Chapter XIII OFFENCES AND PENALTIES

If a society fails to comply with any of the provisions of this Regulation or contravenes any of the provisions thereof, then the society in default shall be liable to penalty which may extend up to two thousand rupees, and in case of a continuing default or contravention, with penalty which may extend to one hundred rupees for each day during which such default or contravention continues.

Where any society fails to rectify the defects directed by the Registrar and where no appeal has been made to the Registrar General under sub-section (1) of section 49 or where such appeal has been made and the Registrar General has not annulled, reversed or modified the order, the Registrar may take steps to have the defects rectified and may recover the cost, which were incurred for rectification of such defects from the officers of the society, who, in his opinion have failed to rectify the defects.

If an office bearer or any employee of the society knowingly or intentionally makes or causes to be made any false entry in, or any omission from any register, account, balance-sheet, or other document, required to be maintained by a society under this Regulation, he shall be liable to penalty which may extend to five thousand rupees and may be removed from the membership of the society.

If any office bearer knowingly or intentionally makes a false return or furnishes false information or wilfully or without any reasonable reason, disobeys any summons, requisition, or other lawful order or direction issued under the provisions of this Regulation or withholds or fails to furnish any information lawfully required from him by the Registrar or Registrar General or person authorised in this behalf under the provisions of this Regulation, he shall be liable to penalty which may extend to five thousand rupees, and in the case of a continuing default or contravention, with penalty which may extend to two hundred rupees for each day during such default or contravention continues.

The penalties under this Chapter shall be imposed by the Registrar General or Registrar or any officer authorised in this behalf by the Registrar General or Registrar, and such sum of penalties shall be credited to the Consolidated Fund of India.

Any party aggrieved by the penalty imposed under sections 40, 42 and 43, shall have the following recourse, namely:––

1. (i) the society concerned may make an appeal, against any penalty imposed under sections 40, 42 and 43, to the Registrar General within a period of sixty days from the date of the imposition of such penalty;
2. (ii) the Registrar General may, in deciding the appeal, annul, reverse, modify or confirm the order of the Registrar; and
3. (iii) where the society fails to rectify the defects directed by the Registrar and where no appeal has been made to the Registrar General under clause (i) or where on the appeal so made, the Registrar General has not annulled, reversed or modified the order, the Registrar may himself take steps to have the defects rectified, and may recover the cost from the officers of the society who, in his opinion, have failed to rectify the defects.

The Registrar may, upon an application in writing received from any society and on sufficient cause being shown, allow further time to such society to comply with any of the provisions of this Regulation on payment of such late fees, as may be prescribed.