S. R. O. No. 1306/2025 WHEREAS, under sub-section (1) of section 28 or sub-section (3) of section 88 or sub-section (6) of section 89 of the Kerala Co-operative Societies Act, 1969 (21 of 1969), as the case may be, the general body of a society shall constitute a committee for a period of five years in accordance with the by
S.5 Registration with limited liability only.(1) A Cooperative society shall be registered only with limited liability;
Provided that this sub-section will not affect the rights and liabilities of societies with unlimited liability which are in existence at the time of commencement of this Act.
(2) The word "limited" or its equivalent in any Indian language shall be the last word in the name of a society registered under this Act with limited liability.
S.6 Application for registration of Cooperative societies.(1) An application for the registration of a Cooperative society shall be made to the Registrar in such forms as may be prescribed and the applicant shall furnish to him such information about the society as he may require.
(2) Every such application shall conform to the following requirements, namely:-
(a) the application shall be accompanied by three copies of proposed bye-laws of the society;
(b) where all the applicants are individuals, the number of applicants shall not be less than twenty-five each of such persons being a member of a different family
(c) the application shall be signed by every one of the applicant who is an individual 21B[as specified under clause (a) of sub-section (1) of section 16] and by a person duly authorised on behalf of the Government or any society or other body of persons which is an applicant.
Explanation.-- For the purpose of this clause, the expression "member of a family" me
S.7 Registration.(1) If the Registrar is satisfied-
(a) that the application complies with the provisions of this Act and the rules;
(b) that the objects of the proposed society are in accordance with section 4;
(c) that the area of operation of the proposed society and the area of operation of another society of similar type do not overlap;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; 4[x x x x]
(e) that the proposed society complies with the requirements of sound business 1[; and ]
5[(f) that the proposed credit societies have collected two lakhs and fifty thousand rupees and non-credit co-operative societies have collected one lakh rupees as the minimum share capital;
he may register the society and its bye-laws within a period of sixty days from the date of receipt of the application:
Provided
S.8 Registration Certificate.24A[(1)] Where a Cooperative society is registered under this Act, the Registrar shall issue a certificate of registration signed and sealed by him, which shall be conclusive evidence that the said society is duly registered under this Act.
24B[(2) Notwithstanding anything contained in sub-section (1), where the Registrar is satisfied that the original registration certificate is irrecoverably lost and a duplicate certificate could not be issued as the files or records regarding the registration of the co-operative society was lost, after registration, the Registrar shall issue a certificate stating the registration number and date of registration of a co-operative society, on the basis of the details available in the audit certificate and the records available with the Registrar, signed and sealed by him, which shall be conclusive proof that the said society is duly registered and it shall be treated as a certificate of registration.]
S.1[ 8A Affiliation to Apex society.(1) Every Primary Cooperative Society or Central Cooperative Society may within such time and in such manner, as may be prescribed, apply for affiliation to the concerned Apex society or Central Society as the case may be.
(2) Where the Apex Society or Central Society does not, within 3[forty five days] from the date of receipt of the application for affiliation, determine whether such affiliation should be given or not, such affiliation shall be deemed to have been given to the applicant society from the date on which the said period of 3[forty five days] expires.
(3) When the Apex or Central Society, as the case may be, rejects an application for affiliation under sub-section (1), the aggrieved society may file an appeal before the Registrar against such rejection within thirty days from the date of receipt of the order of rejection and the Registrar shall dispose the appeal within sixty days from the date of appeal.]
2[(4) Not
S.9 Cooperative Societies to be bodies corporate.The registration of a society shall render it a body corporate by the name under which it is registered, having perpetual succession and a common seal and with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted.
25A[Provided that the Government and the Registrar shall have power to regulate 25B[x x x x] the working of a society for the economic and social betterment of its members and the general public.]
S.25C[ 9A Publication of name by a co-operative societyEvery co-operative society,--
(a) shall paint or affix its name, register number and the address of its registered office and keep the same painted or affixed in conspicuous position, in letters easily legible to members in vernacular language and in English language, on the outside of every office or place in which its business is carried on;
(b) shall have its name engraved in legible characters on its seal with common emblem; and
(c) shall have its name and address of its registered office, mentioned in legible characters in all its business letters in all its bill heads and letter paper, and in all its notices and other official publications, and also have its name so mentioned in all bills of exchange, hundies, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the co-operative society.]
S.10 Change of Name of Society.(1) A society may, by an amendment of its bye-laws, change its name.
(2) Where a society changes its name, the Registrar shall enter the new name in the register of Cooperative societies in the place of the former name and shall amend the certificate of registration accordingly.
(3) The change of name of a society shall not affect any rights or obligations of the society or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the society by its former name may be continued or commenced by its new name.
S.11 Change of liability.(1) Subject to the provisions of this Act and the rules a society may, by an amendment of its bye-laws, change the form or extent of its liability.
(2) When a society has passed a resolution to change the form or extent of its liability it shall give thereof in writing to all its members and creditors and notwithstanding the provisions of S.24 or any bye-laws or contract to the contrary, any member or creditor shall, during a period of two months from the date of service of notice upon him, have the option of withdrawing his shares, deposits of loans, as the case may be.
(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have given his assent to the change.
(4) an amendment of the bye-laws of a society changing the form or extent of its liability shall not be registered or take effect until either-
(a) the assent thereto all members and creditors has been given or deemed to h
S.12 Amendment of bye-laws of a society.--(1) No amendment to any bye-law of a society shall be valid unless such amendment has been registered under this Act.
(2) The provisions of section 7 specifying the conditions to be satisfied before registration of bye-laws of a society by the Registrar shall, mutatis mutandis, apply also to the registration of amendments to bye-laws;
Provided that the Registrar shall before registering an amendment of any bye-law consult-
(a) The State Cooperative Union if the bye-laws to be amended are that of an Apex society or a Central society; or
(b) The circle Cooperative union if the bye-laws that are to be amended are that of any other society; and
(c) The financing bank if the society is indebted to the financing bank.
(3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate of registration signed and sealed by him, and such certificate shall be conclusive evidence that the am
S.13 When amendment of bye-laws come into force.An amendment of the bye-laws of society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.
S.26A[ 13A Subject matter of Bye-lawsEvery co-operative society shall make its bye-laws consistent with the provisions of this Act and rules and no provision in the bye-laws of a co-operative society shall be contrary to the provisions of the Act and the Rules.]
S.14 Amalgamation,3[merger,] transfer of assets and liabilities and division of societies.(1) A society may, 4[with the prior approval of the Registrar,] 1[x x x x] by a resolution passed by a 5[simple] majority of the members present and voting at a general body meeting of the society;
(a) transfer its assets and liabilities in whole or in part to any other society;
(b) divide itself into two or more societies.
(2) Any two or more societies may 1[x x x x] 6[with the prior approval of the Registrar,] by a resolution passed by a 5[simple] majority of the members present and voting at a general body meeting of each such society, amalgamate themselves and form a new society
7[(2A) Notwithstanding anything to the contrary contained in any other law in force or in the rules or in the bye-laws of any society, one or more societies may merge with any other society by a resolution passed by simple majority at the general body meeting of each such society:
S.26D[ 14A Provisions regarding transfer of assets and liabilities of District Co- operative Banks to the Kerala State Cooperative Bank.--(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, the District Cooperative Banks may by a resolution passed by a simple majority of the members present and voting at the special general body meeting of the members, transfer its assets and liabilities in whole to the Kerala State Cooperative Bank and such transfer shall take effect from the date on which the Registrar approves the resolution.
(2) The resolution shall contain particulars of the assets and liabilities to be transferred.
(3) When a District Cooperative Bank has passed any such resolution, under sub- section (1), it shall give notice thereof in writing to all its members within seven days from the date of resolution, notwithstanding anything contained in the provisions of Section 24 or any rules or any bye-laws and sub-rules or any contract to the contrary, any member shall, within a period of thirty days from the date of issuance of th
S.1[ 2[14AA] Promotion of subsidiary institutions for the economic welfare of members(1) A co-operative society may by a resolution passed at general body meeting by a majority of members present and voting, promote, one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects with the prior approval of Registrar.
(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as the general body of the co-operative society deems its existence necessary; Provided that a co-operative society, while promoting such a subsidiary institution shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects to such subsidiary institutions.
