(1) For the transfer under section 3, of the undertakings of the societies to the Government, there shall be paid by the Government to every shareholder of each of the societies an amount equal to the value of the shares held by him in the society immediately before the appointed day after deducting any amount due by him to the society.
(2) Notwithstanding anything contained in sub-section (1), where a member employee has obtained a loan from any bank for purchase of shares in any of the societies and the society has stood surety for such loan with interest thereon or has undertaken to recover the loan from the salary of the member-employee, the balance, if any, of the loan together with interest remaining outstanding on the appointed day shall be paid by the Government to the bank and the member-employee shall be paid only the balance after deducting the amount paid to the bank under this sub-section from the amount to which he is entitled under sub-section (1).
(3) The amount payable to a shareholder under this section shall be paid by the Director of Industries and Commerce in cash within a period of six months from the appointed day on production and surrender of valid share certificates issued by the societies:
Provided that if the amount is not paid within the period aforesaid, the Director of Industries and Commerce shall pay interest on the amount at the rate of four percent per annum from the date of expiry of the said period.