Chapter XI OFFENCES AND PENALTIES

Offences and penalties. (1) If an office bearer or director or a Chief Executive or any employee of a Co-operative or Federal Co-operative willfully fails to issue a notice, send a return or document or neglects or refuses to furnish any information or willfully furnishes a false or an insufficient information required under this Act or the bye-laws of a Co-operative, shall be punishable with a fine which may extend to five thousand rupees or imprisonment which may extend to one year or with both. (2) If an office bearer, a Chief Executive, a director or any employee of a Co-operative or Federal Co-operative fails to do any act required to be done under this Act or allows to be done any act forbidden by this Act or the bye-laws or fails to fulfil the duties or indulges in fraudulent activities concerning the constitution, management and business or misuses funds and properties or indulges in the conduct of election to the board of directors “in corrupt” practices as defined under section 123 of the Representation of Peoples Act, 1951 (Central Act 43 of 1951) or fails to provide such information or produce such books or records or to give assistance or fails to appear in person before the person conducting an inquiry under sections 35 and 65 or audit under sections 33 and 64 or fails to contribute to the “Federal Co-operative Fund” of the Federal Co-operative, shall be punishable with fine which may extend to ten thousand rupees or with imprisonment which may extend to two years or with both. (3) Any employer, who without sufficient cause, fails to make the deduction or fails to pay to a co-operative the amount deducted by him for a period of fourteen days from the date on which such deduction is made shall be punishable with a fine of rupees five thousand or an imprisonment for a term of six months or with both. (4) Any office bearer, chief executive, a director or an employee of a co-operative or federal cooperative who is in possession of any information, books and records and who fails to furnish such information or produce such books or records or who willfully fails to handover custody of the books, accounts, documents, records, cash, security and other property belonging to a co-operative or the federal cooperative of which he is an officer or custodian, to an authorized person or who fails, without sufficient cause, to comply with a lawful written order or a requisition or a summons issued under the provisions of this Act shall be punishable with a fine of rupees ten thousand or an imprisonment for a term of two years or with both. (5) If the board and the Chief Executive of any cooperative or the federal cooperative fail to get its accounts for the preceding year audited within the period time stipulated under section 33 or section 64 as the case may be and present the audit financial statement along with audit report before the annual general meeting such every director and chief executive of such cooperative or federal cooperative shall be punishable with a fine of rupees five thousand or an imprisonment of six months or with both. (6) If the board and the Chief Executive of any cooperative or the federal cooperative fail to submit the returns and information to the registrar and federal cooperative as specified in the Section 34 or 64A as the case may be, every director and chief executive of such cooperative or the federal cooperative shall be punishable with a fine of rupees ten thousand or an imprisonment of two years or with both. (7) If the board and the Chief Executive of any cooperative or the federal cooperative fail to assist the cooperative election authority by furnishing the books, records and information required for conducting elections within the prescribed time under Section 26 or section 58, as the case may be, every director and Chief Executive of such cooperative or the federal cooperative shall be punishable with a fine of rupees ten thousand or an imprisonment of six months or with both. (8) Any person who, before, during or after the election of the members of the board or office-bearers of a cooperative or the federal cooperative, adopts any corrupt practice as specified under section 39C or commits any electoral offences specified under section 39K of the Karnataka Cooperative Societies Act, 1959 shall be punishable with a fine of rupees ten thousand or an imprisonment of two years or with both.