64. (1) The Registrar shall audit or cause to be audited by a person authorised by him by general or special order in writing in this behalf the accounts of every society at least once in each co-operative year.

2) The audit under sub-section (1) shall include an examination of overdue debt if any, the verification of the case balance and securities and a valuation of the assets and liabilities of the society.

(3) The person auditing the accounts of a society shall have re access to the books, accounts papers, vouchers, stocks and other property of such society and shall be allowed to verify its case balance and securities.

(4) the directors, managers, administrators and other officers of the society shall furnish to the person auditing the accounts of a society all such information as to the society’s transactions and working as such person may require.

(1) to audit the accounts of a society shall have power where necessary

(b)to require the production of any book or document relating to the affairs of or any cash securities belonging to the society by any officer, agent, servant , or member in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody.

(6) If at the time of audit the accounts of a society are not complete, the Registrar or the person authorised by him under sub-section

(1) to audit may cause the accounts to be written up at the expense of the society.

(7) Audit fee, if any, due from any society shall be recoverable in the same murmur as is provided in section 85

65  The Registrar, or any person authorised by general or special order in this behalf by him, may inspect a society. For the purpose of inspection, the Registrar or the person so authorised by him     shall at all times have access to all books, accounts, papers vouchers, securities, stock and other property of the society and may, in the vent of serious irregularities discovered during inspection, take them into custody and shall have power to verity the cash balance of the society and to call a committee meting or a general meeting as he may deem necessary in the circumstances. Every officer or a member of the society shall furnish such information with regard to the working of the society as the Registrar or the person making such inspection may require.

66. (1) The Register may of his own motion or on application of a majority of the members of the committee or of not less than one-third of the members of the society, hold an inquiry or direct a person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a society.

(2) The registrar or the person authorised by him under subsection (1) shall have the following powers, namely.

(a) he shall at all times have, for purpose of examination, free access to the books, accounts cash and other properties belonging to or in the custody of the society and may summon any person in possession or responsible for the custody of any such books, accounts documents, securities cash or other properties to produce the same, at any place specified by him.

(b) he may, notwithstanding any rule or bye-laws specifying the period of notice for a general meting of the society, require the officers of the society to call a general meeting at such time and place at the headquarters of the society to consider such matters, as may be directed by him; and where the officers of the society refuse or fail to call such a meeting he shall have power to call it himself ;

(c) he may summon any person any who is reasonable believed by him to have any knowledge of the affairs of the society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath.

(3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws.

(4) The Registrar shall communicate a brief summary of the report of the inquiry to the society, the State Co-operative Bank or a federal society to which the society is affiliated, and to the person or authority, if any, at whose instance the inquiry is made;

67. (1) The Registrar shall. On the application of a creditor of a society, inspect or direct some person authorised by him by order in writing in this behalf to inspect the books f the society;

Provided that no such inspection shall be made unless the applicant

(a) satisfies the registrar than the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and

(b) deposits with the Registrar such sum as security for the cost of proposed inspection as the Registrar may require.

(2) The Registrar shall communicate the result of any such inspection to the creditor.

68. Where an inquiry is held under section 66, or an inspection is made under section 67, the Registrar may apportion the costs, or such of the costs, as he may think fit, between the society the members or creditors demanding an inquiry or inspection and the officers or former officer and the members or past members of the society as the case may be;
Provided, however, that –

(a) no order of the apportionment of the costs, shall be made under this section unless the society or the person liable to pay the costs there under has had a reasonable opportunity of being heard; and

(b) the Registrar shall state in writing the manner in which the costs are apportioned.

 69. Any sum awarded by way of costs under section 68 may be recovered on application to a magistrate having jurisdiction in the place where the person from whom the money is claimable, actually and voluntarily resides or carries on business and such magistrate shall recover the same as if it were a fine imposed by himself.

70. (1) Where in the course of an audit, inquiry, inspection or the winding up of a society, it is fund that any person, who is or was entrusted with the organization or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assts of the society by breach of trust or willful default or negligence or has misappropriated or fraudulenently retained any money or other property belonging to such society, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or cause an inquiry to be made by any person authorised by him by an order in writing in this behalf.

(2) where an inquiry is made under sub-section (1). The Registrar or the person authorised by him may, after giving the person concerned an opportunity of being heard, make an order, requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and compensation to such extent, as the Registrar or the person authorised by him may consider just and proper.

71. (1) Where in the course of an audit under section 64 or an inquiry under section 65 or an inspection under section 65 or 67, it is brought to the notice of the registrar that a paid officer or employee of the society has committed or has been otherwise responsible for misappropriation, breach of trust or other offence, in relation to the society, the Registrar may, if he is satisfied that is prime facie evidence against such paid officer or employee and the suspension of such paid officer or employee is necessary in the interest of the society, direct the committee of the society, pending the investigation and disposal of the matter, to place or cause to be place such paid officer or employee under suspension from such date and for such period as may be specified by him.

(2) On receipt of a direction from the Registrar under sub-section (1) the committee of the registered society shall, notwithstanding any provision to the contrary in the bye-laws, place or cause to be placed such paid officer or employee under suspension forthwith.

(3) The Registrar may direct the committee to extend from time to time, the period of suspension and the paid officer or employee suspended shall not be reinstated except with the previous sanction of the Registrar.

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