Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 125: Fines to be imposed
1) In case anyone is found, either from a complaint of anyone pursuant to Section 132 or while inspecting, monitoring or checking the accounts or from any other means, to have committed any of the following acts, the Registrar or the authority authorised by the Registrar may impose a fine up to five hundred thousand rupees depending upon the nature and gravity of the act so committed:
(a) In case interest is collected on a member in contravention of this Act or Rules framed under this Act,
(b) In case the difference between the interest to be provided for savings and to be charged on credit is more than six percent, interest is charged on,
(c) In case the interest is charged on credit, having capitalized the interest in the main credit amount provided by the cooperative organisation,
(d) In case any member is provided with credit that is more than the prescribed percent of its capital fund,
(e) In case credit investment is made to members, other than those members who are listed at the time of registration of the organisation, without completing a period of three months after acquiring the membership,
(f) In case deposits are collected above fifteen times the primary capital fund,
(g) In case a share dividend of more than eighteen percent of the share capital is distributed,
(h) In case a Cooperative Organisation makes a transaction beyond its working area or carries out transactions with a non-member,
(i) In case a Cooperative Organisation confers membership to an artificial person in contravention of this Act.
2) In case anyone is found, from the content referred to in sub-section (1), to have committed any of the following acts, the Registrar or the authority authorised by the Registrar may impose a fine up to three hundred thousand rupees to that person upon the nature and gravity of the act so committed:
(a) In case of non-compliance with any directive issued or standards pre[1]scribed according to this Act or Rules framed under this Act,
(b) In case of not providing of any statement, document, report, notice, or information to be provided according to this Act or Rules framed under this Act,
(c) In case officials of the Board or the Accounts Supervision Committee are changed haphazardly without holding an election according to this Act,
(d) In case any Cooperative Organisation fails to comply with the terms and conditions specified pursuant to sub-section (4) of Section 15,
(e) In case of commission of any other act in contravention of this Act or Rules framed under this Act.
3) Before imposing the fine pursuant to sub-sections (1) or (2), the Registrar or the authority authorised by the Registrar shall give a time of at least 15 days to the concerned person or Cooperative Organisation to defend the case.
4) The power to impose the fines pursuant to sub-section (1) and (2) shall be exercised District Cooperative Association; and by the Registrar in case of the Province Sectoral Cooperative Association, Provincial Cooperative Association, Specialized Cooperative Association, Central Sectoral Cooperative Association, National Cooperatives Federation and Cooperative Bank and by the authority authorised by the Registrar in case of an Organization, District Sectoral Cooperative Association.