EXTRAORDINARY REGD. NO. JK-33

THEJAMMU & KASHMIR GOVERNMENT GAZETfEVol. 123] Jammu. Wed .• the 21st April . 20 I011 st Vai .• 1932. [No. 3-7

Separate paging. is given to this part in order that it may be filed as aseperate campilation.

PART III

Laws. Regulations and Rules passed thereunder.

GOVERNMENT OF JAMMU AND KASHMIRCIVIL SECRETARIAT- LAW DEPARTM ENT

Jammu. the 21st April . 2010.

The following Act as passed by the Jammu and Kashmir StateLegislature rece ived the assent of the Governor on 20th Apri l. 2010and is hereby published for general informat ion :-

TH E JAMM U AND KASHM IR CO-OPERATIVESOCIETI ES (AM ENDMENT) ACT, 2010.

(Act No . X of 2010)

[20th Apri l. 2010J.

An Act to amend the Jammu and Kashm ir Co-operative Soc iet iesAct. 1989 .

2 The J&K Go .... r, Gazette. 21st April. 20 lOt ISI Vai., 1932. (No.3-7

Be it enacted by the Jammu and Kashm ir State Leg is lature inthe Sixty-fi rst Year of the Republic of India as follows :-

I . Short title an d commencement.r-t; I ) Th is Act may becalled the Jammu and Kashmir Co-o perative Societ ies (Amendment)Act , 20 10.

(2 ) It sha ll come into force from the da le of its pub licati on inthe Gov ernment Gazelle .

2. Amendment of sect ion 2, ACI X {if / 9X9.- ln sect ion 2of the Jam mu and Kashmi r Co-operat ive Societies Act. 1989(hereinafter referred to as ' the principal AcC),-

(i) clause (a) shall be renumbered as clause (aa ) thereof andbefore the clause (aa) as so renumbered, the follo wingclau se shall be inserted. name ly :-

"(a) 'Apex Co-operative Bank ' means a Co-operat iveFederation at State level engaged in bus iness ofbanking." :

(ii ) after cla use (b) , the following c lauses sha ll be inserted ,namely :-

"(bb) 'Central Co-operat ive Bank ' mean s a central soc ietyengaged in busine ss of banking .

{bba) 'Chartered Acc ountant' means a mem ber of theInst itute of Chartered Acco untan ts of India withinthe mean ing of Cha rtered Accounta nts Act , 1949(3 8 of 1949):" ,

(iii) aft er clause (e) . the follovving clause shall be inserted,namely :-

"(ee) 'Co-operative Credi t Struc ture Society' includes theApe x Co-operative Bank, a Central Co-operative Bankand a Primary Agri cultural Cred it Soc iety." ;

No. 3·7] The J&K GO\lI. Ga zelle, 2 151Apri l. 20 I0/ 1st Vai.. IQ32. 3

(iv ) after clause {n). the following clause shall be inserted.namel y :-

"( nn) ' Multipurpose Co-operat ive Soc iety ' means a primarysociety. the object of \.... hich is 10 prov ide var iousservices includi ng se rvices rela ting to savin gs. creditbusiness, industry. consumer durablcs to its membcrs .:" :

(v) clause Ip) sha ll be substit uted by the following clau se.namely :-

"{p] ' National Bank"means the National Bank for Agricultureand Rura l Devel opm ent established under section 3 ofNat iona l Bank for Agricult ure and Rura l DevelopmentAct. IQ8 1 (Cent ra l Act No. 6 1 of 1981 j ." : and

(vi) afte r clause (r), the following clause shall be inserted.namel y :-

"{rr} ' Primary Agricultural Co-operative Cred it Soc iety'means a Co -operative Soc iety, by wha tever nameca lled. as define d unde r cla use (cc iv) of sect ion 5 ofthe Banking Regulation Act, 1949 (Central Act 10 of1949) and incl udes a Multipurpose Co-operativeSociety.".

3. Amendment of section 6, Act X of 1989.- ln section 6of the princ ipal Act.-

(i) in sub-section (I ), for the words "t he Registrar shallregister the society provisionally", the words "the Reg istrarsha ll, within one month from the date of receipt ofapp lica tion, register the soc iety provisionall y" sha ll besubstituted ; and

(ii) in sub-section (2). fo r the words " he shall co mmunicate".the words " he shall. with in one month from the date o freceipt of applicatio n. communicate" shall be subst ituted.

