Page 280 - CA Inter Audit PARAM

CA Ravi Taori
QNO— Inquiry by Central Registrar under Section 73 New Course – (SM25)
AOC.11.60 Bhaskar CNO - AOC.105
Discuss, in what circumstances, Central Registrar can hold an inquiry into working and financial condition
of a multi-state cooperative society
Answer When:
1. Request Sources:
• Federal co-operative affiliated with a Multi-State Co-operative society.
• Creditor or one-third of the board members or one-fifth of total members of a Multi-state cooperative
society.

2. How:
Conducting Inquiry: Central Registrar or an authorized person, through a written order, investigates the
constitution, operations, and financial status of the Multi-State Co-operative society.

3. Opportunity of being Heard:
Prior Notice: A 15-day notice must be provided to the Multi-State co-operative society before conducting the
inquiry.

4. Powers Given:
Access to Records and Properties:
Central Registrar or authorized personnel can access, at all reasonable times, the books, accounts, documents,
securities, cash, and other assets owned or held by the Multi-State Cooperative society.
They have the authority to summon anyone responsible for these records or assets to produce them at a
specified location.
General Meeting Oversight:
Regardless of any bye-laws specifying notice periods for general meetings of the Multi-State Co-operative
society, the Central Registrar can require the society's officers to call a meeting with a notice period of no less
than seven days.
If the society's officers refuse or fail to call the meeting, the Central Registrar has the power to convene it
independently.
Summoning Witnesses:
The Central Registrar can summon individuals reasonably believed to possess knowledge about the Multi-
State Co-operative society's affairs. These individuals are required to appear at the society's headquarters or
any of its branches, where they can be examined under oath.

5. Follow-up:
Reporting: Central Registrar communicates the inquiry report to the Multi-State co-operative society,
affiliated financial institutions, and the requesting entity within three months of receiving the report.

QNO Inspection under Sec 79 Old Course – (M22R)
AOC.15 #Unique
No inspection under Section 79 of Multi-State Co-operative Societies Act, 2002 shall be made unless a notice
has been given to the multi-state co-operative society. Explain stating clearly when and how such inspection

can be made. Also state the powers available with the Central Registrar in this regard along with provisions
relating to communication of the inspection report under the said section
Answer Inspection of Multi-State Co-operative societies under Section 79
1. When: The Central Registrar may, on a request from

(i) federal co-operative to which a Multi-State Co-operative society is affiliated or a creditor or
(ii) not less than one-third of the members of the board or
(iii) not less than one-fifth of the total number of members of a Multi-State co-operative society
2. How: By general or special order in writing in this behalf inspect or direct any person authorized by him by
order in writing in this behalf to make an inspection into the constitution, working and financial condition of
a Multi-State co-operative society.
3. Opportunity of Being heard: No inspection shall be made unless a notice of not less than fifteen days has
been given to the multi-state co-operative society.
4. Powers available: The Central Registrar or the person authorized by him shall have the following powers:
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