Power of Registrar on Accounts of co-operative Society: Rule 40 of the DCS Rules, 2007 specifies Power of Registrar to direct accounts and books to be written up:

The Registrar may, by order in writing, direct any co-operative society to get any or all of the accounts and books, required to be kept by it under rule 39, of these rules written up to such date, in such form and within such time as he may direct. In case of failure by any co-operative society, the Registrar may depute an officer subordinate to him or any Chartered Accountant from the approved panel to write up the accounts and books. In such case it shall be competent for the Registrar to determine, with reference to the time involved in the work, the emoluments of the officer deputed to do so, the charges which the cooperative society concerned shall pay to the Government/Chartered Accountant and to direct its recovery from the society.


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MOST OF THE TIME: It happens that the managing committee of the society do not make the accounts and they do not get the accounts audited by the auditor appointed by the Registrar of co-operative societies. In fact they do not approach the registrar of co-operative societies for appointment of auditor. Once the auditor is not appointed their accounts will not be known to the office of the registrar also.

As per law every auditor of the co-operative society is required to submit the audit report to the registrar of co-operative societies. There after only the members of the managing committee can present these audited accounts to the annual general meeting of the members.

EXCUSES OF NOT GETTING THE AUDIT DONE: The managing committees make several excuses like not received the accounts from the previous managing committee. Another excuse is that they have not received the bills from parties to whom they have made the payments. Reconciliation of accounts is not yet done due to fault of other parties and they are making their efforts to reconcile. Change of Treasurer is also one of the excuse taken by many societies.

PUNISHMENT FOR NOT COMPLETING THE ACCOUNTS: If any member of the society takes up the case, every member of the managing committee in whose period the accounts were not written and audit was not completed in time can be barred for becoming eligible for next terms election of the managing committee.


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  • Prashanth Ambawale says:

    Is there a provision to stop office bearers who have not maintained the accounts without complaining to registrar

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  • Deepti Mehta says:

    Registrar refused to take action and said that if he does not have audit reports, he can do nothing and to approach the court and hence I filed consumer case. they are now auditing accounts for the past 4 years. What should be the next legal step in this regard? What can I request from the Court?

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  • Sujata says:

    Sir since one year i have purchase a flat and also paid all the dues to society for purchasing the flat. But the socity have still not made second owners as members nor issue a share certificate.

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  • N Jha says:

    Dear Sir,
    Kindly advise what are the items to be included in the minutes books. However a budget for expenses and capital expenditure has been approved by the General Body. Is it necessary that the expenses need not be recorded in the minutes book by the MC:
    1. Expenses relating to either of capital nature or the revenue expenses like repairs of building, computers etc. which has been approved in the budget by the GBM;
    2. Where the AMC for lift, Gen set, intercom has been approved by the MC at the time of entering into the contract and the same to be approved as and when the payment is made.
    Kindly advise.

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  • parvez says:

    If society is not issuing the maintenance receipt and not taking the agm not auditing the income and expenditure reports.where to give complain of society they are receiving 5 lacks per year from the mobile towernot showing the accounts please suggest. Reply.

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  • Dilip Ghatge says:

    In our society audit was done & sanctioned in A.G.M., prashsak appointed by registrar
    , he gave clean reports for accounts. Members made complaint, inquiry officer appointed, irregularities found in the accounts. Who is held responsible? What is the. punishment ?

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