JUDGMENT :

Nitin Jamdar, J.

Rule. Rule is made returnable forthwith. Respondents waive service. Writ petition is taken up for disposal.

2. The Petitioner is a Federal Society of the dairy societies in the district Kolhapur. The Petitioner has moved this writ petition under Article 226 of the Constitution of India to question the Test Audit initiated by the Respondent- State Government under the provisions of the Maharashtra Co-operative Societies Act, 1960. Respondent No.1 is the State. Respondent Nos.2 and 3 are the Joint Registrar and Deputy Registrar of the Co-operative Societies. Respondent No.4 is the Officer on Special Duty and Respondent No.5 is the Special Auditor Class-1. Respondent No.6- Shoumika Mahadik is the member of the Board of Directors of the Petitioner- Society.

3. The subject matter of this petition is a Test Audit order under the Maharashtra Co-operative Societies Act, 1960. The Act of 1960 is enacted to provide for the orderly development of the cooperative movement in the State of Maharashtra and to consolidate and amend the law relating to co-operative societies in the State. Chapter-VII deals with the management of the societies. Chapter- VIII, which is of relevance, provides for audit, inquiry, inspection and supervision of the cooperative societies. Section 75(2A) of the Act of 1960 mandates that every society shall appoint an auditor or auditing firm from a panel approved by the State Government on this behalf having such minimum qualifications and experience as laid down in section 81 of the Act . Section 81 deals with the audit of the cooperative societies. It provides that the co-operative society shall cause its accounts to be audited at least once in each financial year and also cause it to be completed within four months from the close of financial year to which such accounts relate by the auditor or auditing firm from a panel prepared by the Registrar and approved by the State Government or an authority authorised by it in this behalf. The auditor must possess required qualifications and experience as may be prescribed to be eligible for auditing accounts of societies. The audit report is to be placed before the annual general body meeting. The manner of preparation, declaration and maintenance of the panel of auditors and auditing firms by the Registrar is prescribed. The committee of every society is obligated to ensure that the annual financial statements like the receipts and payments or income and expenditure, profit and loss and the balance sheet, along with such schedules and other statements, are audited within four months of the closure of the financial year. The auditor's report should contain all particulars of the defects or the irregularities observed in the audit. The audit report should highlight accounting irregularities and their implications on the financial statements in detail with the corresponding effects on the profit and loss. The Report must specify the functioning of the committee and subcommittees of the societies to be checked and, if any irregularities or violations are observed or reported, duly fixing the responsibilities for such irregularities or violations. If the Registrar, under the Act of 1960, has reason to believe that there exists an element of fraud, misapplication of funds, manipulation of the accounts or that the 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 submit a report. 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 Registrar or the authorised person may carry out or cause to be carried out a Test Audit of the accounts of such society. The test audit shall include examining such items as may be prescribed and specified by the Registrar in