No inspection under Section 79 of Multi-State Co-operative Societies Act, 2002 shall be made unless a notice has been given to the multi-state…

CA Intermediate · Auditing and Ethics · MTP · May 2025
No inspection under Section 79 of Multi-State Co-operative Societies Act, 2002 shall be made unless a notice has been given to the multi-state co-operative society. Explain clearly when and how such inspection can be made. Also state the powers available with the Central Registrar in this regard along with provisions relating to communication of the inspection report under the said section. (5 Marks)

Suggested Answer and Working Notes:

Inspection of Multi-State Co-operative societies under Section 79 When: The Central Registrar may, on a request from federal co-operative to which a Multi- State Co-operative society is affiliated or a creditor ornot less than one-third of the members of the board ornot less than one-fifth of the total number of members of a Multi-State co-operative society How: By general or special order in writing in this behalf inspect or direct any person authorized by him by order in writing in this behalf to make an inspection into the constitution, working and financial condition of a Multi-State co-operative society. Opportunity of Being heard: No inspection shall be made unless a notice of not less than fifteen days has been given to the multi-state co-operative society. Powers available: The Central Registrar or the person authorized by him shall have the following powers: He shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the event of serious irregularities discovered during inspection, take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the central registrar to call a meeting of the society where such general meeting is, in his opinion necessary.Every officer or member of a Multi-State Co-operative society shall furnish such information with regard to the working of the society as the central registrar or the person making such inspection may require. Inspection Report: A copy of the report of inspection under this section shall be communicated to the Multi-State Co-operative society within a period of three months from the date of completion of such inspection.

Topics: Special Features of Audit of Different type of Entities

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