be presumed that such federal

society has no objection to the order of suspension and the Registrar
shall be at liberty to proceed further to take action accordingly.

(2) The administrator or committee of administrators, as the case may

be, so appointed under clause (ii) of sub-section (1), shall submit a
report to the Registrar within such period as may be specified in the
order as to the remedial measures taken and after going through the
report or any other material placed on record, if the Registrar is satisfied
that the charges mentioned in the notice are made good or remedied, he
shall by order revoke, the order of suspension and direct the
administrator or the committee of administrators to handover the
management to the suspended committee with immediate effect.

(3) When a notice is issued against any committee or a member under

sub-section (1), if resignation from any office is tendered by the
committee or a member, it shall not be valid or effective until two months
have elapsed from the date of issue of the notice or until it is permitted to
be accepted by the Registrar, whichever is earlier.

(4) The administrator or committee of administrators so appointed

shall, subject to the control of the Registrar and such instructions as he
may from time to time give, have power to exercise all or any of the
functions of the committee or of any officer of the society and take all
such actions as may be required in the interest of the society and shall
arrange for conduct of the election, through the State Co-operative
Election Authority, within the period specified and handover the
management to the newly elected Committee in accordance with the
Act, rules and by-laws of the society. The administrator or committee of
administrators so appointed as aforesaid, shall notwithstanding anything
contained in the by-laws, have power to call a special general body
meeting of the society to review or reconsider the decisions or the
resolutions taken or passed at the general body meeting called by the
previous committee or to endorse the action taken by it.

(5) The conditions of service of the administrator shall be fixed by the

Registrar which shall include the remuneration payable to him and
expenses of management. Such remuneration and expenses shall be
payable out of the funds of the society within such time and at such
intervals as the Registrar may fix, and if such remuneration or expenses
are not paid within such time or at intervals, the Registrar may direct the
person having custody of the funds of the society to pay to the
administrator or committee of administrators such remuneration and

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expenses in priority to any other payments, except land revenue, any

arrears of land revenue, or any sum recoverable from the society as
arrears of land revenue, and he shall, so far as the funds to the credit of
the society allow, comply with the orders of the Registrar.

(6) All acts done or purported to be done by the administrator or

committee of administrators during the period the affairs of the society
are carried on by the administrator or committee of administrators
appointed under sub-section (1) shall be binding on the new committee.

Section 79. (1) The Registrar may direct any society or class of
societies, to keep proper books of accounts 1[in such form including
electronic or any other form, as may be prescribed] with respect to all
sums of money received and expended by the society, and the matters
in respect of which the receipt and expenditure take place, all sales and
purchases of goods by the society, and the assets and liabilities of the
society, and to furnish such statements and returns and to produce such
records as he may require from time to time ; and the officer or officers
of the society shall be bound to comply with his order within the period
specified therein.

(1A) Every society shall file returns within six months of the close
of every financial year to which such accounts relate, to the Registrar or
to the person authorised by him. The returns shall contain the following
matters, namely :—

(a) annual report of its activities ;

(b) its audited statement of accounts ;
(c) plans for disposal of surplus funds as approved by the general
body of the society ;
(d) list of amendments to the by-laws of the society, if any ;
(e) declaration regarding date of holding of its general body
meeting and conduct of elections when due ;
(f) any other information required by the Registrar in pursuance
of any of the provisions of this Act.

(1B) Every society shall also file a return regarding the name of the
auditor or auditing firm from a panel approved by a State Government in
this behalf, appointed in the general body meeting together with his
written consent, within a period of one month from the date of annual
general body meeting.

(2) Where any society is required to take any action including filing

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of returns under this Act, the rules or the bye-laws, or to comply with an
order made under the [foregoing sub-sections] and such action is not
taken—

(a) within the time provided in this Act, the rules or the bye-laws,
or the order, as the case may, or

(b) where no time is so provided, within such time, having regard

to the nature and extent of the action to be taken, as the Registrar may
specify by notice in writing, the Registrar may himself, or through a
person authorised by him, take such action, at the expense of the
society ; and such expense shall be recoverable from the society as if it
were an arrear of land revenue.

