Section 78(1) in Tamil Nadu Co-operative Societies Rules, 1988
(1)A society may, with the previous sanction in writing of the Registrar, invest the whole or any portion of its funds in the purchase or lease of land or in the purchase, construction or remodelling of any building that may be necessary to conduct its business. The amount of the funds so invested shall be recouped on such terms as may be determined in each case by the Registrar:Provided that this rule shall not apply-(a)to immovable property purchased-(i)by a society at a sale held in execution of a decree obtained by it for the recovery of any sum due to it; or(ii)by a financing bank at a sale held in execution of a decree obtained by a society financed by it, for the recovery of any sum due to such society or at a sale by, or on behalf of, the Liquidator of such society; or(b)to the purchase or lease of lands or purchase, construction or remodelling of buildings of a society, the principal objects of which according to its bye-laws include such purchase, lease, construction or remodelling.
