audit of 243zm (1) the legislature of a state may, by law, make provisions with respect to the maintenance of accounts by the co-operative socictics and the auditing of such accounts at least once in each financial year accounts of co-operalive societies (2) the legislature of a state shall, by law, lay down the minimum qualifications and experience of auditors and auditing firms that shall be eligible for auditing the cooperative societies (3) every co-operative society shall cause tu be audited by an auditor referred to in clause (2) appointed by the general body of the co-operative secicty (4) the accounts of every co-operative society shall be audited before the expiry ia of a period of six months of the financial year to which such accounts relate coavening of the general 243zn the legislature of a state may, by jaw, make provisions that the annual genera! body meeting of every co-operative society shall be convened within a period body meetings of six months of close of the financial year to transact the business as may be provided in such law right of a member to get information 243z0 (1) the legislature of a state may, by law, provide for access to every member of a co-operative society to the books, information and accounts of the cooperative society kept in regular transaction of its business with such member (2) the legislature of a state may, by law, make provisions to ensure the participation of members in the management of the co-operative society providing minimum requirement of attending meetings by the members and utilising the minimum 20 level of services as may be provided in such law (3) the legislature of a state may, by law, provide for co-operative education and training for its members returns 243zp every co-operative society shall file retums, within six months of the 25 close of every financial year, to the authority designated by the state government amongst others, the following, namely:— (a) annual report of its activities; (8) its audited statement of accounts; (c) plan for surplus disposat as approved by the general body of the co- 30 operative society; (d) list of amendments to the bye-laws of the co-operative society; if any; (e) declaration regarding date of holding of its general body meeting and conduct of elections when due; and (f any other information required by the registrar in pursuance of any of 35 the provisions of the state act 243zq (1) the legislature of a state may, by law, make provisions for defining offences and penalites the offences relating to co-operative societies and penalties for such offences (2) a law made by the legislature of a state under clause (1) shail include the commission of the following act or omission as offences, namely: - (a) a co-operative society or an officer or member thereof wilfully making 46 a false return or furnishing false information, or wilfully not furnishing any information required from him by a person authorised in this behalf, {) any person wilfully or without any reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of the a5state act: (c) any employer who, without sufficient cause, fails to pay to a cooperative society amount deducted by him from its employee within a period of fourteen days from the date on which such deduction is made: (a) any officer or custodian who wilfully faits to hand over custady of 5 books, accounts, documents, records, cash, security and other property belonging to a co-operative society of which he is an officer or custodian to an authorised person; and (e) whoever, before, during or after the election of members of the board or office bearers adopts any corrupt practice 10 2432zr the provisions of this part shall apply to the multi-state co-operative sacieties application to muln-state co-operative societies subject to the modification that any reference to "legislature of a state', "state act" or "state government" shal! be canstrued as a reference to "parliament", "central act" or "the central government" respectively application 243zs the provisions of this part shall apply to the union territories and shall in their application to a union territory, having no legislative assembly as if the references to the to union territories legislature of a state were a reference to the administrator thereaf appointed under article 239 and, in relation to a union territory having a legislative assembly, to that legislative assembly: provided that the president may, by public notification, direct that the provisions of 20 this part shat! not apply to any union territory or part thereof as he may specify in the notification continuance of existing lawste 243zt notwithstanding anything in this part, any provision of any law relating to cooperative societies in force in a state immediately before the commencement of the constitution (one hundred and sixth amendment) act, 2006, which is inconsistent with the provisions of this part, shall continue to be in force until amended or repealed by a competent legislature or other competent authority or until the expiration of one year from such commencement, whichever is less" , the co-operative sector, in spite of its voluminous growth and its contribution to various sectors of national economy, have left much to be desired from the point of view of safeguarding the interests of the members and fulfilment of objects for which these institutions were organised elections are often postponed indefinitely and nominated office bearers or administrators take over, thereby reducing the accountability of the management of cooperative societies to their members unprotessional management has led to poor services and low productivity therefore, there is a need to initiate fundamental reforms to revitalise these institutions in order to ensure their contribution in the economic development of the country and to serve the interests of members and public at large and also to ensufe their autonomy, democratic functioning and professional management 2 the "co-operative societies" is a subject enumerated in entry 32 of the state list of the seventh schedule of the constitution and the state legislatures have accordingly enacted legislations on co-operative societies within the framework of state acts, growth of cooperatives on large-scale was envisaged as part of the efforts for securing social and economic justice and equitable distribution of the fruits of development it has, however, been experienced that in spite of considerable expansion of co-operatives, their performance in qualitative terms has not been up to the desired level viewing the need for reforms in the cooperative societies acts of the states, consultations with the state governments have been held at several fora and in the conferences of state co-operative ministers one view that has emerged is for amending the constitution so as to keep the co-operatives free from unnecessary outside interferences and also to ensure their autonomous organisational set up and their democratic functioning 3 the central government is committed to ensure that the co-operative societies in the country are functioning in a democratic, professional, autonomous and economically sound manner with a view to bring the necessary reforms, it is proposed to incorporate a new part in the constitution so as to provide for certain provisions covering the vital aspects of working of co-operative societies like democratic, autonomous and professional functioning the proposed new part in the constitution, inter alia, seeks to empower the parliament in respect of multi-state co-operative societies and the state legislatures in case of other co-operative societies to make appropriate law laying down the following matters, namely:—  (a) provisions for incorporation, regulation and winding up of co-operative societies based on the principles of democratic member-contral, member-economic participation and autonomous functioning: (4) specifying the maximum number of directars of a co-operative society to be not exceeding twenty-one members; (c) providing for a fixed term of five years from the date of election in respect of the elected members of the board and its office bearers; (@) providing for a maximum time limit of six months during which a board of directors of a co-operative society could be kept under suspension: {e) providing for independent professionai audit, () providing for right of information access to the members of the co-operative societies; (g) empowering the state governments to obtain periodic reports of activities and accounts of co-operative societies; (a) providing for offences relating to co-operative societies and penalties in respect of such offences 4 it is expected that these provisions will not only ensure the autonomous and democratic functioning of co-operatives, but also ensure the accountability of management ta the members and other stakeholders and also to provide for deterrence for violation of the provisions of the law 5 the bill seeks to achieve the above objects sharad pawar new deva 15th may, 2006 a billfurther to amend the constitution of india (shri sharad pawar, minister of agriculture and consumer affairs, food and public distribution)  corrigendum to the constitution (one hundred and sixth amendment) bill, 2006{to be/as introduced in lok sabha] page i, after the title, - insert "a bul" new delhi; may 19, 2006 vaisakha 29, 1928 (saka) 