(1) Subject to the provisions of the Act, the Government may grant state aid in any form to a society on the following terms and conditions; namely :-
(a) A society receiving state aid shall not pay any dividend or distribute or take any profit in excess of such percentage, rate upon the amount of the capital of the society as the Government may, from time to time, fix.
(b) A society receiving state aid shall, with the approval of the Registrar appoint a paid Chief Executive Officer of the society.
(c) A society receiving State aid shall be bound 81
(i) to comply with any general or special order of the Government or the Registrar relating to the working of the society;
(ii) to permit to inspect the accounts relating to the society;
(iii) to maintain such accounts and to furnish such statements and returns as the Government or the Registrar may, from time to time, require; and
(iv) to comply with any order or conditions issued or imposed by the Government as may in its opinion be necessary or expedient to safeguard its interest.
(2) If the society to which State aid has been given in any form, fails to comply with any order made under the Act or the rules framed thereunder or commits any breach of any terms or conditions laid down for the grant of State Aid, or if on inspection of accounts, returns, statements or audit report of such society the Government is of the opinion that the State aid should be withdrawn, the Government may after considering any representation which the society may make within such time as the Government may allow, in this behalf, make an order directing
(i) that the balance of any loan outstanding shall be recoverable forthwith;
(ii) that the guarantee given shall cease from the date of such orders;
(iii) that the full value of any other State aid given and enjoyed till the date of the order shall be payable forthwith and the 82 grant of such State aid beyond such date shall be discontinued.
(3) The Government may set out other terms or conditions on which it shall provide State aid to a society.
CHAPTER VII Properties and Funds of Co-operative Societies