Society's Registration to Supersession of the Managing Committee - Different steps at a glance

• Registration of Society
• Audit
• Inspection of Society
• Inquiry of the Society
• Supersession of Managing Committee
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Registration of Society

This is one of the major activities carried out by the Department of Cooperation. Any Cooperative society should be a registered society under Maharashtra Cooperative Societies Act, 1960. For registration, the members/ Chief Promoter should first apply for name reservation and then for the registration of cooperative societies.

A registered cooperative society has to submit its byelaws to the Registrar for his/her approval. A Cooperative society has to work as per those byelaws.

To de-register any Cooperative society, Registrar has powers to cancel the registration of the societies u/s 21-A of MCS Act.

Following are the functions carried out in Registration.

• Name reservation of society
• Registration of societies/ Application for Registration

The steps involved in the registration process of a society are as follows.
Step 1: Promoters/Chief Promoter applies for name reservation and account opening and submits the form to the respective registrar as per the area of operation and category of society. Please refer to the form in Annexure 15
Step 2: Chief Promoter opens an account in a permitted bank or DCC Bank and acquires the Balance certificate as per the policy for the type of society.
Step 3: Then the Proposed Society fills the registration Form ‘A’ and submits the requisite documents to the respective Registrar Office. The respective Registrar Office then maintains the entry of this application in Register ‘B’ Please refer to the form in Annexure 16 and list of documents required with this form in Annexure 17
Step 4: On verification of submitted documents and application, respective Registrar either approves or rejects the application of the proposed society. In case of any improper or missing supporting documents, the applicants are requested to provide the same within prescribed time frame. In case the registration is approved the same is maintained as an entry in ‘D’ register. In case of rejection, Form ‘C’ is filled by the respective registrar and sent to the Government at Mantralaya. Once verified and satisfied with the documents, registrar issues notification of registration and registration certificate to the proposed society. Also, the By-Laws of the proposed society are approved and registered according to the MCS Act, 1960. Please refer to the Certificate in Annexure 18

Note: After the receipt of the registration form, if there is no action taken by the respective registrar for a period of 2 months, the society will be considered as Registered and issuing of the registration certificate becomes mandatory to the respective registrar. This process is called as Deemed Registration.

Particulars	Description
Process Name	Registration of cooperative societies
Stakeholders	Promoter/ Chief Promoter, Registrar
Entry Criteria	Applying for Registration of cooperative societies in Form A along with other documents to Registrar.
Process Description	Promoter/s submits application along with necessary documents to the respective office. Respective office (Taluka/District/Division) verifies application and all the documents and also checks authenticity of the documents. It also gives opportunity to raise objections (if any) to existing societies. Once satisfied with all documents Registrar issues Certificate in that effect to the society. In case of refusal of registration, the refusal order along with the reasons has to be communicated to the Chief Promoter.
Exit Criteria	Registrar register society and issues certificate. Registrar rejects application for registration

Audit

Conducting an audit of a Cooperative society is another major activity carried out by the Department of Cooperation. An Audit activity is carried out to know whether a particular Cooperative society is working as per the Acts & Rules and its byelaws. This is the process of examining financial activities of a Cooperative society. Government Auditors, certified auditors and Chartered Accountants (CA) can audit the specified -u/s 81-1(A), notified - 81-1(B) and others Cooperative societies respectively. Government Auditors are the department's staff members assigned this auditing job. As department cannot conduct Audit of huge no of society’s provision have been made to allow certified auditors and C.A.s to conduct the audit of the society. Department can take statutory actions if Audit findings suggest so.

Following are the functions carried out in this section.

• Maintaining Auditor's list/panel of govt. auditors, certified auditors and C.A.
• Displaying Panel of Auditors, choosing auditor from panel
• Scheduling \ rescheduling of societies for audit- preparing “Annual Audit Program"
• Maintaining audit findings or audit report
• Preparing monthly reports of audit status, yearly report of audit program conducted previous year (for performance evaluation)

Audit rectification u/s 82 of MCS Act is also an important aspect. This enables the Department to check whether rectifications on the various points, raised in the audit are done to the satisfaction of the Registrar or otherwise. If the rectification report is not satisfactory, Registrar will take immediate steps to take remedial steps against the society.

The steps involved in the audit process of a society are as follows.

• Step 1: The Registrar and government auditors prepare the Audit Program.
• Step 2: The designated category of auditors then audit the respective type of societies.
• Step 3: The Audit report is submitted to the registrar as the case may be.

Particulars	Description
Process Name	Annual Audit of Cooperative Societies
Stakeholders	Govt. Auditors, Certified Auditors, C.A., Registrar, Societies
Entry Criteria	Preparing Annual lists of the Societies due for audit i.e. Annual Audit Program
Process Description	Annual lists of the Societies due for audit u/s 81(1)(A) is prepared by the Registrar. Annual Audit Programs prepared and monitored as per the Annual list for societies u/s 81(1)(A) The Societies due for audit u/s 81(1)(B) are required to appoint their auditor from the Panel, maintained by department. Panel of Certified Auditors maintained and updated tri-annually by the Divisional Joint Registrars. Auditors conduct Audit of the society and submit Audit report to the registrar.
Exit Criteria	Auditors submit Audit Report of the society

Inspection of Society

The DoC is also engaged in conducting an inspection of Cooperative societies. The Registrar has a right to prepare the inspection schedule u/s 84 and u/s 89/A. The inspection officer has to carry out the inspection activity and has to submit the inspection report, consisting of the findings of an inspection, performance evaluation of the society, to the DoC.

