Section 56 in Rajasthan Co-operative Societies Rules, 2003
56. Investment of other funds.
(1) A society may invest any of its funds (other than the reserved fund) in any of the modes specified in section 49 when such funds are not utilised for the business of the society.Explanation.- For the purpose of this sub-rule, "business of society" shall include any investment made by the society in immovable property with the prior sanction of the Registrar in the process of recovery of the society's normal dues or for the purpose of construction of building or buildings for its own use.(2)The Registrar may, in the case of any society or class of societies, specify by a special or general order the maximum amounts to be invested in any class or classes of securities.(3)Every Society which has invested an amount not less than 10 percent of its working capital in securities shall be required to constitute an investment fluctuation fund. The Registrar may direct that a specified percent of the net profits every year shall be credited to the investment fluctuation fund until, in his opinion, the amount of the funds is adequate to cover anticipated losses arising out of the disposal of the securities.(4)A society may, with the previous sanction of the Registrar, invest the whole or any portion of its funds in the purchase or lease of land or in the acquisition, construction or renewal of any building that may be necessary to conduct its business. The amount of the funds invested shall be recouped on such terms as may be determined in each case by the Registrar.(5)The provision of sub-rule (4) 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 brought by the liquidator or such society; or(b)to the purchase or lease of lands or purchase, construction or renewal of buildings by a society whose objects according to its bye-laws include such purchase, lease construction or renewal.(6)No recoupment of the amount invested under this rule shall be necessary where the investment is made -(a)by a society from its building fund constituted out of profits;(b)by a society, other than a credit society, in which the share capital raised from the members is intended to build up the special kind of business for which it has been registered.(7)Nothing in this rule shall apply to investment of the reserved fund of a society and such investment shall be governed by rule 57.