4 The J&K Govt. Gazcuc. 21 $1Apri l. :20 10/1 st VaL, 193:2. [No.3-7

4. Insertion of .'\(' c/ ;OIlS 8A ;11 Act .r of /9H9,- After section

8 of the princi pa l Act . the followin g section shall be inserted.namely :-

"SA . Connrsion.- ( I ) A Co -operat ive Credit StructureSociety registered under thi s Act shall be eligible to become

a member of a Centra l Leve l Co-operative regi stered underthe provisions of the Jammu and Kashmir Sel f-ReliantCo-operat ives Act, 1999.

( 2) A Co -operative reg istered under Jammu and KashmirSelf-Rel iant Co-operatives Act. 1999 may beco me the member

of the Co-operative Federatio n registered under th is Act.

(3) A Co-operati ve Credi t Structu re Soci ety may affiliate with,or disa ffi liate from a Co -operative Federatio n of its choice

kee ping in view the financial position of the Co-operativeFederat ion :

Provided that before disa ffiliati on. the Co-operative or theSociety shall di scharge its financial liability. if any. to theSoc iety from which it is disaffi liating..'

5. Am('lJdmC'111 in section 9, A CI X of /989.-ln sect ion 9of the principal Act.-

(i) in sub-sec ' ion (2), for the words "h e may registe r theamend mem". the words "h e may regi ster the amend mentwithi n onc month from the date of receipt of theapplicat ion" sha ll be sub sti tuted : and

{ii) in sub -section (4) , for the words "to the Society". the

words "to the Society with in one month from the dateof recei pt of application" shall be substituted,

No. 3-7] 5

6, Amendment of sec/ion 10. Ac/ X of 1989"- ln section 10of the princ ipal Act. after sub-section (2 ). the full stop sha ll be

substituted by colon and thereafter thc following prov iso shall be

added . namely :-

"Provided that nothi ng in this sub-sect ion sha ll apply to aCo -operative Cred it Structure Society and the decision of Genera lBody of such Society with regard to amend ment o f bye-laws shall

be fina I : ' ,

7. Amendment of sec/ion ll . Act X of 1989.-ln sect ion 11of the pri ncipa l Act. after sub-section (3), the fo llowing sub-sectionshall be added. namely ;-

"(4) No Primary Agricultural Co-operative Credit Societyor its Federat ion or Associat ion (exc ept those which arcpermitted to act as a bank under Bank ing Regulation Act, 1949

(Central Act No. 10 of 1949) shall be registered with the\..-o rds ' bank' or any other derivative of the word ' bank' in

its reg istered name or shall use the same as a part of its

name :

Provided that where any Primary Agricultural Cred it Societyis presently using the word ' bank' or any other de rivative ofthis wo rd. it shall within three mont hs fro m the date of coming

into force of the Ja mmu and Kashm ir Co-operative Soc ietie s(Amendment) Act. 2010 remove the word ' bank' or itsderivative, if jIny. from its name :. ,

Provid ed further that [n the event of failure on the part ofthe Society concerned "to remove such word from its name,

the Reg istrar shall. after affording a reasonab le opportunityof be ing heard to such Society, order the winding up of suchSociety forthwith ." .

6 The J&K GOY!. Gazelle. 2 151April. 20 I011sl VaL. 1932 . [No. 3-7

8. Amendment of section }5. Acl X of /989.-ln sect ion 15of the principal Act . after sub-sect ion (3). the follo wing sub-sectio nshall be added. namely :-

"(4) A Co-operative Cred it Structure Soc iety shall have thefreed om of entry and ex it at any tier without mandatoryrestri ctions o f geogra phical boundaries for its operation :

Provided that freed om sha ll be availed only after theoutstanding amount. jf any, ex ist ing again st its name in thebooks of Federal Co-operative Society luis been liquidated infulL...

9 . Amendment of section 17, ,k l X of 1989.-10 sect ion 17of the principal Act, -

(i) in sub-section ( I l, after clause (c). the follow ing c1auscand 'Explanation' theret o shall be inserted . name ly :-

"(d) a Se lf-help group.

Explanation :---·For purposes of clause (d). a self-helpgroup mean s a homogeneous group ofrural poor comprising of tell to twentymembers, vol untar ily formed to savesmall amou nts out of thei r earn ings andagreed upon to form a corpus or fundto be lent o n loan to the members ofsuch group : ' : and

(ii) after sub-sect ion (7). the followi ng sub-section shall beadd ed, namely, :-

"(8) Notwithstanding anything co ntained in sub-sect ion (1) .any person desirous of making a deposit in PrimaryAgr icultural Credit Society sha ll bccome a member of thatSociety by sub scribing the minimum share capital specified

No.3 ·7] The J& K Go,,!. Gazette. ::?: 1SI April. 20 I011st Vai.. 193::?: . 7-----

in the bye-law s and on admission as such. he shall beentit led to full members hip voting right s..·.

