Haryana act 019 of 2006 : Haryana Co-operative Societies (Amendment) Act, 2006

Preamble

Haryana Co-operative Societies (Amendment) Act, 2006*

[Haryana Act No. 19 of 2006][17th April, 2006]

An Act further to amend the Haryana Co-operative Societies Act, 1984

Be it enacted by the Legislature of the State of Haryana in the Fifty-seventh Year of the Republic of India as follows:-

* [Received the assent of the Governor on 17th April, 2006 and published in the "Haryana Government Gazette", Extraordinary, No. Leg. 20/2006, dated 26th April, 2006].

Section 1. Short title

1. Short title.- This Act may be called the Haryana Co-operative Societies (Amendment) Act, 2006.

Section 2. Amendment of section 2 of Haryana Act 22 of 1984

2. Amendment of section 2 of Haryana Act 22 of 1984.- Existing section 1 of the Haryana Co-operative Societies Act, 1984 thereinafter called the principal Act, shall be renumbered as sub-Section (1) thereof ??? in sub-section (1) so renumbered.-

(a)(i) after clause (a), the following clause shall be ??? namely:-

‘(aa) "area of-operation" means an area from which the persons are admitted as members;’

(ii) after clause (d), the following clauses shall he inserted, namely:-

‘(da) "certified copy" means a copy of an entry in the books of society together with a certificate whiten at the foot of such copy that it is a true copy of such entry, that such entry is contained in one or the books of the society and was made on usual and ordinary course of business and that hook is still in the custody of the society such certificate shall be signed by the Chief Executive of the society with his name and official title;

(db) "chartered accountant" means a member of the Institute of Chartered Accountants of India within the meaning of the Chartered Accountants Act, 1949 (38 of 1949);’

(iii) after clause (c), the following clauses shall be inserted, namely:-

‘(ca) "co-operative bank" means a co-operative society which undertakes banking business;

(cb) "co-operative principles" menus the co-operative principles specified in the Schedule;’;

(iv) after clause (h), the following clause shall be inserted, namely:-

‘(ha) "delegate" means a person elected by a group of members to represent them the general body of the society in accordance with its bye-laws;’;

(v) after clause (j), the following clause shall be inserted, namely:-

‘(ja) "interest" means an interest of a member in a society and includes shares, loans, deposits and obligations that arise by virtue of its bye-laws; and are owed by the society to a member;’;

(vi) after clause (r), the following clause shall be inserted namely:-

‘(ra) "Schedule" means Schedule appended to this Act;’;

(vii) after clause (s), the following clause shall be inserted, namely:-

‘(sa) "share" means an interest of a member in the society measured by a sum of in may including both rights and liabilities;’;

(b) utter sub-section (1), the following sub-section shall be added at the ??? namely:-

"(2) All other words and expressions used and not defined in this Act but defined in thus Act but defined in the ??? Co-operative Societies Act, 2002 (39 of 2002), shall have the meaning respectively assigned in the said Act.".

Section 3. Amendment of section 3 of ??? Act 22 ???

3. Amendment of section 3 of ??? Act 22 ???.- In section 3 of the principal Act,-

(i) in sub-section (2), the words "all or" shall be omitted:

(ii) for sub-section (3), the following sub-section shall be substituted, namely:-

"(3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2), subject to the general superintendence and control of the Registrar. For carrying out the purposes of this Act, the Registrar may issue directions to the persons appointed to assist the Registrar under sub-section (1) which shall be binding upon them.".

Section 4. Amendment of section 8 of Haryana Act 22 of 1984

4. Amendment of section 8 of Haryana Act 22 of 1984.- For sub-sections (2) and (3) of section 8 of the principal Act, the following ??? shall be substituted, namely:-

"(2) Where the Registrar refuses to register a society he shall ??? within a period of one month from the date of receipt of the application for registration, the order of refusal together with the reasons thereof to such of the applicants as may be prescribed:

Provided that no order of refusal shall be made unless the applicant has been given a reasonable opportunity of being heard.

Provided further that if the application for registration is not disposed of within a period of one month specified in sub-section (2) or the Registrar fails to communicate the order of refusal within the said period, the application shall be deemed to have been accepted for registration and the Registrar shall issue the registration certificate in accordance with the provisions of this Act and the rules made thereunder."

