Grounds for Refusal of Application

No request of any co-operative society made under Sub-section (3) of Section 58 shall be granted by the Registrar where the society- (i) is of unlimited liability; (ii) was placed below 'C' class in last audit classification; (iii) has overdue against members; (iv) is working with outside borrowing or non-members' deposits; (v) has undischarged financial commitment on the date of application; and (vi) has inadequate reserve fund or the reserve fund is not properly invested outside the business of the society.