(1) The Central Registrar shall audit, or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every multi-State co-operative society at least once in each year.
(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the Multi-State co-operative society.
(3) The person auditing the accounts of a multi-State co-operative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities.
(4) The directors, managers, administrators and other officers of the multi-State co-operative society shall furnish to the person auditing the accounts of the society all such information as to its transactions and working as such person may require.
(5) The Central Registrar or the person authorised by him under sub-section (1) to audit the accounts of a multi-State co-operative society shall have power, where necessary-
(a) To summon at the time of the audit any officer, agent, servant or member of the society, past or present, who, he has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and
(b) To require the production of any book or document relating to the affairs of, or any cash or securities belonging to. the society by any officer agent, servant or member of the society in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody.
(6) If at the time of audit the accounts of a Multi-State co-operative society arc not complete. the Central Registrar or the person authorised by him under sub-section (1) to audit may cause the accounts to be written up at the expense of the society.
(7) Audit tee. if any. due from any multi-State co-operative society shall he determined by the Central Registrar and shall be recoverable in the same manner as is provided in section 89-.
Section 68 - Inspection of multi-State co-operative societies
(1) The Central Registrar, or any person authorised by him by general or special order in writing in this behalf, may inspect a multi-State co-operative society.
(2)(a) For the purpose of inspection under sub-section (1). the Central Registrar or the person authorised by him under that sub-section shall at all limes have access lo all books, accounts. papers, vouchers, securities, stock and other property of that society and may. in the event of serious irregularities discovered during inspection, take them into custody and shall have power to verify the cash balance of the society and subject lo the general or special order of the Central Registrar lo call a meeting of the board and also a general meeting of the society where such general meeting is. in his opinion. necessary.
(b) Every officer or member of a multi-State co-operative society shall furnish such information with regard to the working of the society as the Central Registrar or the person making such inspection may require.
(3) A copy of the report of inspection under this section shall be communicated lo the multi-State co-operative society within a period of three months from the dale of completion of such inspection.
Section 69 - Inquiry by Central Registrar
(1) The Central Registrar may. of his own motion or on the application of a majority of the members of the hoard or of not less than one-third of the members. hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a multi-State co-operative society.
(2) The Central Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely :--
(a) He shall at all reasonable times have free access to the hooks, accounts, documents, securities. cash and other properties belonging to or in the custody of the multi-State co-operative society and may summon any person in possession or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same. at any place specified by him:
(b') he may. notwithstanding any rule or bye-law specifying the period of notice for a general meeting of the multi-State co-operative society, require the officers of the society to call a general meeting of the society by giving notice of not less than seven days at such lime and place at the headquarters of the society to consider such matters, as may be directed by him: and where the officers of the society refuse or fail lo call such a meeting. he shall have power to call it himself.
(c) He may summon any person who is reasonably believed by him to have any knowledge of the affairs of the multi-State co-operative society lo appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath.
(3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting of the society called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws.
(4) The Central Registrar shall, within a period of three months of the date of receipt of the report, communicate a brief summary of the report of the inquiry to the multi-State co-operative society, the financial institutions, if any, to which the society is affiliated, and to the person or authority, if any, at whose instance the inquiry is made.
Section 70 - Inspection of books of indebted multi-State co-operative societies
(1) The Central Registrar shall, on the application of a creditor of a multi-State co-operative society, inspect, or direct some 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 unless the applicant-
(a) Satisfies the Central 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 Central Registrar such sum as security for the costs of the proposed inspection as the Central Registrar may require.
(2) The Central Registrar shall communicate the result of any such inspection to the creditor.
Section 71 - Costs of inquiry and inspection
Where an inquiry is held under section 69-or an inspection is made under section 70-, the Central Registrar may apportion the costs, or such part of the costs, as he may think fit, between the multi-State co-operative society, the members or creditor demanding an inquiry or inspection, and the officers or former officers and the members or past members of that society:
Provided that -
(a) No order of apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs there under has had a reasonable opportunity of being heard;
(b) The Central Registrar shall state in writing under his own hand the ground on which the costs are apportioned.
Section 72 - Recovery of costs
Any sum awarded by way of costs under section 71-may be recovered, on application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself.
Section 73 - Repayment, etc.
(1) If in the course of an audit, inquiry, inspection or the winding upon a multi-State co-operative society, 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 lime been an officer or an employee of the society, has made any payment contrary to this Act. the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or willful negligence or has misappropriated or fraudulently retained any money or other property belonging lo such society, the Central Registrar may, of his own motion or on the application of the board, 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 within a period of two years from the date of the report of the audit inspection or inquiry or the date of the order of winding up. as the case may be :
Provided that where the Central Registrar is satisfied that such inquiry could not be commenced during the period of two years aforesaid on account of fraud or concealment of facts make, or direct the inquiry to be made, within such period not exceeding six years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as he may think fit.
(2) Where an inquiry is made under sub-section (1), the Central Registrar may, after giving the person concerned a reasonable opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate. or lo pay contribution and costs or compensation to such extent, as the Central Registrar may consider just and equitable.