Section 5. Insertion of section 8A to Haryana Act of 22 1984

5. Insertion of section 8A to Haryana Act of 22 1984.- After section 8 of the principal Act, the following section shall be inserted, namely:-

"8A. Power of Registrar to decide certain matters.-Where in connection with the formation, registration of the admission of a member a question arises whether a person resides in the area of operation of the society or whether a person belongs to a particular class or occupation or such other matter pertaining to the eligibility of the person to become a member of the society, such question shall be decided by the Registrar ami his decision in this regard shall be final.".

Section 6. Insertion of section 9A to Haryana Act of 22 1984

6. Insertion of section 9A to Haryana Act of 22 1984.- After section 9 of the principal Act, the following section shall be inserted, namely:-

"9A Power to make bye-laws.- (1) If very co-operative society subject to the approval of the Registrar, away make its own bye-laws consistent with provisions of this Act and the rules made thereunder.

(2) In particular and without prejudice to the generality of the foregoing power, such bye-laws may provide for all or any of the following matters, namely:-

(i) the name, address and area of operation of the society;

(ii) the objects of the society;

(iii) the services to be provided to its members.

(iv) the eligibility for obtaining membership;

(v) the procedure for obtaining membership;

(vi) the conditions for continuing as member;

(vii) the procedure for withdrawal of membership;

(viii) the transfer or membership;

(ix) the procedure for expulsion from membership;

(x) the rights and duties of the members;

(xi) the nature and amount of capital of the society;

(xii) the manner in which the maximum capital to which a single member can subscribe;

(xiii) the sources from which the funds may be raised by the co-operative society;

(xiv) the purpose for which the funds may be applied;

(xv) the manner of allocation or disbursement of net profits of the co-operative society;

(xvi) the constitution of various reserves;

(xvii) the manner of convening general meetings and quorum thereof than those provided under this Act;

(xviii) the procedure for notice and manner of voting, in general and other meetings;

(xix) the procedure for amending the bye-laws;

(xx) the number of members of the Board of Directors/Managing Committee not exceeding twenty-one;

(xxi) the tenure of directors, chairperson and oilier office bearers of the society, not exceeding five years;

(xxii) the procedure for removal of members of the Board of Directors/Managing Committee and for filling up of vacancies;

(xxiii) the manner of convening Board/Committee meetings, its quorum member of such meetings in a year and the venue of such meetings;

(xxiv) the powers and functions of the Chief Executive;

(xxv) the manner of imposing penalty;

(xxvi) the appointment, rights and duties of auditors and procedure for conduct of audit:

(xxvii) the authorization of officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society,

(xxviii) the terms on which a co-operative society may deal with persons other than members;

(xxix) the terms on which a co-operative society may associate with other co-operative societies;

(xxx) the terms on which a co-operative society may deal with, organizations, other than co-operative societies;

(xxxi) the rights, if any, which the co-operative society may confer on any other co-operative society or federal co-operative and the circumstances under which such rights may be exercised by the federal co-operative;

(xxxii) the educational and training programmes to be conducted by the co-operative society;

(xxxiii) the principal place and other places of business of co-operative society;

(xxxiv) the minimum level of services to be used by its members;

(xxxv) any other matter which may be prescribed.".

Section 7. Substitution of section 10 to Haryana Act of 22 1984

7. Substitution of section 10 to Haryana Act of 22 1984.- For section 10 of the principal Act the following section shall be scheduled, namely:-

"10. Amendment of bye-laws.-(1) No amendment of any bye-laws of a co-operative society shall be valid, unless such amendment bus been registered under this Act.

(2) The amendment to the bye-laws of a co-operative society shall be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.

(3) No such resolution shall be valid unless fifteen clear days notice of the proposed amendment has been given to the members.

(4) In every case in which a co-operative society proposes to amend its bye-laws an application to register such amendments shall be made to the Register such ??? shall be made to the Register together with-

(a) a copy of the ??? referred ??? sub-section (2);

(b) a statement containing, the particular indicating-

(i) the date of the general meetings it which the amendment to the bye-laws was made:

(ii) the number of days' notice given to convene the general meetings.

