Section 71(1) in Sikkim Co-Operative Societies Act, 1955
(1)Where, as the result of an audit under section 55, Or an enquiry under section 6'0 -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-(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 provision 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 utilized, or(b)was grossly negligent in respect of any loss or deficiency. or(c)failed to bring into account any sum which ought to have been brought into account, or(d)misappropriation or fraudulently retained any property of the society; or(e)committed breach of trust in relation to the society; the Registrar may inquire into the conduct of such' officer or member of the managing or other controlling body.
