Section 37(1) in The Delhi Co-Operative Societies Act, 2003
(1)If, in the opinion of the Registrar, the committee of any co-operative society [continuously makes default for ninety days] [Substituted by Delhi Act 1 of 2005, section 7, for "persistently makes default" ] or is negligent in the performance of the duties imposed on it by or under this Act or the rules framed thereunder, the byelaws or commits any act which is prejudicial to the interest of the co-operative society or its members or defies the directions issued by the Registrar under section 42 of this Act or [fails to comply with the provisions of section 92 or there is a stalemate in the constitution or function of the committee or fails to initiate recovery of the dues of the financing institution inspite of a notice issued to the co-operative society by the financing institution within a period of ninety days or fails to remit the recovered amount from members, to the financing institution to which the society is indebted within a period of ninety days,] [Substituted by Delhi Act 1 of 2005, section 7, for " fails to initiate action for recovery or fails to recover any dues of a federal co-operative society or any financial institution after the finality of award and issue of recovery certificate or after such recovery fails to pay the recovery amount to the federal co-operative society or the financial institution"] the Registrar may after giving the committee an opportunity to state its objections, if any, by order in writing direct -(a)to hold election of the committee within a period of thirty days by calling a special general body meeting; and(b)if in the opinion of the Registrar, the election of committee is not feasible under the prevailing circumstances, the Registrar shall pass an order in writing to remove the committee and appoint one or more administrators to manage the affairs of the co-operative society for a period not exceeding one hundred and eighty days to be specified in the order, which period may, at the discretion of the Registrar be extended from time to time, [however, that the aggregate period does not exceed three hundred and sixty five days] [Substituted by Delhi Act 1 of 2005, section 7, for "however, that the aggregate period does not exceed five hundred and fifty days"]:Provided that where the co-operative society is a co-operative bank, before issuing of a show-cause notice under sub-section (1), the prior consultation with the Reserve Bank and NABARD shall be necessary;[***] [[The second proviso omitted by Delhi Act 1 of 2005, section 7 (w.e.f. 1-4-2005). The Second Proviso,before omission, stood as under:"Provided further he Government that the supression of the committee of a Co-operative society shall be made only where the Government has equity of fifty-one percentum or more"]](c)Notwithstanding anything contained in this Act, the Registrar in case of the co-operative bank, if so required by the Reserve Bank or the NABARD on requisition from the Reserve Bank to supersede management of a co-operative bank, the Registrar shall supersede the management of such a co-operative bank.
