Helping Hands Co-operative society is working for the welfare of its members since last 10 years. Governing body observed that the society had some…

According to section 32 of the Central Act, a society may invest its funds in any one or more of the following: (i) In the Central or State Co-operative Bank. (ii) In any of the securities specified in section 20 of the Indian Trusts Act, 1882. (iii) In the shares, securities, bonds or debentures of any other society with limited liability. (iv) In any co-operative bank, other than a Central or State co-operative bank, as approved by the Registrar on specified terms and conditions. (vi) In any other moneys permitted by the Central or State Government. In the given case, Helping Hands Co-operative society invested the funds in blue chip mutual funds due to which auditor gave a qualified opinion. Helping Hands Co-operative society should invest the funds in accordance with Section 32 of Central Act as investment in blue chip mutual funds is not permissible.