Explanation.-- For the purpose of this section,--
(a) An institution shall be deemed to be a subsidiary institution where the co-operative society,--
(i) controls the management or board of directors or members of governi
S.1[ 14B Partnership of co-operative societies(1) Any two or more co-operative societies with prior permission of the Registrar, may by resolution passed by the majority of the members present and voting at a general body meeting of each of such co-operative societies, may enter into partnership to carry out any one or more specific business. Written notice of the general body meeting shall be given to each member before fifteen clear days of such meeting.
2[(1A) Detailed project report for the formation of such partnership of co-operative societies shall be prepared by the societies concerned and the same shall be submitted to the general bodies of such societies for approval.
(1B) The project report approved by the general bodies of the societies shall be submitted to the Government through the Registrar for the approval of the formation of such partnership of co-operative societies, in the manner as may be prescribed.
(1C) The Registrar shall conduct audit, inspection and verification of reco
S.15 Cancellation of registration certificate of societies in certain cases.(1) Where the whole of the assets and liabilities of a society are transferred to another society in accordance with the provisions of section 14, the registration of the first mentioned society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more societies are amalgamated into a new society in accordance with the provisions of section 14, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society and each amalgamating society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a society is divided into two or more societies in accordance with the provisions of section 14, the registration of that society shall stand cancelled on the registration of the new societies and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
S.16 Persons who may become members.(1) No person shall be admitted as a member of a society except the following, namely:--
(a) an individual--
(i) Who has attained the age of eighteen years;
Provided that this sub-clause shall not apply in the case of a society formed exclusively for the benefit of the students of any school or college.
(ii) Who is not of unsound mind;
(iii) Who is a resident within, or is in occupation of land in the are of operation of the society;
29AB[(ia) in the case of Youth Co-operative Societies, who has not attained the age of forty-five years:
Provided that on attaining forty-five years, the membership of such members shall cease to exist and they shall become associate members of the society.]
(b) any other society;
27[(ba) local self government]
(c) the Government; and
(d) any body of persons, whether incorpora
S.16A 29A[x x x x]
S.29AB[ 16B Eligibility conditions to continue to be an active member of Anand Pattern Milk Cooperative Societies.--(1) No member shall be eligible to continue to be an active member of an Anand Pattern Milk Cooperative Society if he/she-
(a) is not pouring milk not less than five hundred litres to the society for one hundred and eighty days during the preceding twelve months; and
(b) is not owning at least one milch cow or buffalo, by rearing them in a cattle shed or in a farm set up either in his/her own land or in a leased land, within the area of operation of the society.
(2) Only an active member referred to in sub-section (1) shall be eligible to become a member of the committee of an Anand Pattern Milk Cooperative Society and to continue as a member of such committee.]
S.17 Expulsion of members.(1) Any member of a society, who has acted adversely to the interest of the society 29B[or has failed to comply with the provisions of the bye-laws], may be expelled upon a resolution of the general body passed at a special meeting convened for the purpose by the votes of not less than two-thirds of the total number of members present and voting at the meeting.
(2) No member shall be expelled under sub-section (1) without being given an opportunity of making his representation.
(3) A copy of the resolution expelling a member shall be communicated to the member within a period of fifteen days from the date of passing of the resolution.
29C[(4) The expulsion from membership may involve forfeiture of shares held by the member.
(5) No member of the society who has been expelled under sub-section (1) shall be eligible for re-admission as a member of that society, for a period of one year from the date of such expulsion.]
S.18 Nominal or associate members.(1) A society may admit any individual as a nominal or associate member.
30[x x x x]
31[x x x x]
32[Provided 33[x x x x] that a Hospital Cooperative Society may admit any other society as nominal or associate member.
Explanation.-- The term 'Hospital Cooperative Society' shall have the same meaning as in the Explanation to the fourth proviso to sub-section (1) of S.16]
33AA[x x x x]
33AB[x x x x]
(2) Nominal or associate member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society or to be elected to the committee of a society.
33AC[(3) Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be eligible to enjoy various services including credit facilities provided by the societies and be subject to such liabilities of a member, as m
S.19 Member not to exercise rights till due payment made.1[(1)]No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society, as may be prescribed by the rules or the bye-laws.
2[(2) If the general body of a society has decided to enhance the share value, the right of a member to continue in membership will remain for a period of five years from the date of enhancement of value of share but shall be allowed to exercise his rights as a member only upon remitting the enhanced value of the shares held.]
S.19A 1[x x x x]
S.1[ 19B Right of a member to get informationEvery society shall keep open to inspection for its members, free of charge, at all reasonable times, at the registered address of the society.
(a) an up-to-date copy of the Kerala Cooperative Societies Act, 1969;
(b) an up-to-date copy of the Kerala Cooperative Societies Rules, 1969;
(c) an up-to-date copy of the bye-laws of the society;
(d) a register of members;
(e) the latest audited balance sheet of the society; 2[x x x x]
(f) the accounts of the society in so far as they relate to his or her transaction 3[; and]
4[(g) summary of defects included in the latest statutory audit report along with the rectification report approved by the Committee and general body of the society.]
S.1[ 20 Vote of members.Notwithstanding anything contained in any other provision of this Act or any other law, 2[every member] of a society shall have one vote in the affair of the society:
Provided that--
(a) a member admitted within sixty days immediately prior to the date of election shall not have the right to vote;
(b) a nominal or associate member shall not have the right to vote.
(c) where the Government is a member of the society, each person nominated by the Government on the committee of the society shall have one vote each including the right to vote for election of office bearers of the society;
(d) an ex-officio member on the committee of a society shall have one vote but shall not have right to vote for election 5[and removal]of office bearers of the society;
(e) in the case of an equality of votes, the chairman shall have and exercise a second or casting vote.
3[x x x x]
S.21 Manner of exercising vote.(1) Every member of a society shall exercise his vote in person.
(2) Notwithstanding anything contained in sub-section (1), a society or corporation or a statutory or non-statutory Board, committee or other body of persons which is a member of another society may, subject to any rules made under this Act, appoint one of its members to vote on its behalf in the affairs of that society.
S.1[ 22 Restriction on holding shares.(1) In any society no member other than the Government, any statutory or non-statutory Board, Committee or Corporation approved by the Government in this behalf or any other society, shall hold more than such portion of the total share capital of the society, not exceeding one fifth thereof, as may be prescribed:
Provided that the Government may, by notification in the gazette, specify in respect of any class of societies a higher maximum than one fifth of the share capital]
2[Provided further that the maximum amount of share capital that an individual member can hold in an Urban Co-operative Bank having Reserve Bank of India licence is limited to five per cent of the value of total paid-up share capital of the bank.]
S.23 Restriction on transfer of shares or interests.(1) The transfer of a share or interest of a member in the capital of a society shall be subject to such condition and restrictions as to the maximum holdings as are specified in section 22.
(2) No transfer by a member of his share or interest in a society shall be valid unless--
(a) the member has held such share or interest for not less than three years; and
(b) the transfer is approved by the committee of the society.
S.24 Restriction on withdrawal of shares.Subject to the other provisions of this Act, no withdrawal by a member of his share in a society shall be valid unless--
(a) the member has held such share for not less than three years; and
(b) such withdrawal is in accordance with the bye-laws of the society.
S.25 Transfer of interest on death of members.--(1) on the death of a member of a society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or the bye-laws or, if no person has been so nominated, to such person as may appear to the Committee to be the heir or legal representative of the deceased member.
Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society.
Provided further that nothing in this sub section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in a society.
(2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the rules or the bye-laws and the society shall
S.26 Liabilities of past member or of estate of deceased member.(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a society for the debts of the society as they existed-
(a) in the case of a past member, on the date on which he ceased to be a member.
(b) in the case of the deceased member, on the date of his death; shall continue for a period of 1[three] years from such date.
(2) Where a society is ordered to be wound up under section 71, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member, or death, as the case may be.
S.27 Final Authority in a Society.(1) Subject to the provisions of this Act, the rules and the bye-laws, the final authority of a society shall vest in the general body of the members:
Provided that nothing contained in this sub-section shall affect the exercise by the committee or any officer of a society of any power conferred on such committee or such officer by this Act or rules or the bye-laws.
