(1) (a) If the records, registers or the books of account of a co-operative society are likely to be tampered with or destroyed and the funds and property of a cooperative society are likely to be misappropriated or misapplied; or
(b) if the committee of a co-operative society is reconstituted at general body meeting of the co-operative society or the committee of a co-operative society is removed by the Registrar under section 37 or if the co-operative society is ordered to be wound up under section 95, section 96 or section 97 and the outgoing members of the committee refuse to hand over charge of the records and the property of the co-operative society within fifteen days of notice by the new committee or administrator or the liquidator to those having or entitled to receive such charge;
(c) the newly elected committee or administrator or the liquidator, as the case may be, on expiry of fifteen days notice shall apply to the Registrar, who on application by the newly elected committee, administrator, the liquidator or suo-motu, if satisfied, may approach the Divisional Commissioner to authorise the Subdivisional Magistrate in whose jurisdiction the registered office of the society is located, in the prescribed form setting forth the reasons therefor, to enter, search or break open any premises where such records and properties of the society are kept and seize any such records and properties of the society and to cause delivery to the new committee, administrator or the liquidator of the records and properties of the society.
(2) For the purpose of the proceedings under sub- section (1), the authorization aforesaid shall be conclusive evidence that the records and properties to which it related belong to the society.
(3) The officer authorised under sub-section (1) may take such police assistance as may be necessary for the said purpose and the expenses incurred under this section shall be borne from the funds of the society.
(4) The provisions of section 100 to 102 (both inclusive) of the Code of Criminal Procedures, 1973 (Central Act, 2 of 1974) relating to searches and seizure shall apply, so far as may be, to searches and seizure under this section.
Acts of co-operative society not to be invalidated by certain defects.
39. No act of a co-operative society or of any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in procedure or in the constitution of the co-operative society or of the committee or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment.
Expulsion of members.
40. Any member of a co-operative society (other than a co-operative housing society) may be expelled by a resolution passed by the committee of the co-operative society subject to the approval of such resolution by the Registrar if :
(i) the member has wilfully deceived the co-operative society by false document to obtain the membership of such co-operative society; or
(ii) the member incurs any of the disqualifications for being a member of the cooperative society; or
(iii) the member has brought disrepute to the co-operative society or has done any other act detrimental to the interest and proper working of the co-operative society:
Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity to represent himself in the matter:
Provided further that no member shall be expelled unless the resolution for such expulsion is passed by a majority of not less than three-fourths of the members present and entitled to vote in the meeting of the committee and no resolution for expulsion shall be valid unless approved by the Registrar.
(2) After the resolution for expulsion is passed as above by the committee, the resolution shall be referred to the Registrar for approval within a period of thirty days.
(3) On receipt of the resolution for expulsion, the Registrar shall take cognizance of such resolution within thirty days and pass a final order either approving the expulsion or rejecting the proposal for expulsion within a period of one hundred and eighty days and if the matter is not decided by the Registrar within the aforesaid period, the expulsion of such a member shall be deemed have been approved:
Provided that the Registrar, before approving the resolution, shall hear the parties in the manner prescribed and shall have power to summon and enforce attendance of witness including the parties interested or any of them and compel them to give evidence on oath, affirmation or affidavit and to compel production of documents by the same means as far as possible in the same manner as provided in the case of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) and the order under this section so passed by the Registrar shall be final with a right for appeal before the Tribunal.
(4) Any party aggrieved by the order of the Registrar or deemed approval of expulsion, as the case may be, under sub-section (3) may, within sixty days from the date of such order, appeal to the Tribunal.
Cessation of membership of Cooperative Society.