(1) Any person other than a co-operative society carrying on business under any name or title of which the word "Cooperative" or its equivalent in any Indian language, is part, without the sanction of the State Government, shall be punishable with a fine which may extend to 1 [two thousand] rupees.
2 [(1A) If default is made in giving effect to the order of the Registrar within the period specified in sub-section (3) of section 105A, the co-operative society and every 3 [office bearer] of the society who is in default shall be punishable with fine which may extend to one thousand rupees or with further fine which may extend to one hundred rupees for every day after the first during which the default continues.]
(2) Any member or past member or the nominee, heir or legalrepresentative of a deceased member of a co-operative society who contravenes the provisions of section 32 or 33 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act to the prejudice of such claim, shall be punishable with fine which may extend to 1 [five thousand] rupees.
(3) A co-operative society or an 3 [office bearer] or member thereof wilfully making a false return or furnishing false information, or any person willfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act or wilfully not furnishing any information or handing over any documents or property required from him by a person or body of persons authorised in this behalf under the provisions of this Act, shall be punishable 2 [with imprisonment which may extend to two years but shall not be less than three months and with fine which may extend to three thousand rupees but shall not be less than five hundred rupees].
(4) Any employer, who without sufficient cause, fails to make thededuction under sub-section (2) of section 34, or fails to pay to a cooperative society the amount deducted by him under sub-section (2) of section 34 within a period of fourteen days from the date on which such deduction is made, shall, without prejudice to any action that may be taken against him under any law for the time being in force, be punishable with 2 [imprisonment for a term which may extend to three months or with fine which may extend to three thousand rupees.]
(5) If default is made in complying with provisions of 4 [sub-section (4)] of section 16, sub-clause (ii) of clause (b) of sub-section (1) of section 24, sub-section (1) of section 28, section 56, section 58, section 59, section 60, or section 62, the co-operative society, and every 3 [office bearer] or member of committee of the society who is in default shall be punishable with fine which may extend to 2 [three] hundred rupees.
(6) If any person,--
(i) not eligible to become a member under section 17 applies to a co-operative society for admission as a member, or becomes a member, or after ceasing to be a member 5 [under sub-section (2) of that section acts as or exercises any rights or privileges of a member of any such co-operative society];
(ii) exercises the rights of a member in contravention of the provisions of section 19;
(iii) wilfully fails to furnish the information or document in contravention of the provisions of sub-section (3) of section 87;
(iv) grants a lease of the mortgaged property in contravention of subsection (1) of section 95, shall be punishable with 1 [imprisonment for a term which may extend to three months or with fine which may extend to three thousand rupees].
6 [(7) if any person who is not eligible to vote under sub-section (2) of section 20 exercises such vote, he shall be punishable with a fine which may extend to 1 [three thousand] rupees.]
7 [(8) If any person collecting any money as share money for a cooperative society in formation does not within a period of seven days from the date of such collection deposit the same in a co-operative bank specified by the Registrar in this behalf in the name of the co-operative society to be formed, he shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to three thousand rupees.
(9) Any 3 [office bearer] or member of a co-operative society who is in possession of any information, books and records fails to furnish such information or produce such books or records or to give assistance to a person appointed or authorised by the State Government or the Registrar or the Director of Co-operative Audit under sections 30, 3 [31], 63, 64, 65, 65B or 73 and entitled to the possession thereof, shall be punishable with fine which may extend to three thousand rupees.
(10) Any 3 [office bearer] of a co-operative society or other person who fails to hand over the custody of books, records, cash, securities and other property belonging to the co-operative society to a person appointed under sections 30, 3 [31] or 73 or any other person or 3 [office bearer] entitled to the possession thereof shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to three thousand rupees.
(11) Any 3 [office bearer] or member of a co-operative society who willfully fails to comply with any decision, award or order passed by the Registrar or arbitrator or the tribunal shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to three thousand rupees.
(12) Any 3 [office bearer] or a member of co-operative society who wilfully recommends or sanctions for his own personal use or benefit or for the use or benefit of a person in whom he has interest, a loan in the name of any other person shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to three thousand rupees or with both.
8 [(12A) where any person conducting audit under section 63 or inquiry under section 64 or inspection under section 65 or section 65B,--
(i) wilfully omits to mention in his report any defects or irregularity which he has noticed or might have noticed had he exercised due deligence during the course of audit, inquiry or inspection; or
(ii) wilfully makes false observation in his report; shall without prejudice to any other action that may be taken against him under any law for the time being in force be punishable with imprisonment for a term which may extend to six months or with fine which may extend to three thousand rupees or with both. (12B) Where a Chief Executive fails to send periodical extracts of cash book and certified copies of the proceedings of the General Meetings and Committee Meetings to the Registrar and the financing bank or credit agency within the time limits specified under sub-section (6) of section 29G, he shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to three thousand rupees or with both.]
