(4)In addition to the matters referred to in the order under sub-section (1) the auditor shall state in his report-(a)whether or not the information and explanation required by him have been found to be satisfactory;(b)whether or not the transactions of the co-operative bank which came to his notice have been within the powers of the co-operative bank;(c)whether or not the returns received from branch offices of the co-operative bank have been found adequate for the purpose of his audit;(d)whether the profit and loss accounts, shows a true balance or profit or loss for the period covered by such account;(e)any other matter which he considers should be brought to the notice of the Reserve Bank and the shareholders of the co-operative bank.]'[(t) in section 31,-(i)for the words "within three months" and "of three months", the words "within six months" and "of six months" shall, respectively, be substituted;(ii)for the second proviso, the following proviso shall be substituted, namely:-"Provided further that a co-operative bank, other than a primary co-operative bank, shall furnish such returns also to the National Bank.";](u)sections 32 to 34 shall be omitted;(v)in section 34-A, sub-section (3) shall be omitted;(w)in section 35,-(i)in sub-section (1),-(a)for the words and figures "section 235 of the Companies Act, 1956 (1 of 1956)", the words "any law relating to co-operative societies for the time being in force" shall be substituted;(b)[ the following proviso shall be inserted at the end, namely:- [Substituted by Act 1 of 1984, Section 42 (w.e.f. 15.2.1984).]"Provided that the Reserve Bank may, if it considers it necessary or expedient so to do, cause an inspection to be made of a primary co-operative bank under this sub-section by one or more officers of a State co-operative bank in the State in which such primary co-operative bank is registered."];(ii)in sub-section (4), clause (b) shall be omitted;(iii)[ after sub-section (4), the following sub-section shall be inserted, namely:- [Inserted by Act 1 of 1984, Section 42 (w.e.f. 15.2.1984).]"(4-A) Without prejudice to the provisions of sub-section (4), the Reserve Bank may, if it considers it necessary or expedient so to do supply a copy of the report on any inspection or scrutiny to the State co-operative bank and the Registrar of co-operative societies of the State in which the bank which has been inspected or whose affairs have been scrutinised is registered."];(iv)[ in sub-section (6), for the expressions "regional rural banks" and "regional rural bank", wherever they occur, the expressions "co-operative banks other than primary co-operative banks" and "co-operative bank other than a primary co-operative bank" shall, respectively, be substituted;] [Sub-Clause (iii) renumbered as sub-Clause (iv) by Act 1 of 1984, Section 42 (w.e.f. 15.2.1984).](v)[] [Sub-Clause (iv) renumbered as sub-Clause (v) by Act 1 of 1984, Section 42 (w.e.f. 15.2.1984).] the Explanation shall be omitted;(x)in section 35-A, in sub-section (1), in clause (c), for the words "any banking company", the words "the banking business of any co-operative bank" shall be substituted;(y)section 35-B shall be omitted;[(z) in section 36, in sub-section (1),-(a)clause (b) shall be omitted;(b)for clause (d), the following clause shall be substituted, namely:-"(d) at any time, if it is satisfied that for the reorganisation or expansion of co-operative credit on sound lines it is necessary so to do by an order in writing and on such terms and conditions as may be specified therein,-(i)depute one or more of its officers to watch the proceedings at any meeting of the Board of directors of the co-operative bank or of any other body constituted by it and require the co-operative bank to give an opportunity to the officer so deputed to be heard at such meetings and to offer such advice on such matters as the officer may consider necessary or proper for the reorganisation and expansion of co-operative credit on sound lines, and also require such officer to send a report of such proceedings to the Reserve Bank;(ii)appoint one or more of its officers to observe the manner in which the affairs of the co-operative bank or its offices or branches are being conducted and make a report thereon;"];(za)in section 36-A,-(i)for sub-section (1), the following sub-section shall be substituted, namely:-"(1) The provisions of section 11, section 18 and section 24 shall not apply to a co-operative bank which has been refused a licence under section 22 or whose licence has been cancelled under that section or which is or has been prohibited or precluded from accepting deposits by virtue of any order made under this Act or of any alteration made in its bye-laws.";(ii)after sub-section (2), the following sub-section shall be inserted, namely:-"(3) Subject to the provisions of sub-sections (1) and (2), a co-operative society carrying on business as a primary co-operative bank at the commencement of the Banking Laws (Application to Co-operative Societies) Act, 1965 (23 of 1965), or a co-operative society which becomes a primary co-operative bank after such commencement shall, notwithstanding that it does not at any time thereafter satisfy the requirements of the definition of primary co-operative bank [in clause (ccv) of section 5] [Substituted by Act 1 of 1984, Section 42, for " in clause (ccc) of section 5" (w.e.f. 15.2.1984).], continue to be a primary co-operative bank within the meaning of this Act, and may, with the approval of the Reserve Bank and subject to such terms and conditions as the Reserve Bank may specify in that behalf, continue to carry on the business of banking.";[(zaa) after section 36-AA of the principal Act, the following sections shall be inserted, namely:-"36-AAA. Supersession of Board of directors of a multi-State co-operative bank. - (1) Where the Reserve Bank is satisfied that in the public interest or for preventing the affairs of a multi-State co-operative bank being conducted in a manner detrimental to the interest of the depositors or of the multi-State co-operative bank or for securing the proper management of the multi-State co-operative bank, it is necessary so to do, the Reserve Bank may, for reasons to be recorded in writing, by order, supersede the Board of directors of such multi-State co-operative bank for a period not exceeding five years as may be specified in the order, which may be extended from time to time, so, however, that total period shall not exceed five years.
