All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, in the audit report of the society released by the Registrar shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the society.
All other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable in the audit report may be written off against the Reserve Fund or share capital of the society;
Provided that :
(i) no bad debts or losses shall be written off without the sanction of the general body;
(ii) before any such bad debts or loses are so written off, the society, if it is affiliated and indebted to a Financing Bank, shall first obtain the approval of that Bank in writing and also the approval of the Registrar. If the society is affiliated but not indebted to the Financing Bank and in all other cases, it shall obtain the approval of the Registrar in writing. If the society is a Central Bank, approval of the State Co-operative 83 Bank and the approval of the Registrar shall first be obtained;
(iii) in case of societies classified as A or B at the time of last audit, no such permission need be taken if the bad debts are to be written off against the Bad Debt Fund specially created for the purpose;
(iv) the Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.
55. Co-operative Education and Training Fund -
(1) A Co-operative Education Training Fund shall be constituted under and regulated by the Co-operative Education and Training Fund Regulations made by the Registrar, in consultation with the apex Cooperative societies and the Rajasthan State Co-operative Union.
(2) The contributions to the fund payable by a society shall be a charge on the funds of the society and shall be recoverable in the manner provided in Section 100 of the Act as arrears of land revenue and the officer of the society wilfully failing to comply with the requirement of this rule, shall be personally liable for making good the amount to the fund. The amount so allocated shall be remitted to the fund within two months of the date of allocation of the net profits by the General body of the society.
(3) The Co-operative Education and Training Fund Regulations made under sub-rule (1) above shall, among other things, include regulations regarding (i) administration of the fund, (ii) allocation and distribution of fund for Co-operative education and training in order to 84 carry out the working plan prepared under subsection (2) section 111 of the Act; and (iii) distribution amongst various district co-operative unions and contribution to the National Co-operative Union of India:
Provided that such portion of the fund allocated to the Rajasthan State Co-operative Union and district co-operative unions as decided by the Registrar shall be utilised for education and, training of women cooperatives.
56. Investment of other funds -
(1) A society may invest any of its funds (other than the reserved fund) in any of the modes specified in section 49 when such funds are not utilised for the business of the society.
Explanation.:- For the purpose of this sub-rule, "business of society" shall include any investment made by the society in immovable property with the prior sanction of the Registrar in the process of recovery of the society's normal dues or for the purpose of construction of building or buildings for its own use.
(2) The Registrar may, in the case of any society or class of societies, specify by a special or general order the maximum amounts to be invested in any class or classes of securities.
(3) Every Society which has invested an amount not less than 10 percent of its working capital in securities shall be required to constitute an investment fluctuation fund. The Registrar may direct that a specified percent of the net profits every year shall be credited to the investment fluctuation fund until, in his opinion, the amount of the funds is adequate to cover anticipated losses arising out of the disposal of the securities.
(4) A society may, with the previous sanction of the Registrar, invest the whole or any portion of its funds in the purchase or lease of 85 land or in the acquisition, construction or renewal of any building that may be necessary to conduct its business. The amount of the funds invested shall be recouped on such terms as may be determined in each case by the Registrar.
(5) The provision of sub-rule (4) shall not apply -
(a) to immovable property purchased -
(i) by a society at a sale held in execution of a decree obtained by it, for the recovery of any sum due to it;
or
(ii) by a financing bank at a sale held in execution of a decree obtained by a society financed by it, for the recovery of any sum due to such society or at a sale brought by the liquidator or such society; or
(b) to the purchase or lease of lands or purchase, construction or renewal of buildings by a society whose objects according to its bye-laws include such purchase, lease construction or renewal.
(6) No recoupment of the amount invested under this rule shall be necessary where the investment is made -
(a) by a society from its building fund constituted out of profits;
(b) by a society, other than a credit society, in which the share capital raised from the members is intended to build up the special kind of business for which it has been registered.
(7) Nothing in this rule shall apply to investment of the reserved fund of a society and such investment shall be governed by rule 57.
86