Inspection

(1) The Registrar may on his own motion or on the application of a creditor of a society, inspect or direct any person authorised by him by a general or special order in this behalf to inspect the books of the society. Such inspection shall be completed within a period of three months from the date of receipt of order of inspection by the Inspecting Officer so appointed. (2) The Registrar or any person authorised by him under sub-section (1) shall prepare a report of inspection which shall be communicated to the Managing Committee of the Society together with the findings of the Registrar thereon. It shall be the responsibility of the Managing Committee to place the inspection report together with the findings of the Registrar before the General Body or Special General Body convened for the purpose for its information, within a period of one month of the communication of the inspection report by Registrar. The Registrar shall be the competent to initiate action under the provisions of this Act, if the Committee fails to take action as aforesaid: Provided that notwithstanding anything contained in this Act and Rules made thereunder, the bye-laws of a society and the action of the society in placing the inspection report along with the findings of the Registrar, the Registrar shall not be precluded from taking, follow up action as may be required on the basis of inspection report: Provided further that such action shall not be nullified even if the General Body of the Society passes a resolution negativing the findings of the Registrar: Provided also that the Registrar may for reasons to be recorded in writing extend the period of three months for completion of inspection for a further period not exceeding two months. Explanation:- For the purposes of this section, „Managing Committee‟ includes a Committee constituted under section 31 (1) (a) and a person-in-charge appointed under section 32 (7) (a) and also Administrator(s) appointed under section 34 of the Act.