Section 54 in The Maharashtra Cooperative Societies Rules, 1961
54. Utilisation and investment of reserve fund.
(1)A society shall, in addition to the modes specified in clauses (a) to (d) of Section 70, invest or deposit its reserve fund in any one or more of the following permitted modes namely-(i)[ ***] [Deleted by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).](ii)[ ***] [Deleted by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).](iii)In debentures issued by the Apex [Co-operative Agricultural and Rural Multipurpose Development Bank or State or Central Government] [Substituted 'Land Development Bank' by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).] or in Government loans, or(iv)In any immovable property [***] [Deleted 'specified by' by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).]the Registrar by a general or special order:[Provided that, in the case of a society whose reserve fund is equal to or more than its paid-up share capital, such society may invest that portion of the reserve fund which is in excess of its paid-up share capital, or a portion thereof, in its business decided by general body meeting with prior approval of the Registrar.] [Substituted by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).]Provided further that, in the case of Central Co-operative Banks [or] [Substituted 'and' by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).] the State Co-operative Bank, the Registrar may, by general or special order, authorise such Banks to invest fifty per cent of their reserve fund in their business.(2)No society whose, reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund except with the sanction of the Registrar previously obtained in writing.(3)In the case of a society constituted with the object of co-operative housing on a co-partnership basis, the reserve fund may be utilised for expenditure on the maintenance, repair, and renewal of buildings of society.(4)In the case of a processing society the reserve fund may be utilised in the acquisition, purchase or construction of lands, buildings [and development of lands, buildings and machinery as decided in the general body meeting with prior approval of the Registrar.] [Substituted 'and machinery' by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).](5)[ Where no bank is eligible as prescribed under sub-clause (a) of section 70, the society may invest its funds in a mode permitted by the State Government or the Registrar as authorised by the State Government in this behalf.] [Inserted by Notification No. CSL-2014/697/C.R.04/13C, dated 30.8.2014 (w.e.f. 23.12.1961).]