(2) Notwithstanding anything contained in sub-section (1), where the area of operation of a society is not less than such area as may be prescribed, or where the society consists of such number of members as may be prescribed, the society may provide by an amendment of its bye laws for the constitution of a smaller body consisting of such number of members of the society as may be prescribed, elected in accordance with the rules (hereinafter referred to as the representative general body) to exercise all or any of the powers of the general body as may be specified in the bye-laws except the power to conduct
S.28 Appointment of committee.*(1) The general body of a society shall 39[constitute a committee], for a period 39A[of] 40[five years], in accordance with the bye-laws and entrust the management of the affairs of the society to such committee.
40A[Explanation.-- Notwithstanding anything contained in the bye-laws, for the purpose of calculating the term of committee, five years from the date of election will be taken to be the term of the committee.]
Provided that in the case of society registered after the commencement of this Act, the persons who have signed the application to register the society may appoint a committee to conduct the affairs of the society for a period of three months from the date of registration or for such further period as the Registrar may consider necessary; but the committee appointed under this proviso shall cease to function as soon as a committee has been constituted in accordance with the bye-laws:
41 S.46[ 28A Reservation for women members and members belonging to Scheduled Castes or Scheduled Tribes in the Committee.47[(1) Notwithstanding anything contained in this Act, the rules or the bye-laws, there shall be reserved in the committee of every society, 47A[three of the total seats for women members] and one seat for a member belonging to the Scheduled Castes or the Scheduled Tribes.]
(2) Nothing contained in sub-section (1) shall prevent the women members and members belonging to the Scheduled Castes or Scheduled Tribes from being elected to the non-reserved seats in the committee.]
48[(3) Where there is no representation of women or members belonging to Scheduled Castes or Scheduled Tribes in the committee of a Society including those of the societies formed exclusively for the benefit of women and for persons belonging to Scheduled Castes or Scheduled Tribes, the Government or the Registrar shall nominate women and persons belonging to Scheduled Castes or Scheduled Tribes to the elected committee from among the members of such societies.]
S.48A[ 28AA Reservation for persons with banking experience or professional qualification in the committees of Urban Cooperative BanksNotwithstanding anything contained in the bye-laws of any Urban Cooperative Bank, there shall be reserved not less than two seats in the committees of such banks for members who possess experience in banking or professional qualifications:
Provided that this section shall not be applicable to the committees of Urban Cooperative Banks constituted prior to the commencement of the Kerala Cooperative Societies (Amendment) Act, 2010.
Explanation:-For the purpose of this section,--
(i)"members who possess experience in banking" means members who are or were in paid service of a Commercial Bank, State Cooperative Bank, District Cooperative Bank, an Urban Cooperative Bank or a Service Cooperative Bank in the managerial cadre.
(ii)"professional qualifications" means membership in the Institute of Chartered Accountants of India or Masters Degree in Business Administration or Membership in the Institute of Cost and Works Accountants of India or Masters
S.48B[ 28AB] 49[Election and Removal of President, Vice President, etc.(1) A committee constituted under sub-s. (1) of S.28 shall elect from themselves a President, a Vice-President, a Treasurer or any other officer, by whatever name he is designated in the manner as may be prescribed.
(2) A committee shall remove from office the President, Vice- President or the Treasurer or any other officer of the committee 49A[or a delegate of the society who has been appointed by the committee] if a motion expressing want of confidence in any of all of them is carried with the support of the majority of the members of such committee in accordance with the procedure as may be prescribed.]
48BA[Notwithstanding anything contained in this Act or the rules made there under or the bye-laws of a Regional Cooperative Milk Producers' Union or in any other law, judgement or Decree or Orders of any Court or Tribunal, for the time being in force, no President of an Anand Pattern Milk Cooperative Society shall be eligible to hold office as P
S.50[ 28B State Cooperative Election Commission.--50A[(1) Notwithstanding anything contained in this Act or in the rules, the Government shall by notification in the Gazette, constitute a State Cooperative Election Commission for the superintendence, direction and control of the preparation of electoral rolls and for the conduct of all elections to co-operative societies 50BC[, the state co-operative union and the circle co-operative unions] including election to the President/Vice President and Representative General Body.]
50AA[x x x x]
50B[(2) The State Cooperative Election Commission shall consist of not more than three members, one among them shall be the State Chief Cooperative Election Commissioner and others shall be Commissioners. The State Chief Cooperative Election Commissioner shall be an officer not below the rank of 50BD[Special Secretary to Government, Law Department]. The Commissioners shall be persons, who are or have been Officers of the Departme
S.29 Annual general body meeting.--(1) A general body meeting of a society shall beheld 50C[within a period of six months of close of the financial year] for the purpose of:--
(a) approval of the budget with reference to the programme of the activities of the society prepared by the committee for the ensuing year;
(b) election, if any, in the prescribed manner of the members of the committee other than nominated members;
(c) consideration of the audit report 50D[and the report and follow up action of the committee thereon] and the annual report;
50E[(ca) review of operational deficit/loss, if any, and programme to reduce such deficit; or loss.
(cb) approval of the programme of activities of the society prepared by the committee for the ensuing year;
(cc) review of annual report and 50G[audited accounts] of any subsidiary-organisation, if any;
(cd) amendment of bye-laws;
S.30 Special general body meeting.--(1) The committee of a society may at any time, call a special general body meeting of the society and shall call such meeting within one month after receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be prescribed.
(2) If a special general body meeting of a society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorised by him in this behalf shall have power to call such meeting and that meeting shall be deemed to be a meeting called by the committee.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Registrar or any person authorised by him in this behalf may, at any time, call a special general body meeting of the society in such manner and at such time and place within the area of its operation as he may direct and such meeting shall be deemed to be a meeting called by the co
S.51[ 31 Nominees of Government on committee of an apex or a Central society.--(1) Where the Government--
(a) have subscribed to the share capital of an apex or a central society; or
(b) have assisted indirectly in the formation or augmentation of the share capital of an apex or a central society; or
(c) have guaranteed the repayment of principal and payment of interest on debentures issued by an apex or a central society; or
(d) have guaranteed the repayment of principal and payment of interest on loans and advances to an apex or a central society;
51A[the Government or any other authority shall have the right to nominate not more than two persons to the committee of an Assisted Apex or Central Society]
(2) A person nominated to the committee of an apex or a Central society under sub-section (1) shall hold office during the pleasure of the Government or the specified authority, as the case may be.
51B[(2A) The person nominated under sub-section (1) shall not
S.32 Supersession of Committee.--52[(1) If the Registrar, after an inquiry by himself or through his subordinates or on a report of the financing bank, or the Vigilance and Anti Corruption Bureau of the Government or the Vigilance Officer or other wise is satisfied that the committee of any society,--
(a) persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or bye-laws or does anything which is prejudicial to the interests of the society; or
(b) willfully disobeys or fails to comply with any lawful order or direction issued under this Act or the rules; or
53A[(ba) willful disobedience of execution of orders etc., referred to in section 76 of the Act ; or]
(c) makes any payment contrary to this Act or the rules or the bye-laws or causes any loss or damage to the assets of the society by breach of trust of willful negligence; or
52A[(d) misappropriates or des
S.33 Appointment of new committee or administrator on failure to constitute committee, etc.-(1) Where the term of office of a committee has expired and a new committee has not been constituted, or 54[where a no-confidence motion is passed by the general body against the existing committee or where the existing committee resigns enbloc or where vacancies occur in the committee either by resignation or other wise and the number of remaining members cannot constitute the quorum for the meeting of the committee, or where the committee fails to hold its regular meeting consecutively for six months or where the Registrar is satisfied.]
(a) that a new committee cannot be constituted before the expiry of the term of office of the existing committee; or
54A[(aa) there is stalemate in the constitution or functions of the committee.]
55[(b) that a new committee is prevented from entering upon office or a new committee fails to enter upon office, on the date on which the term of office of the existing commit
S.34 Securing possession of Records, etc.(1) If the committee of a society is reconstituted at a general meeting of the society or the committee of a society is removed by the Registrar under section 32 or a new committee or Administrator or Administrators is or are appointed under section 33 or if the society is ordered to be wound up under section 71 and the outgoing members of the committee refuses to hand over charge of the records and property of the society to the new committee or Administrator or Administrators or the liquidator, as the case may be, or if an outgoing president or secretary who is the custodian of the records and property to the society refuses to hand over charge of the records and properties of the society to his successor, the new committee or administrator or administrators or the liquidator or the President or Secretary may with the previous sanction of the Registrar apply to the Magistrate within whose jurisdiction the society functions, for securing the records and properties of the society. <
S.1[ 34A Maintenance of accounts and adoption of common software.--(1) All co-operative societies shall prepare and keep the books of accounts and financial statements in the form in the generally accepted accounting principle for preparing profit and loss account and balance sheet, which enable double entry book keeping system, as may be prescribed.
