Insertion of Section - 33A and Section - 33B after Section - 33 of the Act VI, 1935

The following Sections - 33A and 33B shall be inserted after Section - 33 of the said Act namely:- "33A. Special Audit.- (1) A Co-operative Society dealing with funds from the Government or other external individual or institution may be subject to a special audit initiated by the Registrar at the request of such creditor or of his own motion with written specific order/direction.

1. (2) Special Audit under sub-section (1) shall be done by District Audit Officer/Senior level Audit Officers or any Committee of such Officers under the control of Registrar.
2. (3) Where the Special Audit reveals serious mismanagement in the Co-operative Society, costs of such Special Audit may be recovered from the Co-operative Society or the persons responsible for the mismanagement.
3. (4) Every Special Audit shall be completed and the report submitted to the Registrar within one hundred and twenty days from the date of issuance of the order.
4. (5) The Special Audit Report shall contain a statement of :-
   • (a) every payment which appears to the Auditor to be contrary to Act, Rules or Bye-laws of the Society,
   • (b) the amount of any deficiency, waste or loss which appears to have been caused by the gross negligence or misconduct of any person in the performance of duties,
   • (c) the amount of any sum received which ought to have been accounted for, but it is not brought into account by any person, and
   • (d) any asset or money to which any person related with the organization or management of the Co-operative Society or any former or present member of the Co-operative Society has misappropriated or fraudulently retained any property of the Society.
5. (6) The Registrar shall, within a period of thirty days from the date of the receipt of the Special Audit Report transmit copies of the same to –
   • (a) the applicant creditor,
   • (b) the Co-operative Society concerned, and
   • (c) the authorized Audit Officer to file proceedings of surcharge, where necessary, under Section -40. 33B. Maintenance of accounts and records.- (1) Every Co-operative Society shall keep at its registered office the following accounts and records :-
   • (a) a copy of this Act with amendments made from time to time,
   • (b) the minutes book,
   • (c) registration certificate and a copy of the registered Bye-laws and the amendments registered from time to time with date of amendment,
   • (d) a copy of the authenticated Bye-laws of the Federation/Union of which it is a member and for each of its member Co-operative Societies,
   • (e) account of all sums of money received and expended by the Co-operative Society and their respective purposes,
   • (f) account of all purchases and sales of goods by the Co-operative Society,
   • (g) account of the assets and liabilities of the Co-operative Society,
   • (h) a register showing total membership and the member wise use of various services,
     • (i) a list of members with voting rights for the current year updated within thirty days of closure of the financial year,
   • (j) copies of the Board policies,
   • (k) Annual Report, Audit Report, Special Audit Report, Inquiry Report and their compliances,
   • (l) copies of other laws and regulations to which the Co-operative Society is subject,
   • (m) such other documents as are relevant to the functioning of the Society; Provided that where a Co-operative Society has branch offices, accounts and records related to the branch, shall be available at the registered office for any period within twenty five days of the end of the financial year,
   • (n) all other documents, register, circulars, etc. required in accordance with the provisions and circulars issued by NABARD, Reserve Bank of India and Registrar from time to time.
6. (2) The books of accounts of every Co-operative Society together with supporting records and vouchers shall be preserved for such period as may be provided in the Bye-laws subject to any other laws for the time being in force."