Constitution (Ninety-seventh Amendment) Act, 2011

243ZK. (I) Notwithstanding anything contained in any law made by the Election of Legislature of a State, the election of a board shall be conducted before the members of board. expiry of the term of the board so as to ensure that the newlyelected members of the boardassume officeimmediately on theexpiryofthe officeof members of the outgoing board. (2) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to a co-operative society shall vest in such an authorityor body, as may be provided by the Legislature of a State, by law: Provided that the Legislature of a State may, by law, provide for the procedure and guidelines for the conduct of such elections.

243ZL. (I) Notwithstanding anything contained in any law for the time Supersession and being in force, no board shall be superseded or kept under suspension for a suspension of board and period exceedingsix months: interim Providedthat the board may be superseded or kept under suspension in management. case- (i) of its persistent default; or (ii) of negligence in the performance of its duties; or (iii) the board has committed any act prejudicialto the interestsof the co-operativesociety or its members; or (iv) thereis stalemate inthe constitution or functions of the board;or (v) the authorityor body as provided by the Legislature of a State, by law, under clause(2) of article 243ZK, has failed to conduct elections in accordance with the provisions of the State Act: Provided further that the board of any such co-operative society shall not be superseded or kept under suspension where there is no Government shareholding or loanor financial assistance or anyguarantee bytheGovernment: Provided also that in case of a co-operative society carrying on the 10 of 1949 business of banking, the provisions of the Banking Regulation Act, i949 shall also apply: 4 THEGAZElTE OFINDIA EXTRAORDINARY lPARTII- - Provided also that in case of a co-operative society, other than a multi- State co-operative society,carrying on the business of banking, the provisions of this clause shall have the effect as if for the words "six months", the words "one year" had been substituted. (2) In case of supersession of a board, the administrator appointed to manage the affairs of such co-operative society shall arrange for conduct of electionswithin the periodspecifiedin clause (!) and handoverthe management to the elected board. (3) The Legislature of a State may, by law, make provisions for the conditions of service of the administrator. Audit of 243ZM. (!) The Legislature of a State may, by law, make provisionswith accounts of respect to the maintenance of accounts by the co-operative societies and the co-operative societies. auditing of such accounts at least once in each financial year. (2) The Legislature of a State shall, by law, lay down the minimum qualifications and experienceof auditorsand auditingfirmsthat shall be eligible for auditing accounts of the co-operative societies. (3) Every co-operative society shall cause to be audited by an auditor or auditing firms referred to in clause (2) appointedby the general body of the co- operative society: Provided that such auditors or auditing firms shall be appointed from a panel approved by a State Government or an authority authorised by the State Governmentin this behalf. (4) The accounts of every co-operativesociety shall be audited withinsix months of the close of the financial year to which such accounts relate. (5) The audit report of the accounts of an apex co-operative society, as may be defined by the State Act, shall be laid before the State Legislature in the manner, as may be provided by the State Legislature, by law. Convening of 243ZN. The Legislature ofa State may, by law, make provisions that the general body annual general body meeting of every co-operative society shall be convened rneeungs. within a period of six months of close of the financial year to transact the business as may be provided in such law. Right of a 243Z0 . (1) The Legislature of a State may, by law, provide for access to member to get every memberof a co-operativesocietyto the books, information and accounts information . of the co-operativesociety kept in regular transaction of its business with such member. (2) The Legislatureofa State may, by law, make provisionsto ensure the participation of members in the management of the co-operative society providing minimum requirement of attending meetings by the members and utilising the minimum level of services as may be provided in such law. (3) The Legislature of a State may, by law, provide for co-operative education and training for its members. . Returns. 243ZP. Everyco-operativesocietyshall file returns, within six months of the close of every financial year, to the authority designated by the State Government includingthe following matters,namely:- (a) annual report of its activities; (b) its audited statement of accounts; (c) plan for surplus disposal as approved by the general body of the co-operative society; (d) list of amendments to the bye-laws of the co-operative society, if any; SEC. I] THEGAZEITE OF INDIA EXTRAORDINARY 5 (e) declarationregardingdate of holding of its generalbody meeting and conduct of elections when due; and (j) any other information required by the Registrar in pursuance of any of the provisions of the State Act.

243.ZQ. (l) The Legislature ofa Statemay, by law,makeprovisionsforthe Offences and offences relating to the co-operative societies and penalties for such offences. penalties . (2) A law made by the Legislature of a State under clause (1) shall include the commission of the following act or omission as offences, namely:- (a) a co-operative society or an officer or member thereof wilfully makes a false return or furnishes false information, or any person wilfully not furnishes any information required from him by a person authorised in this behalf under the provisions of the State Act; (b) any person wilfully or without any reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of the State Act; (c) any employer who, without sufficient cause, fails to pay to a co- operative society amount deducted by him from its employee within a period of fourteen days from the date on which such deduction is made; (d) any officer or custodian who wilfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a co-operative society of which he is an officer or custodian, to an authorised person; and (e) whoever, before, during or after the election of members of the board or office bearers, adopts any corrupt practice.

243ZR.Theprovisions of thisPartshallapplyto themulti-State co-operative Application to societies subject to the modification that any reference to "Legislature of a multi-State co- State", "State Act" or "State Government" shall be construed as a reference to operative societies. "Parliament", "CentralAct" or "the Central Government" respectively.

243ZS. The provisions of this Part shall apply to the Unionterritories and Application to shall, in their application to a Union territory, having no Legislative Assembly Union as if the references to the Legislature of a State were a reference to the territories. administrator thereof appointed under article 239 and, in relation to a Union territory having a LegislativeAssembly, to that Legislative Assembly: Provided that the President may, by notification in the Official Gazette, direct that the provisions of this Part shall pot apply to any Union territory or part thereof as he may specify in the notification.

243Z1. Notwithstanding anything in this Part, any provision of any law Continuance of relating to co-operative societies in force in a State immediately before the existing laws. commencement of the Constitution (Ninety-seventh Amendment) Act, 2011, which is inconsistent with the provisions of this Part, shall continue to be in force until amended or repealed by a competent Legislature or other competent authorityor untilthe expirationof one year from suchcommencement, whichever is less.'. Y.K. BHASIN, Secy. to the Govt. ofIndia. PRINTED BYDIRECTORATE OF PRINTING AT GOVERNMENT OF INDlAPRESS, MINTO ROAD, NEWDELHI AND PUBLISHED BYTHE CO~OLLER OF PUBLICATIONS, DELHI, 2012. GMGIPMRND-3823GI(S3)-16-01-2012.