(iii) the total number of members of the co-operative society;

(iv) the quorum required for such meeting;

(v) the number of members present at the meeting;

(vi) the number of members who voted in such meeting;

(vii) the number of members who voted in favour of such amendment to bye-laws;

(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together will reasons justifying such amendment:

(d) four copies of the text of the bye-laws incorporating therein the proposed amendment signed by an officer duly authorized in this behalf by the general body;

(e) a copy of the notice given to the members and the proposal to amend the bye-laws:

(f) a certificate signed by the person who presided at the general meeting ??? that the ??? specified in sub-sections (2) and (3) and the bye-laws had been followed:

(g) any other particular which may be required by the Registrar in this behalf.

(5) Every such, application shall be made within sixty days from the date of the general meeting at which such amendment to the bye-laws was passed.

(6) If on receipt of application under sub-section (5), the Registrar is satisfied that the proposed amendment-

(a) is not contrary to the provisions of this Act or the rules;

(b) does not conflict with co-operative principles; and

(c) will promote the economic interests of the ??? of the co-operative society, he may register the amendment within a period of three months from the date of receipt thereof by him.

(7) The Register shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him within a period of fifteen days from the date of registration thereof and such certificate shall be conclusive evidence that the amendment has been duty registered.

(8) ??? this ??? of the bye-laws of a co-operative society, he shall communicate ??? refusal together with the reasons thereof to the ??? in the manner prescribed within a period of ninety days from the date of receipt of application:

Provided that if the application for registration is not disposed of within a period of three months specified in sub-section (6) or the Registrar fails to communicate the order of refusal specified in sub-section (8), the application shall be deemed to have been accepted for registration and the Registrar shall issue registration certificate in accordance with the provisions of this Act.

(9) An amendment of the bye-laws of a co-operative society shall, unless is expressed to come into operation on a patrics day come into force on the day on which it is registered.".

Section 8. Amendment of section 13 to Haryana Act of 22 1984

8. Amendment of section 13 to Haryana Act of 22 1984.- For sub-section (1) of section 13 of the principal Act, the following sub-section shall be substituted, namely:-

"(1) A co-operative society may by a resolution passed by a two-third majority of the members present and voting at a general meeting of the society.

(a) transfer its assets and liabilities in whole or in pan in any other co-operative society;

(b) divide itself into two or more co-operative societies:

Provided that where the Government has assisted the society by way of share capital contribution. The society shall take the prior approval of the Registrar.".

Section 9. Amendment of section 16 to Haryana Act of 22 1984

9. Amendment of section 16 to Haryana Act of 22 1984.- For clause (d) of section 16 of the principal Act the following clause shall be substituted, namely:-

"(d) such class or classes of persons or association of persons, corporate bodies, firms or joint stock companies, as provided in the bye laws of the society:".

Section 10. Amendment of section 17 to Haryana Act of 22 1984

10. Amendment of section 17 to Haryana Act of 22 1984.- In section 17 of the ??? words "unless such society has been exempted by the Registrar by a general or special order" shall be added at the end.

Section 11. Amendment of section 18 to Haryana Act of 22 1984

11. Amendment of section 18 to Haryana Act of 22 1984.- In sub-section (1) of section 18 of the principal Act,-

(i) after the word "person", the words "or sell-help group" shall be inserted;

(ii) after sub-section (1), the following explanation shall be inserted, namely:-

"Explanation.- For the purposes of this sub-section "self-help group" means and ??? a group of ??? for their economic development.".

Section 12. Amendment of section 22 to Haryana Act of 22 1984

12. Amendment of section 22 to Haryana Act of 22 1984.- In section 22 of the principal Act,-

(i) for the sign "." existing at the end, the sign ":" shall be substituted; and

(ii) the following proviso and explanation shall be added at the end, namely;-

"Provided that no transfer shall be allowed unless such shares have been held by the member at least for a period of two years.

Explanation.- For the purposes of this section "capital" refers to the capital owned by members in their individual capacity in the society's funds.".

Section 13. Amendment of section 25 to Haryana Act of 22 1984

13. Amendment of section 25 to Haryana Act of 22 1984.- In sub-section (3) of section 25 of the principal Act,-

(i) in clause (b), the word "or" existing at the end shall be omitted; and

(ii) for clause (c), the following clauses and the proviso thereunder shall be substituted, namely:-

"(c) review of the performance of the preceding year;

(d) review of the state of affairs of the society including list of defaulters along with amount of default;

(e) creation of specific reserves and other funds and utilization thereof;

(f) consideration of less, of employees who are relatives of office bears of the society:

(g) conduct of ??? of the managing committee, when due;

(h) amendment of bye-laws:

(i) consideration of any other ??? with bye-laws.