10. Amendment ofsection lSI, Act X of 1989. -ln section 19of the principal Act. after sub-section (2). the foll owin g sub-sectionsshall be added. namely :-

"(3) All depositors shall have the voting right s in the PrimaryAgricu lture Co-o pe rative Society prov ided they have alsosubscribed to at leas t one share.

(4) Where a self-help group is a memb er of a Soc iety. aperson nominated by such self-help group. may vote on itsbehalf. in the affairs of the Society..·.

II . Amendment uf section J9 . ..lei X of 11)81).- - In section 29of the pri nc ipal Act.-

{i ) In sub-sect ion (4). in the first proviso. for the words "sixmonths". the word s "three months and . in circumstancesbeyond its control. six months" shall he subst ituted ;

(ii) sub-section (6) sha ll bc sub stitute d by the followingsub-sections. namely :-

"(6) Where the Govern ment have subscribed to the sharecapita l o f a Co-operative Society or has guaranteed therepayment of the principal and the pay ment of intereston debentures issued for loans raised by a Co-operativeSociety. the Go vernment or any person authorized by itin this behalf shall have the right to nomi nate on theCo mmittee sueh number of persons not exc eeding threeor one-third of the tota l number o f members thereof,whichever is les s. as the Government may determine :

Provided that in case of a Co-operati ve Society other tha na Co-operat ive Credit Stru cture Society. in add ition tomembers so ap pointed two seats shall be reserved formem be rs be longi ng to Sc hedu led Castes and oth erBackward Classes and one seat shall be reserved for

8 ThcJ&K Govt. Gaz.cnc. 2 IstApri l,2010/ IstVa i.. 1932. [No.3·7

women, which shall be filled by the Govenuncnt in suchmanner as may be prescribed :

Provided further that in case of a Co-operative Cred itStructure Society, two scats sha ll be reserved for membersbe longing to Scheduled Castes and other BackwardC lasses and one seat shall be reserved for women, whichsha ll be fi lled by election and \... here a candidate fromany sueh eatcgory is not avai lable, then such seat shallbe filled by election from unreserved candidate s.

(6A) Notwithstanding anything conta ined in sub-section (6),-

(a) there shall be only one nominee of the Go vern ment onthe Co mmittee of an Apex Co-operat ive Bank or a Cen tralCo-operative Bank, if the Go vernment has subsc ribed toits share capital ;

(b ) the re shall be no nominee of the Government on theCo mmittee of a Primary Agricultural Credit Society." .

12. Insertion of sec/ions 29A and 29B in Act X of 1989.­After sect ion 29 of the principal Act. the follo wing sect ions shall beinserted, name ly :-

"29A. Bar to election, nomination and continuance asmember of Commtetecs.c.-No person shall be e lected,nominated or co-opted or allowed to continue as a memberof the Co mmittee of a Co-ope rative Credit Stru cture Society,if he-

(i) is a person who repre sents a Society other than a PrimaryAgricultura l Credit Soc iety on the Co mmittee of a Centra lCo-operat ive Bank or an Apex Co-operative Bank and theSociety he represent s has co mmitted a default towardsthe payments of such bank for a period exceeding ninetyday s ; or

No. 3-7J T he J&K G ovl. Gazette. 21 st April. 20 I011 Sl VaL. 1932. 9

(ii) is a person who com mitted a default towards 'he paymentsto a Primary Agricultural Cred it Society or represents aPr imary Agr icultura l Credit Soc iety on the Co mmi ttee ofa Cen tral Co-operati ve Bank or an Apex Co-opera tiveBank and the Society he represents has committed adefault towards the payments of such bank for a periodexceeding one year. unless the de fault is cleared; or

(iii) is a person. who represents a Society whose commi tteeis supersed ed or has ceased to be a member on thecomm ittee o f his own Society,

29B. Qualification for membership of the C ommit tees.e-.( I) Notwithstanding anything conta ined in this Act . the ChiefExecutive Officer or the members of the Com mitt ce of anApex Co-operative Bank or a Central Co-operative Bank shallfulfill such qu alifications and cri teria as presc ribed by theReserve Bank and arc. for the time bein g. in force and suchperson who. in the opi nion of the Reserve Bank or the NationalBank. does not fulfill the prescribed qua lifications or thecriteria. shall be removed on advice of the Reserve Bank 01

the Natio nal Bank after giving him a reasonable opportunityof being heard.

