Rectification of defects or irregularities in accounts and inspection report of society

If, the result of the audit under section 90 and inspection under sections 93 and 94 discloses any defects in the working of the society, the society shall within a period of two months from the date of the audit and inspection report, clarify to the Registrar as regards the defects or the irregularities so pointed out in audit and inspection report, and if clarification in respect of any defect or irregularity is not accepted, take steps to rectify the defects and remedy irregularities within such period as may be specified by the Registrar and shall report to the Registrar, failing which the Registrar shall have power to impose a penalty of such amount not exceeding ten thousand rupees and where society concerned is a member of a federal society, such order shall be made after consulting the federal society.