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State of Uttarakhand - Section

Section 22 in Uttarakhand Self Reliant Co-Operatives Act, 2003

22. Services primarily for members.

(1)A Co-operative's services shall normally be available to members only.
(2)After two years of its being registered under this Act, any co-operative found to be providing more than one-fourth of its core services, as specified in its articles of association, in terms of the value of transactions, to non-members in any given financial year shall be deemed to be an "aberrant co-operative"and may be liable to lose for that year exemptions, if any, provided to it, on the ground that it is a co-operative, by this or other laws.
(3)Any co-operative found to be " aberrant" for continuous three years shall be deregistered or dissolved by the Registrar;Provided that such co-operative shall be given an opportunity of being heard before the deregistration or the dissolution.