Section 71(1) in The Assam Co-operative Societies Act, 1949
(1)Where, as the result of an audit under Section 55, or an enquiry under Section 60 or an inspection under Section 61 or a report made in the course of the winding up of a registered society, it appears to the Registrar that any member, officer or employee, past or present, of the society has at any time within a period of four years prior to the date of such audit, inspection, inquiry or report, as the case may be-(a)intentionally, whether individually or as an assenting member of any managing or other controlling body, made or authorised any payment or granted any loan which is contrary to the provisions of this Act or to the rules or bye-laws or failed to take timely steps to recover any loan at the due date or if it was being improperly utilised; or(b)was grossly negligent in respect of any loss or deficiency; or(c)failed to bring account any sum which ought to have been brought into account; or(d)misappropriated or fraudulently retained any property of the society; or(e)committed breach of trust in relating to the society;the Registrar may inquire into the conduct of such officer or members of the managing or other controlling body.
