Offences and Penalties

Cooperative Society (a) fails to give a notice, send a return or document or fails to do or allows to be done any act which a Cooperative Society is by this Act or under its bye-laws required to give, send, do or allow to be done; (b) willfully neglects or refuses to do an act or to furnish information required for the purposes of this Act or does an act forbidden by this Act, or the bye- laws; (c) makes a return, or willfully furnishes information in any respect false or insufficient; (d) indulges in fraudulent activities concerning the constitution, management and business of the Cooperative Society; (e) misuses the funds and property of the cooperative Society; or (f) indulges in the conduct of elections to the Board in corrupt practices" as defined under section 123 of the Representation of People Act, 1951,

(2) It shall be an offence under this Act, if any person or Cooperative Society contravenes the provisions of this Act of the bye-laws of the Cooperative Society. (3) An offence by a Cooperative Society shall be deemed to have been also committed by each office- bearer of the Cooperative Society bound by the bye-laws thereof to fulfill the duties where of the breach is an offence, or if there is no such office- office-bearer then by each of the directors, unless the office-bearer or director, as the case may be proves to have attempted to prevent the commission of the offence. (4) An offence under this section shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one year or with fine which may extend to Rs. 2000 (Rupees Two thousand), or with both: Provided that where a person is guilty of misappropriation, fraud, breach of trust, cheating or may other act involving moral turpitude, resulting in a loss to the Cooperative Society, he shall also he punishable under the relevant provisions of the Indian Penal Code, 1860.