(3) Where the Registrar takes action under sub-section (2), the
Registrar may call upon the officer or officers of the society whom he
considers to be responsible for not complying with the provisions of this
Act, the rules or the bye-laws, or the order made under sub-section (1),
and, after giving such officer or officers an opportunity of being heard,
may require him or them to pay to the society the expenses paid or
payable by it to the State Government as a result of their failure to take
action, and to pay to the assets of the society such sum not exceeding
one hundred rupees] as the Registrar may think fit for each day until the
Registrar’s directions are carried out.

(4) The Registrar or the authorised person on his behalf shall

scrutinise the returns and information so received and take further
necessary action, if required.

Section.80. (1) Where the Registrar is satisfied that the books and
records of a society are likely to be suppressed, tampered with or
destroyed, or the funds and property of a society are likely to be
misappropriated or misapplied, the Registrar or the person authorised by
him may apply to the Executive Magistrate within whose jurisdiction the
society is functioning for seizing and taking possession of the records
and property of the society.

(2) On receipt of an application under sub-section (1), the Magistrate

shall forthwith consider such application and, if satisfied that immediate
action is required, shall authorise] any police officer, not below the rank
of a sub-inspector, to enter and search any place where the records and
property are kept or likely to be kept, and to seize them and hand over

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possession thereof to the Registrar or the person authorised by him, as

the case may be.

(3) Where the Registrar or an officer not below the rank of District
Deputy Registrar (hereinafter referred to in this section as “the said
officer is satisfied that immediate action is required to be taken or that
the Executive Magistrate having jurisdiction is not likely to be available at
the headquarters for a consecutive period of three days or the books
and records of a co-operative society are in the immediate danger of
being tampered with or funds and property of a society are in the
immediate danger of being misappropriated or misapplied, the Registrar
or the said officer may, notwithstanding anything contained in sub-
sections (1) and (2), make an order to seize such books, records or
funds of the society either himself or through an officer authorised
by him in this behalf, and for that purpose the Registrar or the said
officer or the officer so authorised may after reasonable notice at any
reasonable time enter and search without warrant any premises where
he belives such books, records or funds to be and inspect and seize
such books, records or funds, and the officer or officers of the society
responsible for the custody of such books, records and funds shall
deliver such books, records or funds forthwith to the Registrar, the said
officer or the officers so authorised, who shall acknowledge receipt of
the books, records or funds of the society so seized.

The Registrar, the said officer or the officer so authorised, may, for the
purpose of execution of the said order, request the officer-in-charge of
the nearest police station to give him necessary assistance and such
police officer shall thereupon give him such assistance.
…………………..
AUDIT, INQUIRY, INSPECTION AND SUPERVISION

Section .81. (1) (a) The society shall cause to be audited its accounts at
least once in each financial year and also cause it to be completed
within a period of four months from the close of financial year to which
such accounts relate by auditor or auditing firm from a panel prepared by
the Registrar and approved by the State Government or an authority
authorized by it in this behalf, possessing required qualifications and
experience as may be prescribed, to be eligible for auditing accounts of
societies, appointed by the general body of a society, as provided in
sub-section (2A) of section 75 and shall lay such audit report before the

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annual general body meeting. In case of apex society, the audit report
shall also be laid before both Houses of the State Legislature, in such
manner, as may be prescribed :

Provided that, if the Registrar is satisfied that the society has failed to
intimate and file the return as provided by sub-section (2A) of section 75
and sub-section (1B) of section 79, by order, for the reasons to be
recorded in writing, he may cause its accounts to be audited, by an
auditor from the panel of the auditors approved by the State Government
or an authority authorized by it in this behalf :

Provided further that, no auditor shall accept audit of more than twenty
societies for audit in a financial year excluding societies having paid up
share capital of less than rupees one lakh :

Provided also that, the Registrar shall maintain a panel of auditors and
auditing firms as approved by the State Government or an authority
authorized by it in this behalf.

(b) The manner of preparation, declaration and maintenance of the

panel of auditors and auditing firms by the Registrar shall be such as
may be prescribed.

(c) The committee of every society shall ensure that the annual financial
statements like the receipts and payments or income and expenditure,
profit and loss and the balance-sheet alongwith such schedules and
other statements are audited, within four months of the closure of the
financial year.

(d) The Registrar shall submit the audit report of every apex
co-operative society to the State Government annually for being laid
before both the Houses of the State Legislature in the manner
prescribed.

