: (1) According to section 132, if anyone is found to have committed any of the following acts during the inspection, monitoring or checking of the accounts of a cooperative organization in accordance with section 132, the registrar or an officer authorized by the registrar shall take such action based on the nature and seriousness of such act. A person will be fined up to five lakh rupees:-
(a) If interest is taken from a member contrary to this Act or the rules made under this Act,
(b) If the difference between the interest rate of savings and loans provided by the co-operative society is more than six percent,
(c) If the interest charged on the loan provided by the cooperative is capitalized on the original loan and the interest is charged on that basis,
(d) If a loan is granted to a member in excess of the specified percentage of its capital fund,
(e) If a loan is made to a member other than the member at the time of registration of the organization before the expiry of three months from the date of membership,
(f) In case of accumulation of savings exceeding fifteen times of the primary capital fund,
(g) In case of distribution of share dividend exceeding eighteen percent of the share capital,
(h) If a co-operative society transacts business outside its scope or transacts business with non-members,
(i) If a cooperative society gives its membership to an artificial person contrary to this Act.
(2) If any person is found to have committed any of the following acts by virtue of sub-section (1), the Registrar or an officer authorized by the Registrar may impose a fine of up to three lakh rupees on the person committing such act based on the nature and seriousness of such act:-
(a) Failure to comply with any instructions or prescribed standards in accordance with this Act or the rules made under this Act,
(b) If any statement, document, report, notice or information required to be given in accordance with this Act or the rules made under this Act,
(c) If the office bearers of the Committee and the Accounts Supervision Committee are voluntarily changed without holding an election in accordance with this Act,
(d) Any co-operative society does not comply with the prescribed conditions under sub-section (4) of section 15In,
(e) If he commits any other act contrary to this Act or the rules made under this Act.
(3) Before imposing the fine as per subsection (1) or (2), the registrar or the officer authorized by the registrar shall give a period of at least fifteen days to the concerned person or cooperative organization to submit a clarification.
(4) The exercise of the right to impose fines under sub-section (1) or (2) shall be exercised by the registrar and institution in the case of provincial subject cooperatives, provincial cooperatives, central subject cooperatives, specialized cooperatives, national cooperatives and cooperative banks, district cooperatives and In case of District Cooperative Union, the officer authorized by the Registrar will do it.