(2) There shall be nr least such num ber of professionalshaving special knowledge or experience. and in such fieldsas may be prescribed by the Reserve Bank on the Commit teeof an Apex Co-operat ive Bank or a Centra l Co-operative Bar tland in case such number o f e lected directo rs do not. in theopinion of Reserve Bank or the Nat ional Bank. posse ss sudspecial knowledge or experience. and in such field s. aprescribed by the Reserve Bank . the Committee of an Ape :Co-operative Bank or a Centra l Co -operative Bank. as thocase may be. shall co -opt such number o f professionals wit t,full voti ng r ights irres pective of.-

{i) the limit on the number of members of the com mitteunder this Act or rule s framed thereu nder or itbye-laws ; and

10 T he J& K Govr. Ga zcne . ~ Ist Apri l. :!OI0 1 ISI VaL 1932 . (No. 3-7---- --- - - - - --- - - - --

(ii) wh ether such professional is a member of the Soc ietyo r not.

(3) If any pe rso n has been co-opted as a member of theCo mmi ttee und er sub-sect ion (2) who d ocs not. in the opin ionof the Reserve Bank. possess requisite qualificat ion. know ledgeor experience as pre scri bed b) the Reserve Bank. he shall.on bei ng advi sed by the Reserve Bank or the National Bank.be removed fro m the office alter giv ing him a reasonableop port uni ty of being heard ..'.

13. Amendment of section 3fJ. Ael X of / 989.- ln sec tion 30of the principal 1\cl. -

For su b-section (1). the followi ng sub-sections sha ll be substituted.namely ;-

..( I) If in the opnuon of the Government or Regi strar.a Committee or Board . by whatever name call ed. of aCo-o perat ive Soc iety is persistent ly making a default or isnegligent in the performance of dutie s imposed on it by thisAct or the ru les or bye-levvs made the reunde r or hasco mmitted any act which is prej udic ia l 10 the interests o f theSociety or its members. or has failed to co mply with anydi recti on given to it by the Government or the Registrar forthe pur pos e of sec uring proper imp lementatio n of Co-operativeprod uction and other devel opment programme s or thai thereis a failure in con stituting or functio ning of. the Co mmitteeor th e Board. the Go ver nme nt or Reg istra r may. afte r givingthe Committee or the Board. as the case may be. opport unityto stare its object ions. if any. with in 15 day s and afte rcon s ideri ng the objec tions. if received. by an orde r in wri ti ng ~

remove the Co mmittee or the Board an d ap poi nt one or moreAdministrators to manage the affairs of the Soc iety for aperiod not exceed ing two months and the elections shall be

No. 3-71 The J& K Govl. Gazette. 2 1Sf Apri l. 20 lu 'Lst Vai.. 1932 . "held \\ ithin such period for the reconstituti on of the Committeeor the Board. as the case may he :

Provided that the Gove rnment or the Reg istra r may. fo r thereasons to be recorded in writ ing. extend the period ofsuch ap pointment for a further period but in any case suchextens ion shall not exceed six months from the date of suchappo intmen t :

Provided furt her that the supersession o f the Co mmittee ofan Apex Co-operative Bank or a Central Co-operative Banksha ll be don e only ill consu ltation with th e Reserve Bank.

(IA ) Not withstanding anything contained in sub-section ( I) , theCo mmittee of a Primary Agricultu ral Credit Society shall be supersededby the Registrar on ly unde r the follo wing c ircum stances. namely :-

(a) that the Society has incurred losses for three consecutive'years : or

(b) tha t serious financia l irregularities or frauds have beenidentified : or

(c) that there are j udicia l direct ives to th is effect ; or

(d) there is perpetual lack of quo rum for th ree consecutivemeet ings

Provided that members of the Committee of a Primal)'Agricult ural Credit Soc iety which has been supersededsha ll be disqualifi ed to contest the e lect ion to anyCom mittee for a period of at leas t three consec utive yearsfrom the date of supersess ion:".