(2) The Registrar shall issue necessary guidelines for installation, maintenance and use of common software to all co-operative societies, as may be prescribed.
(3) A technical cell with professional and technical team as prescribed shall be established in the office of the Registrar, in consultation with the Government, to inspect the security, reliability, data protection and other aspects connected with software and hardware.]
S.35 First charge of society on certain assets.(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a society by any member or past member or deceased member shall be a first charge--
(a) upon the corps or other agricultural produces of such member for the raising of which the loan was taken from the society by such member; and
(b) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery, or raw materials for manufacture, supplied or purchased in whole or in part out of any loan given, the society, or on any article manufactured from raw materials so supplied or purchased.
(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the society which holds the charge.
(3) Notwithstanding anything c
S.36 Charge on land owned or held by members borrowing loans from certain Societies.Notwithstanding anything contained in this Act or any other law for the time being in force;
(i) a member who makes an application for a loan to a society of which the majority of the members are agriculturists shall, if he owns any land or holds any land as a tenant entitled to fixity of tenure, make a declaration in the prescribed form, which shall state that the applicant thereby creates a charge on the land owned by him or on his interest in the land held by him as tenant and specified therein, for the payment of the amount of the loan which the society may make to the member on the application and future loans if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;
(ii) a declaration made under clause (i) may be varied or cancelled at any time by the member, with the previous written permission of the society in favour of which such charge has been created;
(iii) no member shall alie
S.62A[ 36A Charge on movable or immovable property of borrower by creating Gehan.--Notwithstanding anything contained in any other provisions of this Act, charge on movable or immovable property of a borrower in favour of the 62BA[Kerala State Cooperative Bank] 62BB[x x x x] or a Primary Agricultural Credit Society or Primary Housing Society 62B[or an Urban Cooperative Bank or any Primary Cooperative Bank or any Primary Cooperative Societies dealing with credit activities] may be created by Gehan in respect of which the provisions of sections 62BC[9 to 15 (both inclusive) and 19 to 28 (both inclusive)] of the Kerala State Cooperative Agricultural and Rural Development Banks Act, 1984 (20 of 1984), as amended from time to time, shall apply with the modification of substituting the words "62BA[Kerala State Cooperative Bank] 62BB[x x x x]", "Primary Agricultural Credit Society or Primary Housing Society", 62B[or and Urban Cooperative Bank or any Primary Cooperative Societies dealing with cr
S.37 Deduction from salary to meet society's claim in certain cases.--(1) Notwithstanding anything contained in any law for the time being in force, a member of a society, may execute an agreement in favour of the society providing that his employer or the officer disbursing his salary or wages shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debts or other demand owing by the member to the society.
(2) On the execution of such an agreement the employer or the officer disbursing the salary or wages of any such member as is referred to in sub-section (1) shall, if so required by the society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within seven days from the date of the deduction.
62C[Provided that this sub-section sh
S.38 Charges and set off in respect of shares or interest of members in the capital of a society.A society shall have a charge upon the share or interest in the capital and on the deposits of a member or past member or deceased member and on any dividend, bonus or profit payable to a member or past member or the estate of a deceased member in respect of any debt or outstanding demand owing to the society and may set-off any sum credited or payable to a member, past member or the estate of a deceased member in or towards payment of any such debt or outstanding demand:
Provided that no financing bank to which a society is affiliated shall have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society.
S.39 Shares or interest or reserve fund not liable to attachment.(1) Subject to the provisions of section 38, the share or interest of a member in the capital of a society shall not be liable to attachment or sale under any decree or order of a Court in respect of any debt or liability incurred by him and a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or interest.
(2) The reserve fund of a society invested by such society in accordance with the provisions of section 57 shall not be liable to attachment under any decree or order of a Court in respect of any debt or liability incurred by the society.
S.40 Exemption from certain taxes, fees and duties.(1) The Government may, by notification in the Gazette, remit in respect of any class of societies:-
(a) the stamp duty chargeable under the Kerala Stamp Act, 1959 (17 of 1959), in respect of any instrument executed by or on behalf of a society or by an officer or member thereof and relating to the business of such society, or any class of such instruments, or in respect of any award or order made under the Act, in cases where, but for such remission the society, officer or member, as the case may be, would be liable to pay such stamp duty;
(b) any fee payable under any law for the time being in force relating to the registration of documents or Court fees.
(2) The Government may, by notification in the Gazette, exempt any class of societies from taxes on-
(a) agricultural income;
(b) sale or purchase of goods; and
(c) professions, trades, calling, and employments.
S.41 Exemption from compulsory registration of instruments.Nothing in clause (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act 1908 (Central Act 16 of 1908) or sections 54 and 59 of the Transfer of Property Act, 1882 (Central Act 4 of 1882), shall apply to--
(a) any instrument relating to shares in a society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debentures issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) any endorsement upon or transfer of any debenture issued by any such society.
S.42 Direct partnership of Government in societies.--(1) The Government may subscribe directly to the share capital of a society with limited liability.
(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to a dividend on the shares of any such society at a rate higher than that at which such dividend is payable to any other share holder of the society.
S.43 Indirect partnership of Government in societies.--The Government may provide moneys to a society for the purchase of shares in other societies with limited liability.
S.44 Principal State Partnership Fund.(1) An apex society which is provided with moneys by the Government under section 43 shall, with such moneys, establish a fund to be called the "Principal State Partnership Fund"
(2) An apex society shall utilise the Principal State Partnership Fund for the purpose of:--
(a) directly purchasing shares in other societies with limited liability; or
(b) providing moneys to a central society to enable that society to purchase shares in other societies with limited liability (hereinafter in this Chapter referred to as primary societies) or
(c) making payments to the Government in accordance with the provisions of this Chapter, and for no other purpose.
S.45 Subsidiary State Partnership Fund.(1) A central society which is provided with moneys by an apex society from the Principal State Partnership Fund shall, with such moneys, establish a fund to be called the "Subsidiary State Partnership Fund".
(2) A central society shall utilise the Subsidiary State Partnership Fund for the purpose of--
(a) purchasing shares in primary societies; or
(b) making payments to the apex society in accordance with the provisions of this Chapter, and for no other purpose.
S.46 Approval of Government for purchase of shares.--No shares in a society shall be purchased from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund except with the previous approval in writing of the Government.
S.47 Liability to be limited in respect of certain shares.--Where any shares in a society are purchased by--
(a) the Government; or
(b) the apex society or a central society from the Principal State Partnership Fund or the Subsidiary State Partnership Fund, as the case may be, the liability in respect of such shares shall in the event of the society being wound up, be limited to the amount paid in respect of such shares.
S.48 Restrictions on amount of dividend.--An Apex society which has purchased shares in other societies from the moneys in the Principal State Partnership Fund and a Central society which has purchased shares in primary societies from the moneys in the Subsidiary State Partnership Fund shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other share holders of that society.
S.49 Indemnity of Apex and Central societies.--(1) If a society in which shares are purchased from the moneys in the Principal State Partnership Fund is wound up or is dissolved, the Government shall not have any claim against the apex society which purchased the shares in respect of any loss arising from such purchase; but the Government shall be entitled to any moneys received by the apex society in liquidation proceedings or on dissolution, as the case may be.
(2) If a society in which shares are purchased form the moneys in the Subsidiary State Partnership Fund is wound up or is dissolved, neither the Government nor the apex society shall have any claim against the central society which purchased the shares in respect of any loss arising from such purchase; but the apex society shall be entitled to any moneys received by the central society in liquidation proceedings or on dissolution, as the case may be and such moneys shall be credited to the Principal State Partnership Fund.
S.50 Disposal of share capital and dividend, etc.--(1) All moneys received by an apex society in respect of shares of other societies purchased form the moneys in the Principal State Partnership Fund on redemption of such share or by way of dividends or otherwise shall be credited to that Fund.
(2) All moneys received by a central society in respect of shares of primary societies purchased form the moneys in the Subsidiary State Partnership Funds on redemption of such shares or by way of dividends or otherwise, shall in the first instance be credited to that fund and then transferred to the Apex society which shall credit them to the Principal State Partnership Fund.
