Chapter XI INQUIRY AND SUPERSESSION OF GOVERNING BODY

1. (1) The Registrar General or the Registrar may, by written order, require any society to furnish in writing such information or document or explanation as provided in the order within such time, not being less than two weeks from the date of receipt of such order.
2. (2) On receipt of the order referred to in sub-section (1), it shall be the duty of the society to furnish such information or documents or explanation.

1. (1) Where the Registrar General or the Registrar is satisfied that,—
   • (i) the records, registers or the books of account are likely to be tampered with or destroyed and the funds and the property are likely to be misappropriated or misapplied;
   • (ii) the Governing Body is reconstituted at a general meeting and the outgoing members of the Governing Body refused, to hand over charge of the records and property of the society to those entitled to receive such charge; or
   • (iii) the office bearers, where the elections of the Governing Body have not been held by the due date, are likely to misuse such documents, funds, records or are reluctant to hand over the records to an ad-hoc Committee or the administrator appointed for managing the affairs of the society, as an interim measure, he may issue an order directing a person duly authorised by him in writing to seize and take possession of such documents, funds, records and property whereupon the office bearers responsible for custody of such documents, record, funds and property shall give delivery thereof to the person so authorised. Explanation.—For the purposes of this clause, the expression “due date” means to the date on which the term of a Governing Body of a society expires and by which the elections of the successor body should be completed.
2. (2) In order to secure compliance of the order under sub-section (1), the Registrar may take or cause to be taken such steps and use or cause to be used such minimum force, including recourse to police force, as may deem appropriate.

1. (1) Where on the information received or gathered under section 27 or on the application of a majority of the office bearers or on the application of not less than one-third of the members of the General Body, as the case may be, or, if so moved by the Government or District Collector or the Registrar General or Registrar is of the opinion that the affairs of a society are being so conducted as to defeat the aims and objects of the society or its Governing Body is guilty of mismanaging its affairs or of any breach of fiduciary or other like obligations or to defraud its creditors, he may, either himself or by any person authorised by him in that behalf, hold an inquiry into the affairs of the society.
2. (2) An application to the Registrar General or Registrar under sub-section (1) shall be supported by such evidence, as he may require for the purpose of showing that the applicant has good reason for applying for an inquiry.
3. (3) The Registrar General or the Registrar may require the applicants to furnish such security as he thinks fit as the cost of the proposed inquiry before the inquiry is ordered.
4. (4) All expenses incidental or preliminary to the inquiry shall, where such inquiry is held,––
   • (a) on application, be defrayed by the applicants thereof or out of the assets of the society or by the members of the society, in such proportion as the Registrar may, by an order in writing direct; and
   • (b) on a reference from the District Collector of the Union territory or the Registrar be defrayed out of the assets of the society and shall be recoverable as arrears of land revenue.
5. (5) A person holding an inquiry shall have at all reasonable times, free access to all the documents and shall have power to call upon any office bearer to produce any of the document, as he may direct.
6. (6) It shall be the duty of all office bearers, who were or are holding office, to furnish to the District Collector or the Inquiry Officer with all the information or documents in their possession.
7. (7) A person holding an inquiry may summon and examine any person on oath who, he has reason to believe, has knowledge of any affairs of the society and may summon any person to produce any books of account or documents belonging to him or in his custody, if the person holding the inquiry has reason to believe that such books of account or documents contain any entries relating to transactions of the society.
8. (8) A person holding an inquiry may, if in his opinion it is necessary for the purpose of inquiry, seize any or all the documents: Provided that any person from whose custody such documents are seized shall be entitled to a receipt thereof and make copies thereof.
9. (9) If the inquiry is held by a person, other than the Registrar then he shall send the report to the Registrar along with his recommendations: Provided that if such inquiry is held by the Registrar himself, he shall forward the report to the Registrar General along with his recommendations.
10. (10) The inquiry report shall be communicated to the society and the applicants, if any.

The Registrar shall consider the inquiry report along with the recommendations of the person holding inquiry, if any, and take any of the following action, namely:––

1. (i) where no irregularities, whatsoever, of procedural or material nature, are found to have been committed by the Governing Body, he shall order closure of the inquiry along with information thereof to the society and complainants, if any;
2. (ii) where the irregularities or violations committed by the society are found to be of procedural nature, which are rectifiable, he shall direct the society to take recourse to such corrective measures within such time, as he may deem appropriate; or
3. (iii) where the irregularities or violations committed by the society are found to be of a serious or material nature, he shall pass any other appropriate order to meet the ends of justice.

1. (1) Where, based on inspection, inquiry or audit under this Regulation, the Registrar submits a report or recommendation indicating that the Governing Body or a society is not functioning in accordance with the provisions of this Regulation or is acting against the interest of its members, the Registrar shall forward such report or recommendation to the Registrar General.
2. (2) Upon receipt of the report, if the Registrar General is of the opinion that a prima facie case is made out for supersession of the Governing Body, he shall issue a show cause notice indicating the proposed action, consider the response of the society, and if so requested, provide an opportunity of hearing, before passing appropriate order.
3. (3) The Registrar General, after considering the reply, shall pass an order and may appoint an Officer to manage the affairs of the society with such directions as deemed appropriate and the orders passed by the Registrar General in this behalf shall be final.
4. (4) The Officer so appointed under sub-section (2), shall be a Group “B” Officer or of equivalent rank in the service of the Government or any statutory authority or such person who may have retired from a Group “B” or equivalent post from the Government or the Central Government or a statutory authority.
5. (5) Where a retired person is appointed as the Officer, the Registrar General may fix the honorarium or remuneration to be paid to the Officer during the course of his appointment at the prescribed rates and direct such expenditure to be defrayed from the funds of the society.
6. (6) The Officer appointed under sub-section (3) may hold office for a period which shall not exceed one year in the first instance, but whose term may be extended for such further period, as considered necessary, subject to the same not exceeding three years in total.
7. (7) On the appointment of the Officer, the Governing Body shall cease to exercise any powers and perform and discharge any functions or duties conferred or imposed on it under this Regulation or the bye-laws.
8. (8) The Officer shall exercise all the powers of the Governing Body and perform all such functions or duties during the course of his appointment as provided in the bye-laws, subject to any directions from the Registrar General.
9. (9) The Officer may, before the expiry of his term, take necessary action to hold the election of the Governing Body, if so required.
10. (10) If the Officer is, for reasons beyond his control, not able to hold the election of the Governing Body or fails to convene a meeting of the General Body, as the case may be, or in spite of such meeting having been convened, the General Body fails to elect the Governing Body, the Officer shall forthwith send a report to the Registrar who may pass such orders, as may be considered necessary or expedient, either extending the term of appointment of the Officer for a further period or, if satisfied that public interest so necessitates, for the dissolution of the society.
11. (11) The Registrar may, if he thinks appropriate, appoint a committee to advise and assist the Officer so appointed for exercise of the powers and discharge of the duties and functions conferred or imposed on him under this Regulation.
12. (12) Where an order of dissolution is passed under sub-section (10), further action shall be taken in accordance with the provisions of this Regulation.
13. (13) The members of the committee referred to in sub-section (11) shall have such qualifications, as may be prescribed and shall hold the office during the pleasure of the Registrar.