(13) Any co-operative society or any 3 [office bearer] or employee or paid servant thereof who fails to give effect to any decision or award under section 71 including order if any, passed by the appropriate appellate authority, such decision or award not being a money decree, shall if such failure is by,--
(a) the Board, be punishable with fine which may extend to five thousand rupees, and
(b) an 3 [office bearer] or an employee or a paid servant of such cooperative society, be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five thousand rupees or with both.
(14) A member of the committee of a co-operative society who uses orallows the use of properties or funds of any co-operative society otherwise than in accordance with the provisions of this Act, the rules or the byelaws of the society, shall be punishable with fine which may extend to five thousand rupees.
(15) Where an 3 [office bearer], an employee, a paid servant or a member of a co-operative society, receives or sanctions a benami loan, accepts or obtains or agrees to accept or attempts to obtain from any person for himself or for any other person any gratification whatsoever, other than legal remuneration as a motive or reward for doing or forebearing to do any official act or showing or forebearing to show in exercise of his official functions favour or disfavour to any person or for rendering or attempting to render any service or dis-service to any person or used or allows to use the properties or funds of any co-operative society otherwise than in accordance with the provisions of this Act, the rules or the bye-laws of the co-operative society; or where any 3 [office bearer] of the co-operative society signs in the minutes of the board or other committee meetings without actually attending such meeting; he shall be deemed to be guilty of corrupt practice, and,-
(i) every person found guilty of any corrupt practice shall be punishablewith imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees or with both;
(ii) every person convicted of an offence under clause (i) shall bedisqualified permanently to be an 3 [office bearer] or an employee or a paid servant of any co-operative society.
(16) Any co-operative society or a member of its committee or anyemployee thereof guilty of any contravention of the provisions of this Act for which no penalty is provided elsewhere, shall be punishable with imprisonment for a term which may extend to three months or with fine which may extend to five thousand rupees or with both.]
_______________________________
1. Substituted by Act 5 of 1984 w.e.f. 9.1.1984.
2. Inserted by Act 40 of 1964 w.e.f. 26.6.1965.
3. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
4. Substituted by Act 40 of 1964 w.e.f. 26.6.1965.
5. Substituted by Act 71 of 1976 w.e.f. 3.11.1976.
6. Inserted by Act 71 of 1976 w.e.f. 3.11.1976.
7. Sub-sections (8) to (16) inserted by Act 5 of 1984 w.e.f. 9.1.1984.
8. Sub-sections (12A) & (12B) inserted by Act 25 of 1998w.e.f. 15.8.1998.
Section 110 - Offences by Companies
(1) Where an offence under subsection (1) or sub-section (4) of section 109 or under any rule has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in the aforesaid sub-section or in any rules, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1) where anoffence under sub-section (1) or (4) of section 109 or any rule has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purposes of this section,--
(a) "company" means a body corporate, and includes a firm or otherassociation of individuals; and
(b) "director" in relation to a firm means a partner of the firm.
Section 110A - Power to compound offences
1 [110A. Power to compound offences
(1) The Registrar may accept from any person against whom a reasonable suspicion exists that he has committed any offence punishable under sub-sections (1), (1A), (2), (5), (7), (9), (13) and (14) of section 109 a sum of money not exceeding one thousand rupees by way of composition for the offence which such person is suspected to have committed.
(2) On the payment of such money to the Registrar the suspected personif in custody, shall be discharged, the property, if any, seized shall be released and no further proceeding shall be taken against such person or property.]
_______________________________
1. Inserted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 111 - Cognizance of offences
(1) No court inferior to that of a Magistrate of the First Class shall try any offence under this Act.
1[(2) No prosecution shall be instituted under this Act without the previous sanction of,--
(a) The2[Director of Co-operative Audit] in respect of matters arising out of audit;
(b) the Registrar in respect of other matters.
(3) The sanction under sub-section (2) shall not be given,--
(i) without giving to the person concerned an opportunity to representhis case;
(ii) if the2[Director of Co-operative Audit] or the Registrar, as the case may be is satisfied that the person concerned has acted in good faith.]
_______________________________
1. Sub-sections (2) and (3) substituted by Act 3 of 1980 w.e.f. 11.8.1977.
2. Substituted by Act 5 of 1984 w.e.f. 9.1.1984.