Provided that nothing in this sub-section shall affect any powers conferred on a committee or any office bearer of a society under the rules or the bye-laws framed under this Act.".

Section 14. Amendment of section 26 to Haryana Act of 22 1984

14. Amendment of section 26 to Haryana Act of 22 1984.- After sub-section (2) of section 26 of the principal Act, i.e. following sub-section shall be added at the end, namely:-

"(3) If a general body meeting is not held within the period as specified in sub-section (3) of section 25 or the requirements of sub-section (1) of this section are not complied with, the Registrar shall, after giving an opportunity of being heard, declare the members of the committee disqualified for continuing as members of such committee and for being cleared as members of the committee of any society, for a period of five years and if the default is committed by an office bearer or an employee ??? heart impose on him a line not exceeding ten ???.

Section 15. Amendment of section 27 to Haryana Act of 22 1984

15. Amendment of section 27 to Haryana Act of 22 1984.- In section 27 of the principal Act,-

(i) in sub-section (1)-

(a) for the sign "." existing at the end, the sign ":" shall be substituted;

(b) the following proviso shall be added, namely:-

"Provided that such suspension shall not exceed a period of six mouths.".

(a) an sub-section (2) in the existing proviso-

(a) for the sign "." existing at the end, the sum shall be substituted;

(b) the following proviso shall be added at the end, namely:

"Provided further that no such proceedings under this section shall be initiated after a period of six years from the date of passing of the resolution. However, any proceedings pending under this section in any court or before any authority shall continue as if the provisions of the Haryana Co-operative Societies (Amendment) Act, 2006, were not passed.".

Section 16. ??? 28 to Haryana Act of 22 1984

16. ??? 28 to Haryana Act of 22 1984.- In section 28 of the principal Act.-

(I) in sub-section (1), for sign "." ??? the end the sign "." shall be substituted.

(II) the following provisos shall be added, namely:-

"Provided that at least one member belonging to the Scheduled Caste and one woman member shall also be represented through election in every committee of a co-operative society in the manner prescribed:

Provided further that at least one member belonging to backward class shall also be represented through election in the committee, if their number is ten percentum or more of the total membership of the society in the manner prescribed."

(III) for sub-section (3), the following sub-section shall be substituted, namely:-

"(3) The committee of each society shall before the expiry of the term of its committee arrange for the election of a committee in accordance with its bye-laws failing which the Registrar shall arrange to hold such elections within period of ninety days after the expiry of the term of the committee at the cast of the society and the cleared members of the outgoing or ??? shall be debarred from contesting the elections of the ??? of any co-operative society for a period of five years from the ??? of the expiry of the term of the outgoing committee.

Provided that no such order shall be passed by the Registrar unless an opportunity of being heard has been given.".

Section 17. Amendment of section 29 to Haryana Act of 22 1984

17. Amendment of section 29 to Haryana Act of 22 1984.- In section 29 of the principal Act,-

(i) in the marginal heading, the words and sign "and co-option" shall be omitted;

(ii) in sub-section (1)-

(a) in clause (b), for sign "." existing at the end, the sign ";" shall be substituted.

(b) after clause (b), the following provisos shall be added, namely:-

"Provided that in cast; of a co-operative bank the share capital contribution by the Government shall not exceed twenty-five percent of the paid up share capital and the nomination shall be limited to one member only:

Provided further that in case of a co-operative bank two professional directors leaving experience as specified by the Reserve Bank of India shall he co-opted. in the committee if not already elected."; and

(iii) sub-section (4) shall be omitted.

Section 18. Amendment of section 31 to Haryana Act of 22 1984

18. Amendment of section 31 to Haryana Act of 22 1984.- In sub-section (1) of section 31 of the principal Act.-

(i) in the proviso-

(a) after the words and signs "Co-operative Department, Haryana,", the words "or any other professional having qualifications and experience as may be prescribe" shall be inserted; and

(b) for the sign "." existing at the end, the sign ":" shall be substituted; and

(ii) after the first proviso, the following proviso shall be added, namely:-

"Provided further that in case of a co-operative bank, the appointment of Managing Director shall be ??? in accordance with the guidelines of the Reserve Bank of India."