(3) All moneys referred to in sub-section (1) or sub-section (2) shall Notwithstanding that the shares stand in the name of the apex society or the central society, as the case may be, be paid to the Government.
(4) Save as provided in sub-section (3), the Government shall not be entitled to any other return on the moneys provided
S.51 Disposal of Principal State Partnership Fund and Subsidiary State Partnership Fund on winding up of apex or central society.--(1) If any apex society which has established a Principal State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that fund shall be paid to the Government.
(2) If a central society which has established a Subsidiary State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be credited or paid, as the case may be, to the Principal State Partnership Fund from which it received moneys under clause (b) of sub-section (2) of S.44.
S.52 Agreement by Government and Apex societies.--Subject to the foregoing provisions of this Chapter,
(a) the Government may enter into an agreement with an Apex society setting out the terms and conditions on which it shall provide moneys to the apex society for the purpose specified in S.43;
(b) an Apex society may, with the previous approval of the Government, enter into an agreement with a central society, setting out the terms and conditions on which it shall provide moneys to that society from the Principal State Partnership Fund for the purpose specified in clause (b) of sub-section (2) of S.44.
S.53 Order forms of State aid to societies.--Notwithstanding anything contained in any law for the time being in force, the Government may-
(a) give loans or make advances to societies;
(b) guarantee the repayment of principal and payment of interest on debentures issued by a society;
(c) guarantee the repayment of share capital of a society and dividends thereon at such rates as may be specified by the Government;
(d) guarantee the repayment of principal and payment of interest on loans and advances to a society;
(e) guarantee the repayment of deposits received by the society and payment of interest on such deposits; and
(f) give financial assistance in any other form, including subsidies, to any society.
S.54 Provisions of S.43 to 52 to override other laws.--The provisions of Ss.43 to 52 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
S.55 Funds not to be divided.--No part of the funds other than the net profits of a society shall be paid by way of bonus or dividend or otherwise distributed among its members;
Provided that a member may be paid such remuneration, allowances or honoraria and on such scale as may be laid down by the bye-laws for any services rendered by him to the society.
S.56 Disposal of net profit.--(1) A society shall, out of its net profits in any year.
(a) transfer an amount not be in less than fifteen percent of the net profits to the reserve fund; and
(b) credit such portion of the net profits, not exceeding five per cent, as may be prescribed, to the Cooperative Education Fund referred to in clause (xix) of sub-section (2) of S.109;
62E[(c) ten per cent of the net profit to the Cooperative Member Relief Fund as may be prescribed.]
64F[(d) credit five percent of net profit to the Professional Education Fund maintained by the Registrar.]
63[x x x x]
(2) The balance of the net profits may be utilised for all or any of the following purpose namely:-
(a) payment of dividends to members on their paid up share capital at such rate 64[not exceeding 64A[twenty five] per cent] as may be prescribed.
(b) Payment of bonus to members
S.1[ 56A Disposal of non-banking assets.--The immovable property acquired by a society through a sale by the sale officer or through any legal proceedings for realisation of loan amount shall be disposed of by the society within seven years from the date of acquisition with prior sanction of the General body and the Registrar.]
2[Provided that, if the immovable property is to be utilized for activities connected with the objectives of the society, it shall seek the prior approval from the Registrar based on the resolution of the general body of the society.]
S.57 Investment of funds.A society may invest or deposit its funds--
(a) in Government Savings Bank; or
(b) in any of the securities specified in S.20 of the Indian Trust Act, 1882 (Central Act 2 of 1882); or
(c) in the shares or securities of any other society approved for the purpose by the Registrar by general or special order; or
(d) in any bank approved for the purpose by the Registrar; or
(e) in any other prescribed manner.
S.65[ 57A The Cooperative Development and Welfare Fund.(1) The Government may, notification in the Gazette, frame a scheme to be called the Cooperative Welfare and Development Scheme for the establishment of a fund under this Act and there shall be established, as soon as may be after the framing of the scheme, a Fund to be called Cooperative Development and Welfare Fund, in accordance with the provisions of this Act and the scheme;
65A[(2) A society shall contribute to the Fund at such rates as may be specified in the scheme.]
(3) There shall be credited to the Fund:-
(a) the contribution to be paid by the Society under sub-section (2); and
(b) any other amount which, under the provisions of the scheme, shall be credited to the Fund.
(4) Subject to the provisions of this Act and the scheme, the Cooperative Development and Welfare Fund shall be utilised for payment of grant or loans to societies for the following purposes, namely:-
(i) for the purpose of safeguarding
S.57B Deposit Guarantee Scheme.--(1) The Government may, by notification in the gazette, frame a scheme to be called "the Deposit Guarantee Scheme" specifying the purpose of the scheme and shall be administered in such manner, as may be specified therein.
(2) A society may contribute to the Deposit Guarantee Scheme at such rates as may be provided in the said scheme.
65AA[(3) All societies covered under the Deposit Guarantee Scheme shall enroll and contribute towards the scheme within six months from the date of commencement of the Kerala Cooperative Societies (Amendment) Act, 2013 failing which the societies have no right to accept deposit from depositors and the Registrar shall be competent to issue prohibition order, restraining the society from accepting deposits for such period specified in the order:
Provided that before making such order, the Registrar shall give an opportunity to the chief executive of the society to state his objection, if any, to the proposed action.<
S.57C Consortium Lending Scheme.--(1) The Government may, by notification in the Gazette, frame a scheme to be called the "Consortium Lending Scheme" for the purpose of providing loans for 1[public purposes and for] infrastructure development to societies, local authorities, development authorities or similar institutions on Government guarantee subject to such terms and conditions, as may be specified in the scheme.
(2) A society may contribute to the Consortium Lending Scheme, at such rates, as may be specified in the scheme.]
S.1[ 57D Cooperative Risk Fund Scheme(1) The Government may, by notification in the Gazette, frame a scheme to be called the "Cooperative Risk Fund Scheme" for the establishment of a Fund for meeting the loan liability of those members who have availed loans from the co-operative societies and died within the repayment period of such loans.
(2) The types of societies and the types of loans covered by the scheme, the rate and manner of contribution towards the fund by the societies, the manner of administration and utilization of the fund and the maintenance of books of accounts in respect of the fund and its audit shall be such as may be specified in the scheme.]
2[(3) All societies covered under the Cooperative Risk Fund Scheme shall contribute towards the scheme at the rate specified in the scheme within three months from the date of commencement of the Kerala Cooperative Societies (Amendment) Act, 2013 failing which the societies have no right to issue loans to members and general public an
S.1[ 57E Co-operative Revival Fund Scheme.--(1) The Government may, by notification in the Gazette, frame a scheme to be called "the Co-operative Revival Fund Scheme" for establishing a fund for the purpose of reviving societies which are weaker or remain in dormant position due to certain extraordinary situation by providing financial assistance subject to such terms and conditions to be specified in the scheme and shall be administered in such manner as may be prescribed.
(2) There shall be earmarked to the fund,--
(a) an amount which is not more than fifty percent of the reserve fund, referred to in clause (a) of sub-section (1) of section 56; and
(b) not more than fifty per cent of the Agriculture Credit Stabilization Fund set apart by Agricultural Credit Societies from their net profit; as and when required;
(c) such fund that may be granted by Government from time to time; and
(d) any other amount which under the provisions of the scheme may be credited to the fund.]
S.58 Restrictions on borrowings.--A society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as maybe specified in the bye-laws.
S.59 Restrictions on loans.--(1) A society shall not make a loan to any person or a society other than a member:
66[66B[Provided that the above restriction shall not be applicable to the Kerala State Co- operative Bank:]
Provided further that, with the general or special sanction of the Registrar, a society may make loans to another society.]
(2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit.
66C[(2A) A society shall not sanction loans or advances exceeding the individual maximum borrowing power fixed by the Registrar and as provided in the bye-laws of the society. For any contravention of this provision, the Chief Executive and the Committee of the co-operative society concerned shall be liable for punishment, provided in sub-section (7A) of section 94 of the Act.]
66A[(3) Granting of loans to members or to non-members under sub-section (2)
S.1[ 59A Valuation of property.--The valuation of immovable property to be pledged as security to a co-operative society shall be valued by an officer/officers authorised by the Committee in cases where the loan amount is below ten lakhs and where the loan amount exceeds ten lakhs, by a panel of five members consisting of two officers including the Chief Executive Officer of the society and two members of the Committee and an independent valuer authorised by the Committee.]
