Inquiry by Registrars.

(1) The Registrar may of his own motion himself, or by a person duly authorized by him writing this behalf, hold an inquiry into the constitution, working and financial conditions of a society.

(2) The Registrar shall hold such an inquiry—

(a) on the requisition of a society duly authorized by rules made in this behalf to make such requisition, in respect of any of its members, such member being itself a society, or

(b) on the application of a majority of the committee of a society, or

(c) on the application of one-third of the members of a society.

(3) (a) Every officer, member and past member of the society in respect of which an inquiry is held, and any other person who is in possession of information, books and papers relating to the society,. Shall on being so required furnish such information as in his possession, and produce all books and paper relating to the society which are in his custody or power, and otherwise give to the officer holding the inquiry all assistance in connection with the inquiry which he can reasonably give.

(b) If any such person refuses to produce to the Registrar or any person authorized by him under sub-section (1), any book or paper which it is his duty under clause (a) to produce or to answer any question which is put to him by the Registrar or the person authorized by the Registrar may certify the refusal and the Registrar may impose on the defaulter a penalty of an amount not exceeding five hundred rupees. Before imposing such penalty, the Registrar shall give, or cause to be given a reasonable opportunity to the defaulter, of showing cause against the action proposed to be taken in regard to him.

(4) (a) If at any stage of the inquiry under this section the Registrar is satisfied that in the interest of the members of the society it is necessary to take over all books and papers relating to the society during the period of inquiry, he may make and order in writing to that effect and directing the society to hand over all books and papers relating to the society to such officer as may be specified in the order. The Registrar may also issue a direction to the society to refrain from doing such acts or engaging in such activities as may be specified in the direction.

(b) The society shall be bound to comply with any direction issued to under clause (a). (c) The books and papers taken over under clause (a) shall be returned to the society on the completion of the inquiry. (5) When an inquiry is held under this section the Registrar shall communicate the result of the inquiry— (i) When inquiry the State Government have subscribed directly to the share capital of the society or in case any moneys are due form the society to the principal State Partnership Fund or to Subsidiary State Partnership Fund to the State Government or to any officer appointed by it in this behalf; (ii) to the federal co-operative society concerned, and (iii) to the society concerned. (6) It shall be competent for the Registrar to withdraw any inquiry from the officer to whom it is entrusted, and to hold the inquiry himself or entrust it to any other person as he deems fit.