Section 32 - Amendment of section 86 - Multi-State Co-operative Societies (Amendment) Act, 2023

Amendment of section 86. 32 . In section 86 of the principal Act, (a) in sub-section (1), after the words and figures under section 79 , the words and figures or section 108 shall be inserted; (b) in sub-section (2), (i) for clause (a), the following clause shall be substituted, namely: (a) where the number of members or the number of societies or the number of persons, as the case may be, has at any time reduced below the number of members or societies or persons as specified in sub-section (2) of section 6: Provided that the multi-State co-operative society shall be given six months time to restore the number of members or societies or persons to the requisite number; ; (ii) in clause (b), for the words co-operative principles. , the words co-operative principles; or shall be substituted; (iii) after clause (b), the following clause shall be inserted, namely: (c) where the Central Registrar has reasons to believe that the registration was obtained by misrepresentation of facts, submission of false or misleading information, suppression of material facts or fraud thereby compromising the spirit of co-operation. . (c) for sub-section (5), the following sub-section shall be substituted, namely: (5) Notwithstanding anything contained in this section, in case of winding up of multi-State co-operative banks, the provisions of the Banking Regulation Act, 1949 (10 of 1949.) shall also apply. . (d) in sub-section (6), the following shall be inserted, namely: Provided that prior to winding up, no objection from the institutional lenders, who have outstanding loans from the society, shall be required in writing. Explanation. For the purposes of this proviso, the expression institutional lenders includes banks, savings and loan association, trust company, insurance company, real estate investment trust, pension fund and the like. .