S.1[ 59B Purchase of movable and immovable properties by the societies.--Societies shall follow the norms, as may be prescribed, while acquiring movable and immovable properties by utilizing the own fund of the society.]
S.60 Restrictions on other transactions with members.--Save as is provided in Ss.58 and 59, the transactions of a society with persons other than members shall be subject to such restrictions, if any, as may be prescribed.
S.61 Provident Fund.--(1) A society shall establish a contributory provident fund for the benefit of its employees, to which shall be credited all contributions made by the employees and the society in accordance with the rules or the Employees Provident Funds Act, 1952 (Central Act 19 of 1952) whichever is more beneficial.
67[Provided that the contributory provident fund established under this sub-section shall not apply to the employees of such society to which the provisions of the Self Financing Pension Scheme framed under sub-section (1) of section 80A are made applicable and such society shall establish a Provident Fund in such manner and subject to such conditions or restrictions, as may be prescribed, for the benefit of such employees;]
(2) A 68[Provident Fund, whether contributory or not] established by a society under sub-section (1)--
(a) shall not be used in the business of the society;
(b) shall not be form part of the asset
S.62 Gratuity.--The employees of a society shall be entitled to gratuity at such rates and on such conditions as prescribed.
S.PART A AUDIT
S.PART B INQUIRY, SUSPENSION, INVESTIGATION AND SURCHARGE
S.66 Supervision and Inspection.(1) The Registrar shall supervise or cause to be supervised by a person authorised by him by general or special order in writing in this behalf, the working of every society as frequently as he may consider necessary. The supervision under this sub-section may include an inspection of the books of the society.
(2) The Registrar may, on his own motion, or on the application of a creditor of a society, inspect or direct any person authorised by him by order in writing in this behalf to inspect the books of the society:
Provided that no such inspection shall be made on the application of a creditor unless the applicant-
(a) satisfies the Registrar that the debt is a sum then due and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b) deposits with the Registrar such a sum as security for the costs of the proposed inspection as the Registrar may require.
69I[(2A) The Registrar
S.70[ 66A Powers of Registrar to give directions.--Subject to the provisions of the Act and the Rules made thereunder the Registrar may issue general directions and guidelines to any or all of the co-operative societies in furtherance of the purposes of the Act or for implementing Government policies for the benefit of the members and the general public.]
S.71[ 66B Suspension of Officers.If the Registrar, in the course of any enquiry under Section 65 or on inspection under Section 66 or on audit under section 64 or on the report of Vigilance Officer appointed under section 68A, is satisfied that any officer other than the President, Vice President, Chairman, Vice Chairman and member of the committee of any society has done any act detrimental to the interest of the society or its members and that there is reason to believe that such officer has indulged in misappropriation, manipulation of accounts, forgery, destruction or tampering of records of the society, he may, for the reasons to be recorded in writing issue a direction to the committee of the said society to suspend the officer or officers responsible for the offence forth with.]
S.1[ 66C Submission of returns to the Registrar2[(1)] Every co-operative society shall file returns, within six months of the closure of every financial year, before the Registrar, containing the following particulars, namely:--
(a) a comprehensive annual report of its activities;
(b) its audited statements 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;
(e) declaration regarding date of holding of its general body meeting and conduct of elections when due; and
4[(f) rectification reports approved by the Committee on audit report and the resolution of the General Body of the society.]
3[(g)] any other information required by the Registrar in pursuance of any of the provisions of this Act or the rules.
S.67 Cost of inquiry or inspection.--Where an inquiry is held under S.65, or an inspection is held under S.66 on the application of a creditor, the Registrar may, by order, apportion the cost, or such portion of the cost, as he may deem fit, between the society to which the society concerned is affiliated, the society, the member or creditor demanding an enquiry or inspection, and the officers or former officers of the society:
Provided that:--
(a) no order of apportionment of the cost shall be made under this section unless the society or the person sought to be made liable to pay the costs thereunder has had a reasonable opportunity of being heard.
(b) The Registrar shall state in writing the grounds on which the costs are apportioned.
S.68 *Surcharge.--(1) If in the course of an audit, inquiry, inspection or the winding up of a society 2[or on the basis of the report of the Vigilance Officer], it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to the Act and the rules or the bye-laws, or has caused any loss or damage in the assets of the society by breach of trust or wilful negligence or mismanagement or has misappropriated or fraudulently retained any money or other property belonging to such society or has destroyed or caused the destruction of the records, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorised by him by an order in writing in this behalf, to inquire into the conduct of such person.
(2) Where an inquiry is made under sub-section (1), the Reg
S.1[ 68A Vigilance Officer.(1) The Government shall appoint an officer, not below the rank of Deputy Inspector General of Police, as Vigilance Officer with powers to enquire into and investigate the cases of misappropriation, corruption and any other major irregularities in the society as may be referred to him by the Registrar.
(2) The Vigilance Officer shall conduct the inquiry and investigation in such manner, as may be prescribed.
(3) The Vigilance Officer shall be under the administrative control of the Registrar of Cooperative Societies.
Provided that the powers of the Registrar of Cooperative Societies under this section shall not be conferred on any other person.]
S.1[ 68B Power of Government or Registrar to deal with irregularities etc.--(1) The Government or the Registrar, as the case may be, may forward the cases of misappropriation or irregularities or corruption in the society which comes under the provisions of the Indian Penal Code, 1860 or/and of the Prevention of Corruption Act, 1988, to the Police or Vigilance and Anti-Corruption Bureau, as the case may be, for investigation and further action.
(2) The Registrar shall be the authority to accord sanction for inquiry/enquiry or investigation and also for taking cognizance of an offence under the Prevention of Corruption Act, 1988 against the members of the Committee and/or officers and servants of the society.
(3) In the case of Chief Executive Officers appointed by the Government, the Secretary to Government, Co-operation Department shall be the sanctioning authority.]
S.69 Disputes to be decided by Cooperative Arbitration Court and Registrar.--(1) Notwithstanding anything contained in any law for the time being in force, if a dispute arises:--
(a) among members; past members and persons claiming through members, past members and deceased members; or
(b) between a member, past member or person claiming through a member, a past member or deceased member and the society, its committee or any officer, agent or employee of the society; or
(c) between the society or its committee and any past committee, any officer, agent or employee or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the society; or
(d) between the society and any other society; or
(e) between a society and the members of a society affiliated to it; or
(f) between the society and a person, other than a member of the society, who has been granted a loan by the society or with w
S.73B[ 69A Cooperative Ombudsman.--(1) The Government may, by notification in the official Gazette, frame a scheme to be called the "Kerala Cooperative Ombudsman Scheme" with the object of enabling redressal of complaints relating to deficiency in banking or other services rendered by co-operative societies 73E[x x x x]
(2) The Government may appoint one or more persons as Ombudsman or Ombudsmen to carry out the functions entrusted to them by or under the scheme.
(3) The term of office of the Ombudsman or Ombudsmen, as the case may be, shall be three years from the date of their entering office or 73D[attaining the age of sixty five years], whichever is earlier.
73C[(4) The Ombudsman or Ombudsmen so appointed under sub-section (2) shall be a person or persons having minimum of ten years of Bar practice and having experience and expertise in banking or co-operative field.]
(5) The functions, powers, duties etc. of the Ombudsman shall be such, as may be spe
S.74[ 70 Award on disputes.--(1) The Cooperative Arbitration Court, on receipt of reference of a dispute under sub-section (1) of Sec.69, shall pass an award 74A[within one year] in accordance with the provisions of this Act and the rules and the bye-laws made thereunder and such award shall, subject to the provisions of Sec.82, be final.
(2) The Cooperative Arbitration Court may, pending award of a dispute referred to it under Section 69, make such interlocutory orders as it may deem necessary in the interests of justice.
(3) The Cooperative Arbitration Court shall have the same powers as are vested in a civil Court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), while trying a suit in respect of the following matters, namely:-
(i) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;
(ii) the discovery and production of any document or other material object producible as eviden
S.75[ 70A Cooperative Arbitration Courts.--(1) The Government shall constitute such number of Cooperative Arbitration Courts, as are necessary to exercise the powers and discharge the functions conferred on it under this Act.
