Section 77(1) in The Multi-State Co-Operative Societies Act, 2002
(1)Where the Central Government is of the opinion—(a)that the affairs of any multi-State co-operative society are not being managed in accordance with self-help and mutual aid and co-operative principles or prudent commercial practices; or with sound business principles; or(b)that any multi-State co-operative society is being managed in a manner likely to cause serious injury or damage to the interests of the trade, industry or business to which it pertains; or(c)that the financial position of any multi-State co-operative society is such as to endanger its solvency,the Central Government may at any time by order direct that a special audit of the multi-State co-operative society’s accounts for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order appoint either a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) or the multi-State co-operative society’s auditor himself to conduct with special audit:Provided that the Central Government shall not order for special audit of a multi-State co-operative society’s accounts if that Government or the State Government either by itself or both hold less than fifty-one per cent. of the paid-up share capital or of the shares in such multi-State co-operative society.