Section 19. Amendment of section 33 to Haryana Act of 22 1984

19. Amendment of section 33 to Haryana Act of 22 1984.- In the third proviso to sub-section (1) of section 33 of the principal Act, for the words and sign "four years but not more than, a year at a time", the words "two years" shall be substituted.

Section 20. Amendment of section 34 to Haryana Act of 22 1984

20. Amendment of section 34 to Haryana Act of 22 1984.- In Section 34 of the principal Act,-

(i) in sub-section (1), for the words and figures "in accordance with the provisions of section 33" existing at the end the words ‘for a period of one year which any be extended by the Government for a further period of one year" shall be substituted,

(ii) for the existing proviso, the following, proviso shall be substituted, namely:-

"Provided that if the committee of a co-operative bank is superseded, the Registrar shall do so with the approval of the Reserve Bank of India. The period of suspension in case of a co-operative bank may extend upto three years with the concurrence of the Reserve Bank of India.".

Section 21. Insertion of section 36A in Haryana Act of 22 1984

21. Insertion of section 36A in Haryana Act of 22 1984.- After section 36 of the principal Act, the following section shall be inserted, namely:-

"36A. Functions of a federal co-operative.-(1) Subject to the provisions of this Act and any other law for the time being in force, a federal co-operative may discharge the function to facilitate the voluntary formation antidemocratic ??? co-operative societies as federal co-operative or co-operative based of, self-help and mutual aid.

(2) Without prejudice to the ??? of the provisions contained in sub-section (1), the federal co-operative may-

(a) ensure compliance of the co-operative principles;

(b) make model bye-laws and policies for consideration of its member co-operatives;

(c) provide specialized training, education and data-base information;

(d) undertake research, evaluation and assist in preparation of perspective development plans for its member co-operative;

(e) promote harmonious relations amongst member co-operative;

(f) help member co-operative to settle disputes among themselves;

(g) undertake business services on behalf of its member co-operative, if specifically, required by or under the resolution of the general body or the board, or bye-laws of a member co-operative;

(h) provide management development services to member co-operatives;

(i) evolve code of conduct for observance by a member co-operative,

(j) ??? viability norms for a member co-operative;

(k) provide legal aid and advice to a member co-operative;

(l) assist member co-operative, in organizing self-help; and

(m) develop market information system, logo brand promotion, quality control and technology op-gradation".

Section 22. Amendment of section 40 to Haryana Act of 22 1984

22. Amendment of section 40 to Haryana Act of 22 1984.- In section 40 of the principal Act,-

(i) in clause (b), the word "and" existing at the end shall be omitted;

(ii) in clause (c), for the sign "." exiting at the end, the sign and word ": and" shall be substituted;

(iii) after clause (c), the following clause and proviso thereunder shall be added at the end, namely:-

"(d) the nominees of a member, if any:

Provided that every individual enrolled as a member in a primary society shall furnish his photograph, his permanent address and correspondence address to the society and shall communicate the change, if any, within a period of fifteen days of such change to the Registrar.".

Section 23. Amendment of section 45 to Haryana Act of 22 1984

23. Amendment of section 45 to Haryana Act of 22 1984.- In section 45 of the principal Act.-

(i) in sub-section (2), after the word "so Song as the society does not intimate", the words "within a period of fourteen days from the date of deduction" shall he inserted;

(ii) in sub-section (3), for the words "as arrears of land revenue" existing at the end, the words and figures "as per provisions of section 110 of this Act" shall be substituted; and

(iii) after sub-section (2), the following explanation shall be added at the end, namely:-

"Explanation.-‘employer’ shall include an officer disbursing salary.".

Section 24. Amendment of section 50 to Haryana Act of 22 1984

24. Amendment of section 50 to Haryana Act of 22 1984.- In section 50 of the principal Act, the following words shall be added the end namely:-

"The person so authorized may seek necessary help from police authority having jurisdiction in the area when need arises in seizing the record and property and the police shall provide the necessary assistance.".

Section 25. Amendment of section 63 to Haryana Act of 22 1984

25. Amendment of section 63 to Haryana Act of 22 1984.- For section 63 of the principal Act, the following section shall be substituted namely;-

"63. Restriction on borrowings.-(1) A co-operative society may receive deposits, raise loans and receive grants from external sources to such extent and under such conditions as may be specified in the bye-laws:

Provided that the total amount of deposits and loans received during any financial year shall not exceed ten times of the sum of subscribed share capital and accumulated reserves:

Provided further that while calculating the total sum of subscribed share capital and accumulated reserves, the accumulated losses shall be deducted.