75B[(2) The presiding officer of the Arbitration Court shall be an officer of and above the rank of a Munsiff-Magistrate of the judicial service.]
75C[Explanation.- For the removal of doubts, it is hereby clarified that the duties performed by the presiding officers of the Co-operative Arbitration Court (Northern) and the Co-operative Arbitration Court (Southern), who were in office at the time of coming into force of the Kerala Co-operative Societies (Amendment) Act, 2023, for the periods from 7th June, 2024 to 23rd June, 2024 and from 7th June, 2024 to 8th September, 2024 respectively shall be deemed to have been done under this Act.]
(3) The Government shall make rules for regulating the procedure and disposal of business of the Cooperative Arbi
S.76[ 70B Provisions as to pending proceedings.--On the constitution of a Cooperative Arbitration Court, every dispute pending before the Registrar or any person invested with the power to dispose of the dispute by the Government or the arbitrator appointed by the Registrar, in respect of non-monetary disputes, relating to the local area of jurisdiction of the Arbitration Court, shall be transferred to such Arbitration Court and the Court shall dispose of the same as if it were a dispute referred to it under Sec.69.]
S.71 Winding up of societies.(1) If the Registrar, after an inquiry has been held under section 65 or an inspection has been made under S.66 or an receipt of an application made by not less than three-fourths of the members of a society, is of opinion that the society ought to be wound up, he may, after giving the society an opportunity of making its representation and in consultation with the financing bank to which the society is affiliated and the Circle Cooperative Union, by order in writing direct it to be wound up.
(2) The Registrar may on his own motion by order in writing, direct the winding up of a society.
(a) Where it is a condition of the registration of the society that the society shall consist of at least twenty-five members and the number of members has been reduced to less than twenty five; or
(b) Where the society has not commenced working within six months of registration, unless extension of time is granted by the Registrar, or has ceased to work; or S.72 Liquidator.--(1) Where the Registrar has made an order under Section 71 for the winding up of a society, he shall appoint a liquidator for the purpose and may fix his remuneration.
(2) the liquidator shall, on appointment take into his custody or under his control all the property, effects and actionable claims to which the society, is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims.
(3) Where an appeal is preferred under Section 78[83] against an order of winding up of a society made under Section 71 such order shall not operate thereafter until it is confirmed in appeal;
Provided that the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in sub-section (2) and to have authority to take the steps referred to in that sub-section.
(4) Where an order of winding up of a
S.73 Powers of liquidator.--(1) Subject to any rules made in this behalf, the whole of the assets of a society in respect of which an order of winding up has been made shall vest in the liquidator appointed under Section 72 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.
(2) The liquidator shall also have power, subject to the control of the Registrar:
(a) to institute and defend suits and other legal proceedings on behalf of the society by the name of his office;
(b) to determine from time to time the contribution including debts due to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to be assets of the society;
(c) to investigate all claims against the society and subject to the provisions of this Act, to decide questions of priority arising between c
S.74 Cancellation of Registration of a Society.--When in respect of a society which has been ordered to be wound up under Section 71 no liquidator has been appointed under Section 72 after two months from the date of such order, or if an appeal has been filed against the order of winding up, from the date of confirmation of the order in appeal or where the affairs of a society in respect of which a liquidator has been appointed under Sec. 72 have been wound up or which the Registrar is satisfied that the final winding up of the affairs of the society is not possible on account of the destruction of the records, the Registrar shall, by order in writing, cancel the registration of the society and society shall be deemed to be dissolved and shall ceased to exist as a corporate body from the date of such order of cancellation.
S.74A Insured Cooperative Banks.Notwithstanding anything contained in this Act, in the case of an insured Cooperative bank:--
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganisation), of the bank may be made only with the previous sanction in writing of the Reserve Bank of India;
(ii) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in Section 13D of the Deposit Insurance Corporation Act, 1961 (Central Act 47 of 1961);
(iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made for the supersession (removal) of the committee of management or other managing body (by w
S.80B[ 74B Opening of Branches.--The Kerala State Cooperative Agricultural and Rural Development Bank and all primary co-operative societies/banks may open branches in their area of operation with the prior written permission of the Registrar.]
80C[(2) All primary credit societies including Primary Agricultural Credit Societies may open branches in their area of operation with the prior written permission of the Registrar.]
S.74C Inspection in certain Cooperatives.--1[(1)] Notwithstanding anything contained in section 66, the Registrar shall inspect or cause to inspect the "affairs" of all apex, federal and central societies every year and the power of inspecting officers shall be as specified under sub-section (4) of section 66.
Explanation:-- Inspection conducted under this section shall be in addition to and not in derogation of the inspection conducted under any other law for the time being in force.
2[(2) The Registrar shall suggest remedial action to Government to restructure the activities, if necessary, based on the report of inspection.]
S.74D Duty of Chief Executive to supply confirmation certificate.--It shall be the duty of the chief executive of a society to supply confirmation certificate correctly and within the time limit required by the auditor in respect of any accounts maintained in that society by another society in whose favour the Auditor requires certificate.
S.74E Manner of acceptance of deposits and lending of money.--Acceptance of deposits and lending of money by all co-operative societies and banks shall be in such manner, as may be prescribed.
S.74F Write off of loans.--Notwithstanding anything contained in any Act or Rules, no Authority or Commission, other than the Government or Registrar, shall have the power to write off agricultural or non-agricultural debts of borrowers of any society.
S.74G Library in Cooperative Societies.--Every co-operative society shall establish a library:
Provided that nothing contained in this provision shall apply to a society which is working on loss for a continuous period of five years.
S.74H Amalgamation of District Cooperative Banks to the Kerala State Co-operative Bank.--(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, the Registrar shall order the amalgamation of District Cooperative Banks in Kerala with the Kerala State Cooperative Bank on the basis of the resolution passed by the general body as provided under Section 14A of this Act.
80BB[(a) if the general body of a District Cooperative Bank has not passed the resolution under Section 14A, the Registrar may, after consulting Reserve Bank of India, order merger of such District Cooperative Bank with Kerala State Cooperative Bank, on public interest. No order shall be passed under this clause unless,--
(i) a copy of the proposed order of merger has been sent to the member society or member societies concerned by registered post and published the same in two vernacular dailies having wide circulation in the district in which the society situates, for their objections or suggestions;
&nbs
S.75 Enforcement of charge.--Notwithstanding anything contained in Chapter IX or any other law for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Registrar in this behalf, may, on the application of a society by order in writing, direct the payment of any debt or outstanding demand due to the society by any member or past member or deceased member, by sale of the property or any interest therein, which is subject to a charge under sub-section (1) of section 35;
Provided that no order shall be made under this section, unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice of the application and has failed to pay the debt or outstanding demand within thirty days from the date of such service.
S.76 Execution of orders, etc.Every order made under sub-section (2) of section 68 1[or every order of the Ombudsman, provided under section 69A, or an order] or under section 75 every decision or award made under Section 70, every order made by the liquidator under section 73 and every order made by the Tribunal under Section 82, section 84, section 85 or section 86 and every order made under section 83 shall, if not carried out-
(a) on a certificate signed by the Registrar or any person authorised by him in this behalf, be deemed to be a decree of a civil Court and shall be executed in the same manner as a decree of such Court; or
(b) where the order is for the recovery of money, be executed according to the law and under the rules for the time being in force for the recovery of arrears of public revenue due on land:
Provided that any application for such recovery shall be made--
(i) to the Collector and shall be accompanied by a certificate sig
S.77 Registrar or person empowered by him to be a civil Court for certain purposes.The Registrar or any person empowered by him in this behalf shall be deemed, when exercising any power under this Act for the recovery or any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery, to be a civil Court for the purposes of Article 136 of the Schedule to the Limitation Act, 1963 (Central Act 36 of 1963).
S.78 Attachment of property before award or order.If the Registrar is satisfied on an application, report, inquiry, or otherwise, that any person with intent to delay or obstruct the enforcement of any order, decision or award that may be made against him under the provision of this Act:-
(a) is about to dispose of the whole or any part of his property; or
(b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar, the arbitrator, or the liquidator, as the case may be, he may, unless adequate security is furnished, by order in writing direct the attachment of the said property, any such attachment shall have the same effect as if made by a competent civil Court.
S.79 Recovery of sums due to Government.--(1) All sums due from a society or from an officer or member or past member or deceased member of a society as such to the Government, including any costs awarded to the Government under any provision of this Act may, on a certificate issued by the Registrar 80C[or Director of Cooperative Audit] in this behalf be recovered in the same manner as arrears of public revenue due on land.
