(1) Where the State Government is , of opinion that the business of a society is being conducted with an intent to defraud its creditors, members or any other person or that the society is guilty of mismanaging its affairs or of any fraudulent or unlawful act, the State Government may appoint a competent person as Inspector to investigate into the affairs of the society or inspect any institution manage by the society and report on such matters as the State Government may direct.
(2) It shall be the duty of every officer of the society when so required by the Inspector to produce any books and papers of or relating to the society which are in his custody, and otherwise to give to the Inspector all reasonable assistance in connection with the investigation.
(3) An Inspector may call and examine on oath any officer of the society and it shall be the duty of every such officer to appear before and answer all questions put forth by the Inspector.
(4) On the conclusion of the investigation the Inspector shall make a report to the Registrar and the latter shall send the report to the State Government along with his comment.
(5) For failure to comply with the provisions of sub-section (2) or sub-section (3), the officer in default shall be punishable with fine which may extend to two hundred and fifty rupees.
(6) All expenses connected with or incidental to an investigation by the Inspector shall be defrayed by the State Government.