All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are cert if ied as bad debts in audit and all other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been cert if ied as irrecoverable in audit shall f irst be writ ten off against the bad debt 26 reserve and the balance, if any, may be writ ten off against the reserve fund and share capital of the society:
Provided that—
(i) in the areas where Central Co -operative bank is declared as „weak bank‟ by the Reserve Bank of India, the primary agricultural credit societ ies affi l iated to the bank, as also such bank can write off the debt and losses on the certif icate issued by the committee appointed by the State Government;
( i i) in the areas other than those mentioned in clause (1) above, no such bad debt or losses shal l , be writ ten off without the sanction of the general body;
( i i i) before any such bad debt or losses are so writ ten off, the society, if i t is indebted to a financing bank, shall obtain the approval of such bank, in writ ing;
( iv) before any such bad debt s or losses are so writ ten off, the society, shall , obtain the approval of the Registrar in writ ing who may while giving approval, impose such conditions as to restoration of part or whole of the amount writ ten off against the reserve fund from out of futu re profits, as he may deem fit ;
(v) when a scheme of debt relief prepared by the State Government is implemented by a society, i t may adjust i ts bad and doubtful reserve for writ ing off loans under the s cheme.