Gujarat Co-operative Societies (Amendment) Act, 2002*
| [Gujarat Act No. 13 of 2002] | [6th April, 2002] |
An Act further to amend the Gujarat Co-operative Societies Act, 1961.
It is hereby enacted in the Fifty-third Year of the Republic of India as follows:-
* (Received the assent of the Governor on 6th April, 2002 and published in the "Gujarat Government Gazette", on the 6th April, 2002)
1. Short title and commencement.- (1) This Act may be called the Gujarat Co-operative Societies (Amendment) Act, 2002.
(2) It shall be deemed to have come into force on the 22nd January, 2002.
2. Insertion of new Chapter XB in Guj. X of 1962.- In the Gujarat Co-operative Societies Act, 1961 (Guj. X of 1962) (hereinafter referred to as "the principal Act"), after Chapter XA, the following Chapter shall be inserted, namely:-
"CHAPTER XB
CERTAIN OTHER PROVISIONS RELATING TO URBAN CO-OPERATIVE BANKS
115B. Definitions.- In this Chapter, unless the context otherwise requires,-
(a) "Bank" means an Urban Co-operative Bank;
(b) "committee" means a committee of an Urban Co-operative Bank;
(c) "committee member" means a member of a committee;
(d) "company" means any body corporate and includes a firm and other association of individuals;
(e) "member of a family" in relation to a committee member means a wife or, as the case may be, a husband, father, mother, son who is dependent for his maintenance and unmarried daughter;
(f) "Urban Co-operative Bank" means a society registered under this Act and doing the business of banking, as defined in clause (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949).
115C. Qualifications and disqualifications for being committee member.- (1) A person shall not be eligible for being chosen as a committee member unless he,-
(a) is continuously a member of the bank for a period of not less than three years and continues to be such member, and
(b) has deposited in the bank an amount of not less then twenty thousand rupees and continues to so deposit.
(2)(a) A person shall be disqualified for being a committee member if he ceases to possess any of the qualifications mentioned in clauses (a) and (b) of sub-section (1).
(b) A person shall be disqualified for being chosen as or for being a committee member,-
(i) if such a person has made default in repayment of any loan taken from any bank or other society,
(ii) if a company in which the person or any member of his family has any interest has made default in repayment of any loan taken from any bank or other society after the date when repayment of the loan has become due,
(iii) if such person is convicted of an offence under section 115H.
(3) A committee member shall cease to hold office as such if at any time during the term of office, he becomes disqualified for being a committee member by reason of the provisions of sub-section (2).
(4) If any question arises as to whether a committee member has ceased to hold office as such under sub-section (3), the Registrar may after giving an opportunity to the committee member of being heard, determine the question and where the Registrar determines that a committee member has ceased to hold office, may by order remove such committee member.
115D. Right to vote.- No person shall exercise the right to vote at an election of a member of a committee in a financial year unless he is a member of the bank for the whole of the financial year preceding the financial year in which the election is held and continues to be such member.
115E. Term of office of officers.- (1) A Chairman, Vice-chairman or Managing Director (if such Director is elected) of a committee shall, unless he resigns or is removed earlier, be entitled to hold office continuously for not more than two terms.
(2) A person who has held the office of a Chairman or Vice-chairman or Managing Director (if he is elected) continuously for two terms, shall be eligible to hold that office after a lapse of a period of not less than two terms after he ceases to hold that office.
Explanation-I- For the purpose of this section, the expression, "term" means a term consisting of three years commencing from the date of the first meeting of a committee in which a Chairman, Vice-chairman or, as the case may be, Managing Director (if he is elected) is elected.
Explanation-II- Where any person holding the office of the Chairman, Vice-Chairman or Managing Director (if such Director is elected) of a Committee for a period exceeding three years but not exceeding six years at the commencement of the Gujarat Co-operative Societies (Amendment) Act, 2002 (Guj. 13 of 2002.) is again elected to that office after such commencement, he shall, for the purpose of this section, be deemed to have held office for one term before such election.
115F. Ensurance of certain things by committee.- A committee shall ensure that-
(a) information is furnished every month to the Registrar in such form as may be prescribed, regarding the loans taken from the bank by each committee member, members of the family and companies with which he is associated, in any manner;
(b) the bank is registered as an insured bank under the Deposit Insurance and Credit Guarantee Corporation Act, 1961;
(c) defects in the working of the bank are rectified and financial irregularities disclosed in the course of audit of the bank or otherwise are remedied;
(d) action to recover loans given by the bank is taken within one year from the date when repayment of the same has become due;
(e) no financial loss is caused to the bank and any debt due to the bank which is not recovered within a period of one year from the date when it has become due shall be recovered;
(f) civil and criminal proceedings against a person who, in the opinion of the committee, has misappropriated any fund of the bank are initiated;
(g) the provisions of sections 18 and 24 of the Banking Regulation Act, 1949 (10 of 1949) as applicable to co-operative societies and of section 71 are complied with and if in its opinion any of the said provisions is contravened, such contravention is forthwith reported to the Registrar.