(e) The auditor’s report shall have,—

( i ) all particulars of the defects or the irregularities observed in

audit and in case of financial irregularities and misappropriation or
embezzlement of funds or fraud, the auditor or the auditing firm shall
investigate and report the modus operandi, the entrustment and amount
involved ;

(ii) accounting irregularities and their implications on the financial

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statements to be indicated in detail in the report with the corresponding

effects on the profit and loss ;

(iii) the functioning of the committee and sub-committees of the

societies be checked and if any irregularities or violations are observed
or reported, duly fixing the responsibilities for such irregularities or
violations.

(f) The remuneration of the auditor or auditing firm of a society

shall be borne by the society and shall be at such rate as may be
prescribed.

(g) The Registrar shall maintain the list of societies distictwise, the list
of working societies, the list of societies whose accounts are audited, the
list of societies whose accounts are not audited within the prescribed
time and reasons therefor. The Registrar shall co-ordinate with the
societies and the auditors or auditing firms and ensure the completion of
audit of accounts of all the co-operative societies in time every year.

Explanation I.—For the purposes of this section, the expression,

“ possessing required qualifications ” for being included in the panel duly
approved by the State Government or an authority authorised by the
State Government in this behalf, from time to time, shall mean and
include—

(a) a person who is a Chartered Accountant within the meaning of

the Chartered Accountants Act, 1949, who has a fair knowledge of the
functioning of the societies and an experience of at least one year in
auditing of societies with a working knowledge of Marathi language ;

(b) an auditing firm which is a firm of more than one Chartered

Accountants within the meaning of the Chartered Accountants
Act, 1949, who have a fair knowledge of the functioning of the societies
with a working knowledge of Marathi language ;

(b-1) a person who is Cost Accountant within the meaning of the

Cost and Works Accountants Act, 1959, who has a fair knowledge of the
functioning of the societies and an experience of at least one year of
auditing in societies with a working knowledge of Marathi language ;

(b-2) an auditing firm, which is afirm of more than one Cost

Accountants within the meaning of the Cost and Works Accountants
Act, 1959, having a fair knowledge of the functioning of the societies

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with a working knowledge of Marathi language ;

(c) a certified auditor, who is a person holding a Degree from a

recognised University and also has completed a Government Diploma
in Co-operation and Accountancy and who has a fair knowledge of the
functioning of the societies and an experience of at least three years in
auditing of societies with a working knowledge of Marathi language ;

(d) a Government Auditor, who is an employee of the Co-operation

Department of the State, possessing the Higher Diploma in
Co-operative Management or the Diploma in Co-operative Audit or
Government Diploma in Co-operation and Accountancy with a working
knowledge of Marathi language and who has completed the period of
probation successfully ;

Explanation II.—The terms and conditions for inclusion and retention

of name as an auditor or auditing firm in the panel of auditors shall be
subject to the terms and conditions, as may be prescribed.

(2) The audit under sub-section (1) shall 3[be carried out as per Auditing
standards notified by the State Government from time to time and shall
also include examination or verification of the following items, namely :—

( i ) over dues of debts, if any ;

(ii) cash balance and securities and a valuation of the assets and
liabilities of the society ;

(iii) whether loan and advances and debts made by the society on
the basis of security have been properly secured and the terms on which
such loans and advances are made or debts are incurred are not
prejudicial to the interest of the society and its members ;

(iv) whether transactions of the society which are represented

merely by book entries are not prejudicial to the interest of the society ;

(v) whether loans and advances made by the society have been shown
as deposits ;

(vi) whether personal expenses have been charged to revenue

account ;

(vii) whether the society has incurred any expenditure in

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furtherance of its objects ;

(viii) whether the society has properly utilised the financial

assistance granted by Government or Government undertakings or
financial institutions, for the purpose for which such assistance was
granted ;

(ix) whether the society is properly carrying out its objects and
obligations towards members.

(2A) Where, in the opinion of the State Government, it is necessary in

the public interest or in the interest of the society to do so in relation to
any society or class of societies for ensuring management thereof in
accordance with sound business principles or prudent commercial
practices, the State Government may, by order, direct 3[that such
society or class of societies shall prepare and maintain its accounts in
the form determined by the State Government, from time to time and
that cost audit or performance audit or both, of such society or class of
societies, as may be specified in the order, shall be conducted.

