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State of Jammu-Kashmir - Section

Section 23 in The Jammu and Kashmir Dissolution of Muslim Marriages Act, 1999 (1942 A.D.)

23. Services primarily for members.

(1)A cooperatives services shall normally be available to members only.
(2)After two years of its being registered under this Act, any cooperative found to be provided more than 25% of its core services, as specified in its articles of association, in terms of the value of transactions, to non-members in any given financial year may be defined by the Registrar as an "aberrant cooperative" and stand to lose for that year exemptions, if any, provided to it, on the ground that it is a cooperative, by this Act or other laws.
(3)Any cooperative found to be "aberrant" for three years in any continuous period of five years, shall be treated as a cooperative not operating on a cooperative basis and the Registrar or any person may apply to the Court for an order dissolving the cooperative.