115G. Urban Bank Credit Equalization Fund.- (1) There shall be established by the Gujarat State Co-operative Bank Limited (hereinafter in this section reffered to as "the State Co-operative Bank") a fund called "Urban Bank Credit Equalization Fund" consisting of payments made into it under sub-section (2).
(2) After providing for the reserve fund as provided in section 67, for the dividend as provided in section 68, for the educational fund as provided in section 69 and for contribution for the public purpose as provided in section 70, the bank shall each year set aside a sum of fifteen per cent, of its profits and pay the same to the State Co-operative Bank for the purpose of crediting it into the Urban Bank Credit Equalization Fund.
(3) The Urban Bank Credit Equalization Fund shall be maintained and utilised by the State Co-operative Bank in such manner as may be prescribed.
115H. Offences and their punishment and cognizance.- (1)(a) It shall be an offence if a committee fails to comply with the provisions of any of the clauses (a) to (g) of section 115F.
(b) It shall be an offence if a committee fails to ensure that information under clause (a) of section 115F is true.
(c) It shall be an offence if a committee fails to ensure that a report under clause (g) of section 115F is true.
(2) Where an offence under this section has been committed by a committee of a bank, every person who, at the time the offence was committed, was a member of such committee, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment as provided in this section if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(3) Every committee member who is deemed to be guilty of an offence under sub-section (1), read with sub-section (2) shall, on conviction, be punished,-
(a) If it is an offence under clause (a) of sub-section (1) for failure to comply with the provisions of-
(i) clause (a) of section 115F with fine which may extend to twenty thousand rupees;
(ii) clause (b) of section 115F with imprisonment for a term which may extend to six months or with fine which may extend to one lakh rupees or with both;
(iii) clause (c) of section 115F with imprisonment for a term which may extend to one year or with fine which may extend to one lakh rupees or with both;
(iv) clause (d) of section 115F with imprisonment for a term which may extend to six months or with fine which may extend to one lakh rupees or with both;
(v) clause (e) of section 115F with imprisonment for a term which may extend to one year or with fine which may extend to one lakh rupees or with both;
(vi) clause (f) of section 115F with imprisonment for a term which may extend to two years or with fine which may extend to two lakh rupees or with both;
(vii) clause (g) of section 115F with imprisonment for a term which may extend to one year or with fine which may extend to one lakh rupees or with both.
(b) If it is an offence under clause (b) of sub-section (1), with imprisonment for a term which may extend to two years or with fine which may extend to two lakh rupees or with both.
(c) If it is an offence under clause (c) of sub-section (1), with imprisonment for a term which may extend to two years or with fine which may extend to two lakh rupees or with both.
(4) Whoever after having been convicted of an offence under clause (a) of sub-section (1) for failure to comply with the provisions of clause (a) of section 115F is again convicted thereunder shall, on every such conviction, be punished with fine which may extend to fifty thousand rupees.
(5) Whoever, after having been convicted of an offence under clause (a) of sub-section (1) for failure to comply with the provisions of clause (c) of section 115F continues to commit such offence shall be punished for each day after the first, during which he continues so to offend, with fine which may extend to one thousand rupees.
(6) No court inferior to that of the Metropolitan Magistrate or the Magistrate of the First Class shall try any offence under this section.
(7) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for the Metropolitan Magistrate or the Magistrate of the First Class to pass a sentence of imprisonment or a fine on any person in excess of his powers under section 29 of that Code.
(8) No procecution under this section shall be lodged except with the previous sanction of the Registrar.
115I. Application of the provisions of section 84 to specified bank.- The provisions of section 84 shall apply to a specified bank as if in sub-section (1) of that section, for the words "at least once in each year", the words "at least once in each quarter of a year" had been substituted.
Explanation.- For the purpose of this section, the expression, "specified bank" means,-
(i) a bank having deposits of not less than fifty crores rupees;
(ii) a bank which is a Scheduled Bank within the meaning of clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).
115J. Chapter to override other provisions of Act.- The provisions of this Chapter shall have effect notwithstanding anything to the contrary contained in the other provisions of this Act or the rules made thereunder or the byelaws of the bank.
115K. Savings.- Nothing in sub-section (2) of section 115C shall apply to a person who is a committee member on the date of the commencement of the Gujarat Co-operative Societies (Amendment) Act, 2002 (Guj. 13 of 2002.).
115L. Transitory provision.- Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of the bank, a person who at the commencement of the Gujarat Co-operative Societies (Amendment) Act, 2002 (Guj. 13 of 2002.) is holding the office of the Chairman, Vice-chairman or Managing Director (if such Director is elected) of a committee continuously for a period not less than six years shall, unless he resigns or is removed earlier, cease to hold that office either on the date when the new Chairman, Vice-chairman or, as the case may be, Managing Director is elected or on the 30th June, 2002, whichever is earlier.".
3. Repeal and savings.- (1) The Gujarat Co-operative Societies (Amendment) Ordinance, 2002 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act, as amended by this Act.