Section 109(8) in Karnataka Co-Operative Societies Act, 1959
(8)[ If any person collecting any money as share money for a co-operative society in formation does not within a period of seven days from the date of such collection deposit the same in a co-operative bank specified by the Registrar in this behalf in the name of the co-operative society to be formed, he shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to three thousand rupees.
