Section 48 in The Karnataka Souharda Sahakari Act, 1997
48. [ Winding up by the Registrar. [Substituted by Act 21 of 2004 w.e.f. 31.3.2004.]
(1)If the Registrar after an audit has been made under section 33 or an inquiry has been held under section 35 or on receipt of an application made by not less than three fourths of the members of a Co-operative, is of the opinion that the Co-operative ought to be wound up, he may issue an order directing it to be wound up.(2)Where the Registrar has reasonable cause to believe that a Co-operative.-(a)has not commenced business within two years after registration; or(b)has not carried on business for two consecutive years; or(c)is no longer operating in accordance with the co-operative principles and the provisions of this Act, rules and the bye-laws of the Co-operative,he may suo moto [or on the recommendation of the federal co-operative] require the Chief Executive of the Co-operative to intimate whether such Co-operative is carrying on business or is submitting annual returns.(3)If no reply is received from the Chief Executive within one month, the Registrar shall within fourteen days after the expiry of the said period record that no reply has been received by him and shall publish a notice in the newspaper having wide circulation in the local area to wind up the Co-operative.(4)If the Registrar receives a reply from the Co-operative that it is not carrying on business or is not in operation or does not wish to continue as a Co-operative or can not submit an annual return, he shall publish in the newspaper and send to the Co-operative a notice specifying the date on the expiry of which the Co-operative shall, unless cause is shown to the contrary, be wound up.(5)If the Registrar after considering the reply, if any, is satisfied.-(i)that the Co-operative has no assets and liabilities, he shall issue a certificate that the Co-operative has been wound up and cancel the registration of such Co-operative forthwith; or(ii)that the Co-operative has assets and liabilities, he shall on receipt of a report from the Chief Executive of such Co-operative that a liquidator has not been appointed by the general body after a resolution to wind up has been passed,appoint a liquidator and communicate the same to the Co-operative and the Federal Co-operative.(6)The Registrar may cancel an order for the winding up of a Co-operative, at any time, in any case, where in his opinion, the Co-operative should continue to exist.(7)Notwithstanding anything contained in this section, no Co-operative bank shall be wound up or an order for winding up shall be cancelled except with the previous sanction in writing of the "Reserve Bank or National Bank.]
