In the said Act after Section - 41 the following new Section - 41A shall be inserted, namely - “41A. Supersession of the Board by the Tribunal. - (1) If in the opinion of the Tribunal, upon the receipt of application from the member of the Co-operative Society, the Board of any Co-operative Society, where loan or financial aid has been provided by the State Government or loan has been provided on Government guarantee, is persistently making defaults or is negligent in the performance of the duties imposed on it by this Act, the Rules or the Bye-laws, or conducted against the interest of its members or there is stalemate in the formation or functioning of the Board, he may, after giving opportunity to the managing committee to state its objection, if any, by order with reasons in writing supersede the Board of the Co-operative Society for a period not exceeding six months. The members of the Boards of societies so superseded shall not be eligible for reelection for five years from the date of supersession. Tribunal shall record every order passed under this section in writing and inform the concerned Co-operative Society through registered post;
Provided that in case of Co-operative Society carrying on the business of banking, provisions of Banking Regulation Act, 1949 shall also apply;
Provided further that in case of Co-operative Society carrying the business of banking, the maximum period of supersession shall be of one year;
Provided further also that the supersession of the Board of the Co-operative Society having banking operation shall be done in consultation with the Reserve Bank of India.
(2) When any Co-operative Society is under supersession under sub-section (1), the Tribunal shall appoint an Administrator to conduct the affairs of the Society. The Administrator appointed under this sub-section, shall take necessary action for the election of the Board of Co-operative Society within the specified period and shall hand over the management to elected Board.
(3) The Administrator appointed under sub-section (2) shall get remuneration, as may be fixed by the Tribunal, as he deems fit to carry on the business of the Cooperative Society. The remuneration so fixed shall be payable from the accounts of Co-operative Society.
(4) Administrator appointed under sub-section (2) shall work under the service condition laid down by the Tribunal and shall perform all the duties and carry on responsibilities assigned to the Board under this Act, rules and the Bye-laws of Society:
Provided that the Tribunal shall have the power to change the Administrator during the period of supersession.”