(2B) Where any order is issued under sub-section (2A), the society shall
cause its audit to be conducted] by a cost accountant who is a member
of the Institute of Cost and Works Accountants of India constituted under
section 3 of the Cost and Works Accountants Act, 1959.(3) (a).The
Auditor shall, for the purpose of audit, at all time have access to all the
books, accounts, documents, papers, securities, 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 books, accounts, documents, papers, securities, cash or other
properties, to produce the same at any place at the head-quarters of the
society or any branch thereof.

(3) (a)The Auditor] shall, for the purpose of audit, at all time have
access to all the books, accounts, documents, papers, securities, 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 books, accounts, documents, papers, securities, cash or other
properties, to produce the same at any place at the head-quarters of the
society or any branch thereof.

(b) If the Registrar has reason to believe that there exists an element
of fraud, misapplication of funds, manipulation of the accounts and the

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accounts of the society are likely to be tampered with, thereby causing

loss to the society, he shall be competent to depute Flying Squad to a
society or societies for examination of books, records, accounts, and
such other papers and for verification of cash balance. The report of the
Flying Squad shall be treated as sufficient evidence for further action, if
any.

(c) If it is brought to the notice of the Registrar that the audit report
submitted by the auditor does not disclose the true and correct picture of
the accounts, the Regisrtrar or the authorised person may carry out or
cause to be carried out a test audit of accounts of such society. The test
audit shall include the examination of such items as may be prescribed
and specified by the Registrar in such order.

(4) Every person who is, or has at any time been, 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, may require.

(5) The auditor appointed under sub-section (1) 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 there at, in respect of any part of the business with which he is
concerned as auditor.

(5A) If, during the course of audit of any society, the auditor is satisfied
that some books of accounts or other documents contain any
incriminatory evidence against past or present officer or employee of the
society the auditor shall immediately report the matter to the Registrar
and, with previous permission of the Registrar, may impound the books
or documents and give a receipt thereof to the society.

(5B) The auditor shall submit 3[his audit report within a period of one
month from its completion and in any case before issuance of notice of
the annual general body meeting to the society and to the Registrar in
such form as may be specified by the Registrar, on the accounts
examined by him and on the balance sheet and profit and loss account
as on the date and for the period up to which the accounts have been
audited, and shall state whether in his opinion and to the best of his
information and according to the Explanation given to him by the society
the said accounts give all information required by or under this Act and
present the true and fair view of the financial transaction of the society :
Provided that, where the auditor has come to a conclusion in his audit

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report that any person, is guilty of any offence relating to the accounts or
any other offences, he shall file a specific report to the Registrar within a
period of fifteen days from the date of submission of his audit report. The
auditor concerned shall, after obtaining written permission of the
Registrar, file a First Information Report of the offence. The auditor, who
fails to file First Information Report, shall be liable for disqualification and
his name shall be liable to be removed from the panel of auditors and he
shall also be liable to any other action as the Registrar may think fit :
Provided further that, when it is brought to the notice of the Registrar
that, the auditor has failed to initiate action as specified above, the
Registrar shall cause a First Information Report to be filed by a person
authorised by him in that behalf :

Provided also that, on conclusion of his audit, if the auditor finds that
there are apparent instances of financial irregularities resulting into
losses to the society caused by any member of the committee or officers
of the society or by any other person, then he shall prepare a Special
Report and submit the same to the Registrar alongwith his audit report.
Failure to file such Special Report, would amount to negligence in the
duties of the auditor and he shall be liable for disqualification for
appointment as an auditor or any other action, as the Registrar may
think fit.

(6) If it appears to the Registrar, on an application by a society or

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) Special audit of the Co-operative Bank if requested by the Reserve

Bank of India shall be conducted and report thereof shall be submitted to
the Reserve Bank of India under intimation to the Registrar alongwith the
Special Audit Report.