(2) Subject to the provisions of sub-section (1), a co-operative society may accept funds or borrow funds for the fulfillment of its objects on such terms and conditions as are mutually contracted upon in the interest of the society.

(3) A co-operative society may issue non-convertible ??? or other ??? subject to the provisions of any law for the time being in force to raise resources for the fulfillment of its objects to the extent of twenty-five per cent of its paid up share capital.".

Section 26. Amendment of section 64 to Haryana Act of 22 1984

26. Amendment of section 64 to Haryana Act of 22 1984.- In the second proviso to sub-section (3) of section 64 of the principal Act.-

(i) for the sign "." existing at the end, the sign ":" shall be substituted;

(ii) the following proviso shall be inserted, namely:-

"Provided further that all loans advanced under short term, medium term and lone termed nation for which Reserve Bank of India/National Bank for Agriculture and Rural Development [NARARD] formulated the loan scheme, shall not require the approval of the Registrar.".

Section 27. Amendment of section 74 to Haryana Act of 22 1984

27. Amendment of section 74 to Haryana Act of 22 1984.- In sub-section (1) of section 74 of the principal Act,-

(i) for the sign "." existing at the end, the sign ":" shall be substituted;

(ii) the following proviso sale be added, namely:-

"Provided, however that the sale of the distrained property shall be subject to the confirmation by the Registrar.".

Section 28. Amendment of section 76 to Haryana Act of 22 1984

28. Amendment of section 76 to Haryana Act of 22 1984.- In sub-section (2) of section 76 of the principal Act, after the words "in the village", the words "or town" shall be inserted.

Section 29. Amendment of section 87 to Haryana Act of 22 1984

29. Amendment of section 87 to Haryana Act of 22 1984.- In section 87 of the principal Act.-

(I) in sub-section (1)-

(i) in clause (b), the word "and" shall be omitted;

(ii) in clause (c), for the sign "." existing at the end, the sign and word "; and" shall be substituted;

(iii) after clause (c), the following clause shall be added, namely:-

"(d) such profits may also be utilized for such purposes and in such percentage as may be prescribed.";

(II) after sub-section (2), the following explanation shall be added at the end, namely:

"Explanation.- (1) The net profits of a co-operative society shall be calculated by deducting from the gross profit for the year, all interest accused and accruing in relation to ??? which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under any law relating to payment of bonus for the time being in force, and equalization fund for such bonus, provisions for payment of income-tax and approved donations under the Income-tax Act, 1961 (43 of 1961), development rebate, provision for development fund, bad debt fund, price capital redemption fund, investment fluctuation fund, provision for retirement benefits to employees and after providing for or writing off bad debts and losses not adjusted against any fund created on; of profit.

(2) Society may add to the net profits for the financial year interest accrued in the preceding year, but actually recovered during, the current year.".

Section 30. Substitution of section 89 of Haryana Act of 22 1984

30. Substitution of section 89 of Haryana Act of 22 1984.- For section 89 of the principal Act, the following section shall be, substituted, namely:-

"89. Acquisition or disposal of properly.- No co-operative society other than the house building societies, marketing, and processing societies or the societies whose main object in the bye-laws is to create necessary ???, shall purchase, acquire, lease, sell any land or oilier immovable assets of the society except with the prior approval of lite Registrar."

Section 31. Amendment of section 95 to Haryana Act of 22 1984

31. Amendment of section 95 to Haryana Act of 22 1984.- in section 95 of the principal Act,-

(i) for sub-section (1), the following sub-section shall be substituted, namely.-

"(1) Every co-operative society shall get is accounts audited at least once in each year by a person authorised by the Registrar by general or special order in this behalf failing which the Registrar shall get the accounts of the society audited it the expense of the society:

Provided that the Registrar will make necessary arrangement of the audit of societies through his officers or other auditors duly authorized by him.";

(ii) after sub-section (7), the following sub-section shall be inserted, namely:-

"(7A)(i) The Register may be the accounts of a society audited by a chartered accountant in ??? with the guidelines approved by him. The remuneration of the chartered accountant shall be approved by the Registrar and the expenditure on this account shall be that oath of the funds of the society.