(2) Sums due from a society to the Government and recoverable under sub-section (1) may be recovered first, from the property of the society and secondly, in the case of a society the liability of the members of which is limited, from the members, past members or the estates of deceased members subject to the limit of their liability, and in the case of other societies from the members, past members or the estates of the deceased members.
Provided that the liability of past members and the estates of deceased members shall in all cases be subject to the provisions of Sectio
S.80 Officers, etc. of Cooperative Societies.--(1) The Government shall classify the societies in the State according to their type and financial position.
(2) The Government shall, in consultation with the 80D[Registrar] fix or alter the number and designation of the officers and servants of the different classes of societies specified in sub-section (1).
(3) The Government shall, 80E[x x x x] make rules 81[either prospectively or retrospectively] regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies specified in sub-sec.(1).83D[The appointment shall be regularised only after verifying his/her character and antecedents on subsequent police verification, as may be prescribed.]
82[(3A) Notwithstanding anything contained in this Act or the rules made or orders issued thereunder or in the bye-taws of any society relating to the recruitment and conditions of s
S.84[ 80A Pension Scheme.--(1) The Government may, by notification in the Gazette, frame a Self Financing Pension Scheme for the establishment of a Pension Fund for payment of pension to the employees of the societies 84A[and to the employees of the Boards constituted under the provisions of this Act] 85A[and for the employees of Co-operative Unions in the State] in the manner provided therein and may appoint different dates for the application of the scheme to different classes of societies 84B[or boards].
85[(1A) The Self Financing Pension Scheme framed under sub-s. (1) may also provide for payment of pension from the pension fund, at such rates and subject to such conditions and restrictions as may be specified therein, to persons retired from service of any society during the period between 1st January, 1974 and 3rd June,1993 and are alive.]
(2) The pension fund established under the Self Financing Pension Scheme framed under sub-section (1) shal
S.86[ 80B Cooperative Service Examination Board.--86B[(1) Notwithstanding anything contained in this Act or the rules made thereunder or in the bye-laws of any society relating to the recruitment of officers and servants thereof, but subject to section 80BB, the Government shall, by notification in the Gazette, constitute a Co-operative Examination Board for the conduct of written examination for all direct recruitment to the posts of and above the category of Junior Clerks in all co-operative societies, Boards and other institutions under the control of the Registrar:
Provided that the Registrar may, taking into consideration the financial capacity and viability of such society, exempt any society or class of societies from the provisions of this sub-section, in the manner as may be prescribed.]
86A[(1A) The Cooperative Service Examination Board shall also conduct competitive or qualifying examinations if any for promotion of employees in the societies, in such manner as may be prescribed
S.86B[ 80BB Recruitment Committees for appointments in Regional Cooperative Milk Producers' Union.-(1) Notwithstanding anything contained in this Act or the rules made thereunder Government shall, by notification in the Gazette, constitute Recruitment Committees which shall be the competent committees for the entire selection and recruitment process of all permanent employees of the Regional Cooperative Milk Producers' Union.
(2) The Recruitment Committee for undertaking the selection process of all employees other than the Managing Director shall consist of not more than eight members. The Secretary to Government in charge of Dairy Development Department shall be the Chairman of the Committee and the Managing Director of the apex body of the Regional Cooperative Milk Producers' Union, appointed by the Government, shall be the Convenor of the Committee. The other members shall be as follows, namely:-
(i) Registrar of Dairy (Cooperatives);
(ii) Chairman of the Apex Society;
(iii) Joint Director (General), Dairy Developme
S.1[ 80C The Kerala Co-operative Employees' Welfare Scheme.--(1) The Government may, by notification in the Gazette, frame a Scheme to be called the Kerala Co-operative Employees' Welfare Scheme for the establishment and management of a Fund by name "the Kerala Co-operative Employees' Welfare Fund" and there shall be established, as soon as may be, after framing of the Scheme, a fund in accordance with the provisions of this Act and the Scheme.
(2) The Welfare Fund established under the Scheme shall vest in the Kerala State Co-operative Employees' Welfare Board and be administered by such body or authority as may be specified in the Scheme.
(3) Subject to the provisions of this Act, the Scheme may provide for the following matters, namely:--
(i) the management and administration of the Kerala State Co-operative Employees' Welfare Fund;
(ii) powers and functions of the authority or body to be constituted thereunder; and
(iii) the composition and pattern of the establishment set up of the Kerala State Co-oper
S.1[ 80D The Kerala State Co-operative Employees' Welfare Board.--(1) The Government shall, by notification in the Gazette, constitute a Board to be called "the Kerala State Co-operative Employees' Welfare Board" for implementing the welfare schemes for the regular employees, commission agents and the persons working in the capacity of any other name on commission basis in a Co-operative society registered or deemed to be registered under this Act and coming under the administrative control of the Registrar of Co-operative Societies as well as other departments of the State Government in accordance with the provisions of this Act and the Scheme.
(2) The Board constituted under sub-section (1) shall provide for the constitution of a Welfare Fund and specify therein, the manner in which its fund Shall be raised and administered for the welfare of the employees and the rates of contribution to be paid by the employees and the co-operative societies towards the fund.
(3) The Board may provide money and other aids to the employees in thei
S.1[ 80E Transfer of assets and control of the existing Kerala State Co-operative Employees' Welfare Board.--(1) Notwithstanding anything contained in the Rules for the constitution and administration of the Kerala State Co-operative Employees' Welfare Board issued under G. O. (Rt.) No. 383/86/Co-op. dated 30th September, 1986, on and from the date of constitution of the Kerala State Co-operative Employees' Welfare Board under sub-section (1) of Section 80D, all assets and liabilities of the existing Kerala State Co-operative Employees' Welfare Board shall, be transferred to the Kerala State Co-operative Employees' Welfare Board constituted under the said sub-section.
(2) On and from the date of constitution of the Kerala State Co-operative Employees' Welfare Board under sub-section (1) of Section 80D, the existing Kerala State Co-operative Employees' Welfare Fund constituted under G. O. (Rt.) No. 383/86/Co-op. dated 30th September, 1986 shall vest in the Kerala State Co-operative Employees' Welfare Board constituted under the said sub-section and the control and supervision of the
S.87[ 81 Tribunal.--(1) The Government shall constitute a single member Tribunal to exercise the powers and discharge the functions conferred on the Tribunal under this Act.
(2) A person shall not be qualified for appointment as a member of the tribunal unless he is or has been holding the post of a District Judge in the State.
(3) The term, salary and allowance and other conditions of service of the member shall be such as may be decided by Government from time to time.
(4) The Government shall make rules for regulating the procedure and disposal of the business of the Tribunal.
S.81A Provisions as to certain pending proceedings.--Every proceeding pending before the Tribunal immediately before the commencement of this Act shall stand transferred to and will be decided by the Tribunal constituted under this Act:
Provided that all such proceedings relating to orders passed by the Registrar under Ss.32 and 33 of the Act, shall be sent to the Government for their decision.
Explanation.-- 'Proceeding' includes any appeal, revision petition or application for review].
S.82 Appeals to Tribunal.--88[(1) Any person aggrieved by
(a) an award of the Cooperative Arbitration Court, under sub-section (1) of Section 70; or
(b) an order of the Registrar made under clause (ii) of sub-section (8) or clause (ii) of sub-section (9) of Section 14; or
(c) any decision of the Registrar made under sub-section (6) of S.70; or
(d) any decision under sub-section (6) of S.70 of the person invested with powers in that behalf, by the Government; or
(e) any award of the Arbitrator under sub-section (6) of S.70; may, within sixty days from the date of such decision or award, as the case may be, appeal to the Tribunal, may pass such orders on the appeal as it may deem fit]
88A[(1A) The Tribunal shall pass an order under sub-section (1) within six months with direction to communicate the copies thereof within fifteen days to the parties thereof.]
(2) An order passed by the Tribunal under sub-sec
S.4 Societies which may be registered.Subject to the provisions of this Act, a Cooperative society which has as its object the promotion of the economic interest of its members or of the interests of the public in accordance with Cooperative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act.
21A[Provided that no co-operative society shall be registered if it is likely to be economically unsound, or the registration of which have an adverse effect on development of co-operative movement.]
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