(1) If in the opinion of the Registrar any officer of a cooperative society has contravened or omitted to comply with any provisions of this Act, the rules or the bye-laws of the society or has forfeited his right to hold office, the Registrar may, without prejudice to any other action that may or can be taken against him, call upon the society to remover within a specified period such officer from the office held by him and where necessary also to disqualify him from holding any office under that society for a period not exceeding three years whereupon officers concerned, pass such orders as it may deem fit.
[Provided that on the request of the Reserve Bank of India the competent authority shall remove a director or the secretary/chief executive officer of a Central Co-operative Bank or the Uttar Pradesh Cooperative Bank, who do not fulfill the criteria stipulated by the Reserve Bank of India after giving him an opportunity of being heard.]
(2) On the failure of the society to take action under sub-section(1), the Registrar may after according opportunity of being heard to the officer and for reasons to be recorded, and communicated to the person and society concerned, remove or removed and disqualify for a period not exceeding three years, the officer from holding any office under that society.
(3) An officer removed under sub-section (1) or sub-section (2) shall, with effect from the date of communication of the order, cease to hold that office and if disqualified shall not be eligible to hold any office under that society for the period specified in the order.