(ii) The audit of the co-operative banks may be conducted by me chartered accountant appointed by the Registrar.

(iii) The Registrar shall prepare a panel of qualified chartered accountants and fix the remuneration in lieu of audit fees. The Registrar shall also prepare the guidelines for these auditors as to make the audit more, meaningful and effective.

(iv) None of the following persons shall be qualified for appointment as a chartered accountant:-

(a) a body corporate;

(b) an officer or employee of the co-operative society;

(c) a person who is a member, or who is in the employment, or an officer or employee of the co-operative society;

(d) a person who is indebted to the co-operative society or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the co-operative society for an amount exceeding five thousand rupees.

(v) A person shall also not be qualified to appointment as a chartered accountant if be is by virtue of clause (ii) disqualified for appointment as a chartered account of any other body corporate or co-operative society.

(vi) if a chartered accountant becomes subject, after his appointment, to any of lite disqualification specified in clauses (ii) and (iii), he shall be deemed to have vacated his office as such.".

Section 32. Amendment of section 97 to Haryana Act of 22 1984

32. Amendment of section 97 to Haryana Act of 22 1984.- Existing section 97 of the principal Act shall be ??? us sub-section (1) thereof, and after sub-section (1) so renumbered, the following sub-section shall be added, namely:-

"(2) The apex society and the central society shall inspect every affiliated society annually and shall prepare report regarding their administrative functioning and financial management.".

Section 33. Amendment of section 101 to Haryana Act of 22 1984

33. Amendment of section 101 to Haryana Act of 22 1984.- In section 101 of the principal Act.-

(i) in sub-section (2), for the sign "." existing at the end, the sign ":" shall be substituted;

(ii) after sub-section (2), the following proviso shall be added at the end namely:-

"Provided that no surcharge proceedings shall be initiated under this section in respect of any act or omission in respect of a person ??? on which such act or ??? proceedings pending under this section in any court or before any authority shall continue as it the provisions of the Haryana Co-operative Societies (Amendment) Act, 2006, were not passed.".

Section 34. Amendment of section 102 to Haryana Act of 22 1984

34. Amendment of section 102 to Haryana Act of 22 1984.- In section 102 of the principal Act,-

(i) in sub-section of after the words "of a co-operative society", the words "other than a dispute of disciplinary action or dispute relating to service members in respect of a paid servant of a society" shall be inserted;

(ii) for sign "." existing at the end, the sign ":" shall be substituted; and

(iii) to sub-section (1), the following proviso shall be added, namely:-

"Provided that any proceedings pending; or concluded under section 101 shall not constitute a dispute touching the constitution, management or the business of the society.".

Section 35. Amendment of section 104 to Haryana Act of 22 1984

35. Amendment of section 104 to Haryana Act of 22 1984.- In sub-section (4) of section 104 of the principal Act, for the words "as means of land revenue", the words and figures "as or provisions of section 10 of this Act" shall be substituted.

Section 36. Amendment of section 105 to Haryana Act of 22 1984

36. Amendment of section 105 to Haryana Act of 22 1984.- In section 105 of the principal Act,-

(i) in sub-section (1), for the word and sign "after,", the words ant figures "after audit under section 95 or" shall be substituted;

(ii) after sub-section (4), the following sub-sections shall be added, a the end namely:-

‘(5) The winding up proceeding of a society shall be completed within a period of three years from the date of the order of the winding up, unless the period is extended by the Registrar:

Provided that the Registrar shall not extend the period exceeding one year for the first time and two years as a whole.

(6) Before taking action under sub-section (1) or sub-section (2) except where the society is brought under winding up process on application of members, the Registrar shall issue a notice to the concerned society and the financing institution, if any, and give a responsible opportunity to show cause as to why the society be not brought under winding up process.".

Section 37. Amendment of section 110 of ??? Act of 22 1984

37. Amendment of section 110 of ??? Act of 22 1984.- In section 110 of the principal Act,-

(i) in clause (b), for the sign and word "or", the sign "." shall be substituted; and

(ii) clause (c) shall be omitted.