Annual Inspection Programs - Annual inspection program will be checked in such a way that provisions of the Rules and byelaws of the Society are being properly followed, whether there are any irregularities, misappropriation, This program will automatically generate such type of societies so that the inspection of these societies can be taken up at the right time. Monitoring inspections of the State Level Societies can be done on yearly basis.

Following are the functions carried out in this section.

• Scheduling of inspection program
• Preparing inspection schedule
• Maintaining inspection findings/ inspection report
• Maintaining status of inspection
• Preparing various reports

The steps involved in the inspection process of a society are as follows.

• Step 1: The Registrar prepares the Inspection Schedule for cooperative societies under section 84 and 89 of the MCS Act.
• Step 2: The inspection officer then inspects the respective society.
• Step 3: The inspection report is submitted to the registrar.

Particulars	Description
Process Name	Inspection of Cooperative Societies
Stakeholders	Registrar, Inspection Officer (I.O.), Societies
Entry Criteria	Registrar prepares list of Societies for regular inspection
Process Description	Registrar prepares list of Societies for inspection. Registrar/Cooperative Officer (I.O.) inspects a society under Section 84 or Section 89(A) or appoints Inspection Officer for inspection. I.O. inspects the Society as per provisions of the Act and Rules and business of society as per provisions of its Byelaws. I.O. officer prepares Inspection Report and submit it to the Registrar.
Exit Criteria	I.O. submits Inspection Report to Registrar

Inquiry of the Society

After conducting an audit or an inspection of a particular Cooperative society, the DoC can further conduct detail inquiry of that Cooperative society u/s.83 and/or 88 of MCS Act,1960. Registrar prepares the schedule for the inquiry. The inquiry officer carries out an inquiry and submits the inquiry report.

Following are the functions carried out in this section.

• Scheduling the Inquiry
• Maintaining Inquiry report details
• Monitoring Inquiry process
• Preparing reports

On the basis of the Audit Report/Inspection Report or any complaints arising against the cooperative society, an inquiry probe is raised under section 83 &/or 88 of the MCS Act.

The steps involved in the Inquiry of a society are as follows.

• Step 1:The Registrar prepares the Inquiry Schedule.
• Step 2: The designated Inquiry officer conducts inquiry on the said cooperative society.
• Step 3: The inquiry report is submitted to the registrar.

Particulars	Description
Process Name	Conducting Inquiry of Cooperative Societies
Stakeholders	Administrator, Managing Committee, Registrar
Entry Criteria	Inspection report or audit report leads to inquiry process
Process Description	If Inspection report or Audit report points to some critical issues in the societies and demands for detail inquiry Registrar appoints inquiry office and asks to submit detail inquiry report. Inquiry officer conducts the detail inquiry of the society and submits inquiry report to the Registrar.
Exit Criteria	Inquiry Report

Supersession of Managing Committee

After an inquiry of the society, the Registrar receives the inquiry report u/s 17 H & u/s 78. The Registrar submits the inquiry report to the Managing Committee of a particular society for explanation on certain issues mentioned in inquiry-report. If found reasonable under Maharashtra cooperative society Act, 1960, he issues order for supersession of M.C. Registrar appoints a Administrator in place of M.C. who in turn take charge of M.C.

This activity is carried out for better functioning and working of any Cooperative society. Job of Administrator is to conduct new elections of M.C. and meantime take charge of society.

Following are the functions carried out in this section.

• Supersession of M.C.
• Monitoring Supersession of M.C.
• Preparing reports

Based on the inquiry report the registrar then initiates action against the Managing Committee under section 17H & 78 of MCS Act.

The steps involved in the Supersession of Managing Committee of a society are as follows.

• Step 1: The Registrar, based on the findings of the inquiry report initiates action against the M.C. of the respective cooperative society.
• Step 2: The registrar issues a show cause notice against the M.C. and demands an explanation.
• Step 3: If the explanation is found to be non-satisfactory, the registrar appoints an Administrator for that particular society.
• Step 4:The Administrator then takes charge of that particular society.

Particulars	Description
Process Name	Supersession of M.C.
Stakeholders	Administrator, Managing Committee, Registrar
Entry Criteria	Inquiry report leads to this process
Process Description	If Inspection report or Audit report points to some critical issues in the societies and demands for detail inquiry, registrar appoints inquiry officer and asks to submit detail inquiry report. If Managing committee is found to be misbehaving, registrar appoints administrator in place and superceeds M.C. Administrator's work is to handle day-to-day activities of society and preparing society for the election of new M.C.
Exit Criteria	Supersession of M.C. Liquidation of Cooperative Society