(1) Where on the information received or gathered under section 29, or on the application of a majority of the office-bearers of a society, or on the application of not less than one-third of the members of the General Body, as the case may be, or if so moved by the Government or the District Collector, the Registrar General or Registrar or District Registrar is of the opinion that there is apprehension that––
(a) the affairs of such society are being so conducted as to defeat the aims and objects of the society; or
(b) its Governing Body is guilty of mismanaging its affairs or of any breach of fiduciary or other like obligations or to defraud its creditors, the Registrar General or Registrar or District Registrar, as the case may be, may, in writing, order an inquiry to be conducted either himself or by any person authorised by him in that behalf, into the affairs of that society.
(2) An application or reference made by the Government or District Collector to the Registrar General or Registrar or District Registrar under sub-section (1) shall be supported by such evidence, as he may require for the purpose of showing that the applicant has good reason for applying for an inquiry.
(3) The Registrar General or Registrar or District Registrar may, before the inquiry is ordered by him, require the applicants to furnish such security as he thinks fit as the cost of the proposed inquiry.
Power to call for information or explanation.
Powers to seize records, etc.
Power to inquire.
14 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— 14 Action on inquiry report.
(4) All expenses incidental or preliminary to the inquiry shall, where such inquiry is held,––
(a) on an application, be defrayed by the applicants thereof or out of the assets of the society or by the members of the society, in such proportion as the District Registrar may, by order in writing direct; and
(b) on a reference from the District Collector or the Government or on own motion of the District Registrar, be defrayed out of the assets of the society and shall be recoverable as arrears of land revenue.
(5) A person holding an inquiry shall have, at all reasonable times, free access to all the documents and shall have power to call upon any office-bearer or member to produce any of the document, as he may direct.
(6) It shall be the duty of all office-bearers or members, who were or are holding office in the society, to furnish the person holding the inquiry with all the information or document in their possession.
(7) A person holding an inquiry may––
(a) summon and examine any person on oath who, he has reason to believe, has knowledge of any affairs of the society; and
(b) summon any person to produce any books of account or documents belonging to him or in his custody, if the person holding the inquiry has reason to believe that such books of account or documents contain any entries relating to transactions of the society.
(8) A person holding an inquiry may, if in his opinion it is necessary for the purpose of inquiry, seize any or all the documents:
Provided that any person from whose custody such documents are seized shall be entitled to a receipt thereof and make copies thereof.
(9) If the inquiry is held under this section by––
(a) the District Registrar, he shall forward the report to the Registrar along with his recommendations; or
(b) a person other than the District Registrar, he shall send the report to the District Registrar and the District Registrar shall make a report to the Registrar along with his recommendations; or
(c) the Registrar himself, he shall forward the report to the Registrar General along with his recommendations.
(10) The inquiry report shall be communicated to the society and the applicants, if any.
32. The Registrar shall consider the inquiry report along with the recommendations of the District Registrar, if any, and take any of the following steps, namely:––
(a) where no irregularities of procedural or material nature are found to have been committed by the Governing Body, he shall order closure of the inquiry along with information thereof to the society and applicants, if any; or
(b) where the irregularities or violations committed by the society are found to be of procedural nature, which are rectifiable, he shall direct the society to take recourse to such corrective measures within such time, as he may direct and the society shall submit a compliance report thereof to the Registrar; or
(c) where the irregularities or violations committed by the society are found to be of a serious or material nature, he shall pass any other appropriate order to meet the ends of justice.
Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 1515