Special provisions applicable to eligible Co-operative Banks.

Notwithstanding anything in this Act, the following provisions shall apply to an eligible Co-operative bank, namely:- (i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or amalgamation or reconstruction, of the bank may be made under the provisions of this Act only with the previous sanction in writing of the Reserve Bank; (ii) an order of the winding up of the bank shall be made under the provisions of this Act, if so required by the Reserve Bank in the circumstances referred to in section 13-D of the said Act; (iii) if so required by the Reserve Bank on any of the grounds under section 34 (1) (b) of this Act, an order shall be made under the provisions of this Act for the supersession of the committee of the management or other managing body (by whatever name called) of the bank and the appointment of official Administrator(s) thereof for a period specified by the Reserve Bank that does not exceed one year: Provided that an ex-Director on the Board of any Urban Cooperative Bank, whose Board was suspended/ superseded on the grounds of financial irregularities shall be disqualified from contesting election or co-option to the Board of Directors of any other Urban Cooperative Bank for a period of five years; (iv) an order for the winding up of the bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the committee of management or other managing body (by whatever name called) of the bank and the appointment of Administrator(s) thereof made with the previous sanction in writing or on the requisition of the Reserve Bank shall not be liable to be called in question in any manner; and (v) the liquidator or the insured bank or the transferee bank, as the case may be, shall be under an obligation to repay the Corporation in the circumstances to the extent end in the manner referred to in section 21 of the said Act; (vi) at least 50% of the total value of the deposits of the Bank shall be held by members of the society (Bank) having voting rights; (vii) No member of a board of eligible Coop. Bank shall be eligible to be elected as its chairperson or president after he has held the office as such during two consecutive terms, whether full or part; (viii) notwithstanding anything contained in any other provisions under this Act, the individual share holding of a member of eligible Cooperative Bank should not exceed 5% of the total paid-up share capital of the eligible Cooperative Bank.