Section.82. If the result of the audit held under the last preceding
section discloses any defects in the working of a society, the society
shall within three months from the date of the audit report, explain to the
Registrar the defects on the irregularities pointed out by the auditor, and
take steps to rectify the defects and remedy irregularities, and report to
the Registrar the action taken by it thereon 2[and place the same before
the next general body meeting. The Registrar may also make an order
directing the society or its officers to take such action, as may be
specified in the order to remedy the defects, within the time specified

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therein. If, the committee of a society fails to submit the audit rectification
report to the Registrar and to the annual general body meeting, all the
members of the committee shall be deemed to have committed an
offence under section 146 and accordingly shall be liable for penalty as
provided in section 147. Where the society concerned is a member of a
federal society, such order of imposition of penalty shall be made after
consulting the State federal society concerned :

Provided that, the Registrar or the person authorised by him shall

scrutinise the audit rectification report accordingly and inform the society
about such report within six months from the date of receipt thereof :
Provided further that, it shall be the responsibility of the auditor
concerned to offer his remarks on the rectification report of the society,
itemwise, till entire rectification is made by the society and submit his
report to the Registrar :

Provided also that, such federal society shall communicate its opinion
to the Registrar within a period of forty-five days from the date of receipt
of communication, failing which it shall be presumed that such federal
society has no objection to the proposed action and the Registrar shall
be at liberty to proceed further to take action accordingly.

Section.83. (1) The Registrar may suo motu, or, on the application of
the one-fifth members of the society or on the basis of Special Report
under the third proviso to sub-section (5B) of section 81, himself or by a
person duly authorised by him in writing, in this behalf, shall hold an
inquiry into the constitution, working and financial conditions of the
society.

(2) Before holding any such inquiry on an application, the Registrar may
having regard to the nature of allegations and the inquiry involved,
require the applicant to deposit with him such sum of money as he may
determine, towards the cost of the inquiry. If the allegations made in the
application are substantially proved at the inquiry, the deposit shall be
refunded to the applicant, and the Registrar may under section 85, after
following the procedure laid down in that section, direct from whom and
to what extent the cost of the inquiry should be recovered. If it is proved
that the allegations were false, vexatious or malicious, the Registrar may
likewise direct that such cost shall be recovered from the applicant.
Where the result of the inquiry shows that the allegations were not false,
vexatious or malicious, but could not be proved, such cost may be borne
by the State Government.

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(3) (a) All officers, members and past members of the society in respect
of which an inquiry is held, and any other person who, in the opinion of
the officer holding the inquiry is in possession of information, books and
papers relating to the society, shall furnish such information as in their
possession, and produce all books and papers relating to the society
which are in their custody or power, and otherwise give to the officer
holding an inquiry all assistance in connection with the inquiry which they
can reasonably give.

(b) If any such person refuses to produce to the Registrar or any person
Authorized by him under sub-section (1), any book or papers which it is
his duty under clause (a) to produce or to answer any question which is
put to him by the Registrar or the person authorised by the Registrar in
pursuance of sub-clause (a), the Registrar or the person authorised by
the Registrar may certify the refusal and the Registrar, after hearing any
statement which may be offered in defence, punish the defaulter with a
penalty not exceeding five thousand rupees]. Any sum imposed as
penalty under this section shall, on the application by the Registrar or
the person authorised by him, to a Magistrate having jurisdiction, be
recoverable by the Magistrate as if it were a fine imposed by himself.

(c) The Registrar or the officer authorised by him shall complete

the inquiry and submit his report as far as possible within a period of six
months and in any case not later than nine months.

(4) The result of any inquiry under this section shall be communicated
to the society whose affairs have been investigated.

(5) It shall be competent for the Registrar to withdraw any inquiry from
the officer to whom it is entrusted, and to hold the inquiry himself or
entrust it to any other person as he deems fit.

Section .88. (1) Where, in the course of or as a result of an audit under

section 81 or an inquiry under section 83 or an inspection under section
84 or the winding up of a society, the Registrar is satisfied on the basis
of the report made by the auditor or the person authorised to make
inquiry under section 83 or the person authorised to inspect the books
under section 84 or the Liquidator under section 105 or otherwise that
any person who has taken any part in the organisation or management
of the society or any deceased, or past or present officer of the society
has, within a period of five years prior to the date of commencement of
such audit or date of order for inquiry, inspection or] winding up,
misapplied or retained, or become liable or accountable for, any money