Section 38. Amendment of section 114 of Haryana Act of 22 1984

38. Amendment of section 114 of Haryana Act of 22 1984.- for clause (c) of sub-section (2) of section 114 of the principal Act, the following clause shall be substituted, namely:-

"(c) if the decision or order was made by the Additional Registrar or Registrar or any person upon whom the powers of the Registrar were conferred under sub-section (2) of section 1 of this Act and not covered under clauses (a) and (b) above, to the Government; and".

Section 39. Amendment of section 115 of Haryana of Act 22 1984

39. Amendment of section 115 of Haryana of Act 22 1984.- In section 115 of the principal Act,-

(i) for the words and figures, "a party to a reference under section 102.", the words "an aggrieved party" shall be substituted;

(ii) after the words "of any proceedings", the words "under this Act and the rules framed thereunder" shall be inserted.

Section 40. Amendment of section 117 of Haryana of Act 22 of 1984

40. Amendment of section 117 of Haryana of Act 22 of 1984.- in section 117 of the principal Act.-

(i) in sub-section (1), for the words "one thousand rupees" and "one hundred rupees", the words "five thousand rupees" and "five hundred rupees" shall respectively be substituted;

(ii) in sub-section (2), for the words "one thousand rupees", the words "five thousand rupees" shall be substituted;

(iii) in sub-section (3), for the words "five hundred rupees", the words "five thousand rupees" shall be substituted;

(iv) in sub-section (4), for the words "one thousand rupees", the words "five thousand rupees" shall be substituted;

(v) in sub-section (6), for the words "two hundred rupees", the words "one thousand rupees" shall be substituted; and

(vi) after sub-section (6), the following sub-section shall be added at the end, namely:-

"(7) Any person who transfers the property which is subject to charge of the society with an intent to evade its sale or attachment, shall be punishable with fine which may extend to ten thousand rupees.

(8) Any person being a member of the ??? committee who fails to get the accounts audited in accordance with the provisions of section 95 without sufficient cause, shall be punishable with fine which may extend to ten thousand rupees:

Provided that an opportunity of being heard shall be provided before any order is passed under this section.".

Section 41. Substitution of section 119 of Haryana Act 22 1984

41. Substitution of section 119 of Haryana Act 22 1984.- for section 115 of the principal Act the following section shall be substituted, namely:-

"119. Address of society.-Every co-operative society registered under this Act shall have its bead office in the State of Haryana and shall have its address registered in the manner prescribed to which all notices and communications may be sent and shall send to the Registrar, notice of every change thereof within a period of thirty days of such change.".

Section 42. Substitution of section 123 of Haryana Act 22 1984

42. Substitution of section 123 of Haryana Act 22 1984.- For section 123 of the principal Act, the following section shall be substituted, namely:-

"123. Employees etc. to be public servants.-Any employee of a co-operative society discharging duties under the provisions of this Act or the rules made thereunder or any person appointed as liquidator or arbitrator shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860 (45 of 1860).".

Section 43. Addition of Schedule to Haryana Act 22 1984

43. Addition of Schedule to Haryana Act 22 1984.- In the principal Act, the following Schedule shall be added at the end, namely:-

"SCHEDULE

[see section 2(eb)]

1. Voluntary and Open Membership.-Co-operatives are voluntary organizations, open to all persons capable of using their services and willing to accept the responsibilities of membership, without discrimination on basts of gender, social in equality, racial, political ideologies or religious consideration.

2. Democratic Member Control.-Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and decision making. Elected representatives of these Co-operative's are responsible and accountable to their members.

3. Member's Economic participation.- Members contribute equitably and control the capital of their Co-operative democratically. At least a part of the surplus arising out of the economic results would be the common property of the Co-operative. The remaining ??? could be utilized benefiting the members in proportion to their share in the Co-operative.

4. Autonomy and Independence.-Co-operatives are autonomous, self-help organizations controlled by their members. If co-operatives enter into agreement with other organizations including Government or raise capital from external sources, they do so on terms that ensure their democratic control by members and maintenance of Co-operative autonomy.

5. Education, Training and Information.-Co-operative provides education and training to their members, elected representatives and employees so that they can contribute effectively to the development of their Co-operatives. They also make the general public particularly young people and leaders ??? of nature and ??? of Co-operative.

6. Co-operation among co-operatives.-Co-operatives serve their members most effectively and strengthen the Co-operative movement, by working together through available local, regional, national and international structures.

7. Concern for community.-While focusing on the needs of their members, Co-operatives work for the sustainable development of communities through policies accepted by their members."