Penalty for certain misdemeanours

Where it appears to the Registrar, that any person has contravened the provisions of this Act or Rules or Bye-Laws. (a) By sitting or voting or exercising his right as members, or as a member of any managing or controlling body, or voting in the affairs of a registered society as a representative of another society which is a member of such society, when such person was not entitled so to sit, vote or exercise such rights, as the case may be; or (b) By utilizing a loan for a purpose different from that for which it was granted; the Registrar may, after affording such person an opportunity to be heard by an order in writing, direct him to pay to the assets of the society by way of penalty such sum not less than Rs. 5,000 or asthe Registrar may deem fit.