Cooperatives Act 2074

Chapter 19 Offences, Punishment, Fines and Appeal

Section 122: Offences deemed to be committed
Whoever commits any of the following acts shall be deemed to have committed an offence under this Act:
(a) If one operates a Cooperative Organisation without registration or a Cooperative Organisation registration of which has been revoked, or if any person, firm or company carries out a transaction or operates business or services or other activity with the use of the word “cooperative” or its translated version in English language its name,
(b) If the savings of members are used for any purpose other than the purposes stated in this Act or Rules or Byelaws framed under this Act,
(c) If one disburses credits beyond the prescribed amount without collateral or security,
(d) In case a member of the Board, manager or employee embezzles assets of the Cooperative Organisation or savings or share amount,
(e) If one embezzles an amount by disbursing credits to any member, his or her relative or any other person or employee in a manner that it could not be recovered,
(f) If any member of a Cooperative Organisation on his or her own or in collusion with other members mobilises a share amount or savings amount on his or her free will, rendering a loss to the Cooperative Organisation,
(g) If one avails credits by submitting false or wrong statements, the collateral mortgaged is immature or if credits are embezzled,
(h) If a Cooperative Organisation makes an investment in violation of this Act or Rules or Byelaws framed under this Act or raises money with that objective,
(i) If one avails or provides credits having formed false enterprises,
(j) If credit is availed of or disbursed with unnaturally excessive valuation of collateral,
(k) If credit is availed or disbursed with unnaturally high assessment of project costs on the basis of a false statement,
(l) If credit is availed or disbursed again with the already mortgaged collateral security given to any person or Cooperative Organisation without duly releasing it, or if the credit is borrowed or disbursed exceeding the value of the collateral,
(m) If the credit availed from a Cooperative Organisation for one purpose is abused or caused to be abused by using it for any other purpose,
(n) If any matter written on any document or account or ledger of Cooperative Organization is removed or deleted or tempered by any means or thereby distorting the meaning or sense or writing something otherwise or in case separate account is maintained thereby causing benefit or loss to oneself or to any other person, or forgery is committed for causing loss to anyone by misleading others with representing the untrue or non-existent facts to be true or existent or by getting a document signed with an alteration in the date, number or particular or causing to be committed the same,
(o) If a valuator of assets valuates any movable or immovable assets, while valuating it for collateral security or auction of the collateral or for any other purpose, with excessively high valuation or lower or false valuation, thereby causing loss to the Cooperative Organisation or causing it to be committed,
(p) In case any act is committed with the
malafide
intention of causing loss to a Cooperative Organization or causing illicit benefit or loss to anyone by getting something to be done or forbearing to do, by doing or not doing favour to anyone, by giving or accepting any amount, by purchasing or selling any goods, services without price or with less price or by giving or accepting donation or gift or souvenir, by preparing false document or false translation,
(q) In case of carrying out or causing to be carried out auditing of any Cooperative Organisation with the intention of causing loss to the Cooperative Organisation or members or depositors or preparing or causing to be prepared a false auditing report thereof.