Cooperatives Act, 2017

Provided that after the commencement of this Act, such associations shall, within one year, submit an operational report to the Registrar or the officer authorized by the Registrar, detailing the following information up to the time of commencement of this Act:-
 (a) Status of membership expansion according to province, district, local level and ward within the existing area of operation,
 (b) Status of commercial service operation according to province, district, local level and ward within the existing area of operation, and
 (c) Other details as prescribed.
(6) After the operational report is submitted pursuant to Sub-section (5), the Registrar or the officer authorized by the Registrar may, after conducting necessary inspections, direct the concerned cooperative society to re-determine its area of operation as follows:-
 (a) Reduce the area of operation by removing provinces, districts, local levels and wards where membership has not expanded as per details mentioned in Clause (a) of Sub-section (5), or where membership has expanded below the prescribed number, or where there is no geographical continuity,
 (b) Reduce the area of operation by removing provinces, districts, local levels and wards where no commercial service is being operated as per details mentioned in Clause (b) of Sub-section (5), or where commercial service operation is found to be of an amount or proportion less than the prescribed amount or proportion of total transactions,
 (c) Maintain an appropriate area of operation by excluding additional provinces, districts, local levels or wards to increase commercial efficiency to cover operating costs and maintain participatory democratic control of members in the association's operation,
 (d) Maintain an appropriate area of operation by excluding additional provinces, districts, local levels or wards to facilitate obtaining membership of district or provincial subject-wise unions or district or provincial unions for commercial and promotional services.
(7) If directed by the Registrar or the officer authorized by the Registrar pursuant to Sub-section (6), the cooperative society shall, within one year, amend its bye-laws and re-determine its area of operation.
(8) If the concerned cooperative society fails to re-determine its area of operation within the prescribed period pursuant to Sub-section (7), the Registrar or the officer authorized by the Registrar shall, subject to Sub-section (2), re-determine the area of operation of such cooperative society within three months.
(9) A cooperative society unsatisfied with the re-determination of the area of operation by the Registrar or the officer authorized by the Registrar pursuant to Sub-section (8) may file a petition for review to the Registrar if the decision was made by the officer authorized by the Registrar, or to the Ministry if the decision was made by the Registrar, within thirty-five days from the date of receipt of information regarding the re-determination.
(10) Upon receipt of a petition pursuant to Sub-section (9), the Registrar or the Ministry shall complete the review within sixty days.
(11) Notwithstanding anything written elsewhere in this Section, a cooperative society may voluntarily amend its bye-laws at any time to re-determine its area of operation by reducing it.
(12) Other provisions relating to re-determination of the area of operation shall be as prescribed.
(13) The procedure for expanding the area of operation pursuant to Sub-sections (2) and (3) shall be as prescribed.