(1) The Registrar may, if he is satisfied that––
(a) the business of any such society is conducted, fraudulently; or
(b) the society is declared insolvent; or
(c) the society is carrying on any unlawful activity or allowing unlawful activity to be carried on in the premises under its control, order an inquiry to be conducted by the District Registrar or any other officer authorised by him in accordance with the procedure contained in sections 31 to 33 and submit a report thereof within the period specified in such order.
Explanation.––For the purposes of this sub-section, an activity shall be treated as unlawful, if such activity is an offence punishable under the provisions of any law for the time being in force.
(2) On receipt of the report referred to in sub-section (1) from the District Registrar, the Registrar shall issue a public notice inviting objections, if any, as to why the registration of the society should not be cancelled.
(3) After considering the objections filed by the society and public, and after giving a reasonable opportunity of being heard to the society, the Registrar may cancel the registration.
37. When the registration of a society is cancelled, the society shall forthwith cease to carry on its business, except in so far as it may be required for the beneficial winding-up of its affairs, for which purpose it shall pass a special resolution and dissolve itself in the manner as provided in this Regulation:
Provided that the liability of office-bearers shall continue and may be enforced as if the registration of society has not been cancelled.