section 28
Special Audit.
The Telangana Mutually Aided Co-operative Societies Act, 1995Corporate199554 sections
Statutory text
- (1) A Co-operative Society dealing with funds from the Government or other external individual or institutions may be subject to a special audit initiated by the Registrar at the request of such creditor, on such specific terms of reference as agreed to by the Registrar.
- (2) The cost of the special audit under sub-section (1) shall be met by the creditor: Provided that where the special audit reveals serious mismanagement in the Co-operative Society, such costs may be recovered from the Co-operative Society or the persons responsible for the mismanagement.
- (3) Every special audit shall be completed and the report submitted to the Registrar within one hundred and twenty days of its commencement.
- (4) The special audit report shall contain a statement of,-
- (a) every payment which appears to the audit to be contrary to law;
- (b) the amount of any deficiency, waste or loss which appear to have been caused by the gross negligence or misconduct of any person in the performance of duties;
- (c) the amount of any sum received which ought to have been accounted for but is not brought into account by any person; and
- (d) any material impropriety or irregularity which he may be in the expenditure or in the recovery of money due.
- (5) the Registrar shall, within a period of thirty days from the date of the receipt of the special audit report communicate copies of the same to,-
- (a) the applicant-creditor;
- (b) the Co-operative Society concerned; and
- (c) the Co-operative Tribunal where necessary.
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