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Friday 14 October 2022

Section 73-CA of MCS ACT 1960 : Disqualification of committee and its members

73-CA.Disqualification of committee and its members

(A-1) In the case of a society, which gives loans to members for purchasing machinery, implements, equipments, commodities or other goods, or which deals in such goods, no member, who or whose member of the family is a dealer in such goods or is a director of a company or a partner in a firm carrying on business in such goods, in the area of operation of the society shall be eligible for being elected or nominated as a member of the committee of such society.

   Explaination.—For the purposes of this sub-section, the expression “family” shall have the same meaning as explained in the Explanation I, to sub-section (2) of section 75.]

   (1)Without prejudice to the other provisions of this Act or the rules made thereunder in relation to the disqualification of being a member of a committee, no person shall be eligible for being appointed, nominated, elected, co-opted or, for being a member of a committee, if he—

        (i) is a defaulter of any society ;

         Explanation.—For the purposes of this clause, the term “ defaulter ” includes—

             (a)in the case of a primary agricultural credit society, a member who defaults the repayment of the crop loan on the due date ;

             (b)in the case of term lending society, a member who defaults the payment of any instalment of the loan granted to him ;

             (c)in the case of any society,—

                     (i)a member who has taken anamat or advance; or

                     (ii)a member who has purchased any goods or commodities on credit or  availed himself of any services from the society for which charges are payable; and fails to repay the full amount of such anamat or advance or pay the price of such goods or commodities or charges for such service, after receipt of notice of demand by him from the concerned society or within thirty days from the date of withdrawal of anamat or advance by him or from the date of delivery of goods to him or availing of services by him, whichever is earlier ;

             (d)in the case of non-agricultural credit societies, a member who defaults the payment of any instalment of the loan granted ;

             (e)in the case of housing societies, a member who defaults the payment of dues to the society within three months from the date of service of notice in writing served by post under certificate of posting demanding the payment of dues ;

             (f)in the case of District Central Co-operative Bank or of the State Co-operative Bank, a member, if he,—

                  (i)is a person who represents a society other than a primary agricultural credit co-operative society on the board of a District Central Co-operative Bank or the State Co-operative Bank, if the society to whom he represents has committed a default towards the payments of such Bank for a period exceeding ninety days ;

                  (ii)is a person who is a defaulter of a primary agricultural credit co-operative society or is an office bearer of a defaulting primary agricultural co-operative credit society ;

                  (iii)is a person who represents a society whose Managing Committee is superseded.]

        (ii)has, in the opinion of the Registrar, deliberately committed breach of co-operative discipline with reference to linking up of credit with co-operative marketing or co-operative processing ; or

               (ii-a) has been classified as non-active member under sub- section (2) of section 26 ; or]

        (iii)has been held responsible under section 79 or 88 or has been held responsible for payment of costs of inquiry under section 85 ; or

        (iv)has incurred any disqualification under this Act or the rules made thereunder ; or

        (v)carries on business of the kind carried on by the society either in the area of operation of the society or in contravention of the provisions of 4[clause (b) of sub-section (A1) ; or]]


        (vi)is a salaried employee of any society (other than a society of employees themselves) or holds any office of profit under any society, except when he holds or is appointed to the office of a Managing Director or any other office declared by the State Government by general or special order not to disqualify its holder or is entitled to be 1[or is nominated as functional director on the committee of a society under sub-section (2) of section 2[73AAA] ] ;

        (vii)has more than two  children :


         Provided that, a person having more than two children on the date of commemcement of the Maharashtra Co-operative Societies (Second Amendment) Act, 2001 (hereinafter in this clause referred  to as “ the date of such commencement ”), shall not be disqualified under this clause so long as the number of children he had on the date of such commencement does not increase :

         

Provided further that, a child or more than one child born in a single delivery within the period of one year from the date of such commencement shall not be taken into consideration for the purpose of disqualification mentioned in this clause.

         

Explanation.—For the purposes of this clause,—

             (a)where a couple has only one child on or after the date of such commencement, any number of children born out of a single subsequent delivery shall be deemed to be one entity ;

             (b)“ child ” does not include an adopted child or children.]

        

(viii) is held guilty for any offence under section 146 and convicted under section 147 ; or


        (ix) is convicted with imprisonment of not less than one year for an offence under the provisions of any law for the time being in force.]

    (2)A member who has incurred any disqualification under sub-section (1), shall cease to be a member of the committee and his seat shall thereupon be deemed to be vacant.

    (3) A member of a committee who has ceased to be a member thereof, on account of having incurred disqualification under sub-section (A1) and clauses (i) to (ix) of sub-section (1) shall not be eligible to be re-elected, re-co-opted or re-nominated as a member of the committee till the expiry of the period of next term of five years of the committee from the date on which he has so ceased to be a member of the committee.

            (3A) In case of an insured Co-operative Bank, if an order for supersession of its Committee, as per the requisition of the Reserve Bank of India, is made under section 110A, at any time within the period of ten years before the date of commencement of the Maharashtra Co- operative Societies (Amendment) Act, 2016 or at any time after such commencement, then no member of such Committee shall be eligible for being re-appointed, re-nominated, re-elected or re-co-opted on the Committee of such bank or, for being a member, or for being appointed, nominated, elected or co-opted, as a member of Committee of such bank or any other bank, for a period of two terms of the Committee from the date of order of supersession of the Committee.]

    (4)A member of a committee who has ceased to be a member thereof, on account of having incurred any disqualification other than disqualifications, referred to in sub-section (3) shall, unless otherwise specifically provided in this Act, be eligible to be re-nominated, re-co-opted or re-elected as a member of the committee as soon as such disqualification ceases to exist.]