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or property of the society or has been guilty of misfeasance or breach of

trust in relation to the society, the Registrar or a person authorised by
him in that behalf may frame charges against such person or persons,
and after giving a reasonable opportunity to the person concerned and in
the case of a deceased person to his representative who inherits his
estate, to answer the charges, make an order requiring him to repay or
restore the money or the property or any part thereof, with interest
at such rate as the Registrar or the person authorised under this section
may determine, or to contribute such sum to the assests of the society
by way of compensation in regard to the misapplication, retention,
misfeasance or breach of trust, as he may determine :

Provided that, proceedings under this sub-section, shall be completed

by the authorised person within a period of two years from the date of
issue of order by the Registrar :

Provided further that, the Registrar may, after recording the reasons
therefor, extend the said period for a maximum period of six months :

Provided also that, the Government may, on the report of the Registrar
or suo moto, for the reasons to be recorded in writing, extend the said
period as may be required, from time to time, to complete the
proceedings under this sub-section :

Provided also that, in case of the proceedings under this sub-section

which have not been completed within the aforesaid period on the date
of commencement of the Maharashtra Co-operative Societies
(Amendment) Act, 2017, the Government may, on the report of the
Registrar or suo moto, for the reasons to be recorded in writing, extend
the period, from time to time, for completion of such proceedings as may
be required.

(2) The Registrar or the person authorised under sub-section (1) on

making any order under this section, may provide therein for the
payment of the cost or any part thereof, as he thinks just and he may
direct that such costs or any part thereof shall be recovered from the
person against whom the order has been issued.

(3) This section shall apply, notwithstanding that the act is one for which
the person concerned may be criminally responsible.

Section.89A. (1) It shall be competent for the Registrar to inspect or

cause to be inspected the working of any society to ensure that—

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(a) the provisions of the Act, rules and bye-laws of the society are
being properly followed by the society ;

(b) the records and books of accounts are kept in proper forms ;

(c) overall view is taken to ensure that the business of the society is
being run on sound business principles and under professional and
efficient management ;

(d) the society is following the co-operative principles and the

directives or directions given by the State Government in accordance
with the provisions of this Act and the rules made thereunder ;

(e) the returns as provided by section 79 are submitted to the Registrar

regularly and properly.

(2) For the purpose of supervision over the societies, the Registrar shall
have the power—

(a) to inspect the records and books of the accounts of any society and
for that purpose he shall have, at all times, access to all the records and
books of accounts of the society ; and

(b) to summon any officer or employee who has the custody of the
records or books of accounts of the society to produce them before him.

(3) The State Government may levy supervision fees on any society or
class of societies at such rates, as the State Government may, having
regard to the area of operation, the nature of business and the objects of
the society, by notification in the Official Gazette, fix from time to time.

(4) Every society liable to pay the fees levied under sub-section (3) shall
pay such fees by such date and in such manner as the State
Government may specify in the notification issued under sub-section (3).

(5) The State Government may, having regard to the financial position
of any society or class of societies, by general or special order published
in the Official Gazette, exempt such society or class of societies from
payment of such fees for such period as may be specified in such order,
or reduce or remit in whole or in part such fees.

Section.156. (1) The Registrar or any officer subordinate to him and

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empowered by him in this behalf or an officer of such society as may be

notified by the State Government, who is empowered by the Registrar in
this behalf may, subject to such rules as may be made by the State
Government, but without prejudice to any other mode of recovery
provided by or under this Act, recover—

(a) any amount due under a decree or order of a Civil Court obtained
by a society ;

(b) any amount due under a decision, award or order of the Registrar,
Co-operative Court or Liquidator or Co-operative Appellate Court ;

(c) any sum awarded by way of costs under this Act ;

(d) any sum ordered to be paid under this Act as a contribution to

the assets of the society ;

(e) any amount due under a certificate granted by the Registrar

under sub-sections (1) or (2) of section 101 or under sub-section (1) of
section 137 ; together with interest, if any, due on such amount or sum
and the costs of process according to the scales of fees laid down by the
Registrar, from time to time, by the attachment and sale or by sale
without attachment of the property of the person against whom such
decree, decision, award or order has been obtained or passed.

(2) The Registrar or the officer empowered by him shall be deemed,

when exercising the powers under the foregoing sub-section, or when
passing any order on any application made to him for such recovery, to
be a Civil Court for the purposes of article 136 in the Schedule to the
Limitation Act, 1963.

…………………..

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