Section 54 in Rajasthan Co-operative Societies Rules, 2003
54. Writing off of bad debts and losses.
All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, in the audit report of the society released by the Registrar shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the society. All other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable in the audit report may be written off against the Reserve Fund or share capital of the society;Provided that :(i)no bad debts or losses shall be written off without the sanction of the general body;(ii)before any such bad debts or loses are so written off, the society, if it is affiliated and indebted to a Financing Bank, shall first obtain the approval of that Bank in writing and also the approval of the Registrar. If the society is affiliated but not indebted to the Financing Bank and in all other cases, it shall obtain the approval of the Registrar in writing. If the society is a Central Bank, approval of the State Co-operative Bank and the approval of the Registrar shall first be obtained;(iii)in case of societies classified as A or B at the time of last audit, no such permission need be taken if the bad debts are to be written off against the Bad Debt Fund specially created for the purpose;(iv)the Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.