14. Insert ion of section 32..1 in Act X of /9X9.-Aftersec tion 32 of the princ ipal Act. the follow ing section shall be inserted ,namely :-

" 32A . A uto no my in all fi na ncia l and in te r na ladministrative matters.- Subj ect to the prov isions of thi s

12 The J&K Govt. Gazette. 21st April. 20 1011st Va l.. 1932. [No.3·7

Act . rules or bye-laws made thereunder or any oth er Iaw forthe time being in force. a Co-operative Credi t Struct ureSociety shall have autonomy in all financial and internaladmi nistrat ive matters including the following areas :-

(a) interest ratcs on deposits and loans: provi ded that in caseof the State Co-operat ive Bank and a Central Co-opera tiveBan k, the interest rates sha ll be in conformity with theguidel ines issued by the Reserve Ban k :

(b) borrowing and investment s :

(c) loan policies and individual loan decisions

(d) person nel policy. staffi ng, recruitment . posti ng. andcompensat ion to stafT :

(e) interna l control systems. appoi ntment of auditors andcompensat ion for the audit:' .

15. Amendm ent of section 43 , Act X of / 989.- ln sectio n 43of the principal Act , after sub-section (2). the following sub-sectionshall be added. namely :-

" (3) Notwithstand ing any thin g contained in sub-sectio n (I). theshare capital cont ribution by the Governm ent in case o f a Co­operative Credit Struct ure Society sha ll not exceed twenty th eper cent of the share ca pital and the Government or suchSociety may reduce the Go vernments subscription further atits choice." ,

16, Amendment of section 59, 04 ,,1 .X of /989.- ln section59 of the princ ipal Act. after sub-section (3). the following sub-sectionsshall be ad ded. namely :-

"(4 ) Notw ithstand ing anyth ing con ta ined III sub-sections (2)an d (3). there shall be no compuls ion on a Co-opera tive Cred it

No.3-7J T he J&K Govt. Gazette. 21sl April , 20 I0/ 1sl Vai.• 1932. 13

Structure Soc iety for contribut ion to any fund other than thatrequired for improving its net worth or its owned funds.

(5 ) Notwithst and ing anything conta ined in sub-section (2), aPrimary Agricu ltural Credi t Society sha ll pay a dividen d toits members in accordance with the guidel ines laid down bythe Registrar in con sultation with the Nat iona l Bank .".

17 . Amendment of section 60. Act X of / 989.- ln section60 of the principal Act.-

(i) in clau se (d). for the ' vords. " person carryi ng on thebusiness of banking. approved for this purpose by theRegistrar". the words " Reserve Bank regulated financi alinst itution of its cho ice" shall be subst ituted;

(ii) in clause (e ). the full stop at the end shall be subst itutedby co lon and thereafte r the follow ing proviso shall beinserted. namely :

" Provided that the provi sio ns of cla use (e) sha ll not applyto a Co-opera tive Cred it Struct ure Soc iety." ,

18. Amendment of section 6 / , Acl X of / 98 9.- ln section 6 1of the princ ipal Act.-

(i) in sub-sect ion (I). for the proviso thereto the foll ow ingprovisios sha ll be substitut ed. namely :-

" Provided that a Co-operative Soc iety may make loansto other Co-operative Soc iet ies :

Provided furthe r that the Co-operative Credit StructureSoci ety may take appropriate decis ion rega rding its loanpol icies incl ud ing individual loan dec ision keeping in viewthe interests of the Soc iety and its members.";

14 The J&K Go\Ct. Gazelle, 21srApril. 2010 11 Sl VaL, 1932 . [No.3-7

(ii) in su b-section (2). the ful l sto p at the end shall besubst ituted by colon and th erea fte r the fo llo wing prov isoshall be inserted, namely :

" Provided a person \\ ho has become a member of aPrimary Agricultural Credit Society, in term s o f sub-sec tion(8 ) of sect ion 17 of thi s Act sha ll be eligible for loanin th e same manner as o the r mem bers of suc hSoc iety: ' ;

(iii) after sub-sect ion (2 ). the fo llow ing sub-section shall beinserted, namely :-

'"(3) A Primary Agricultu ral Cred it Soc iety shall ab ide byth e pruden tia l norms incl udi ng. capita l to risk. weighted asse tsratio prescribed by the Registrar in con sulta tio n with theNationa l Bank.".

19. Amendment of section 61. / k f X (4' /989.-The ex istmgsec tio n 62 of the princ ipal Act. sha ll be numbered as su b-section (1)thereof and after sub-section (I) as so numbered. the follow ing sub­sectio n sha ll be add ed, namely :-

"(2) Notwithstanding anything co ntai ned in sub-sect ion ( I), aCo-operat ive Credit Structu re Soci ety shall have freedom toraise loan from any bank or Reserve Ban k. regu lated finan cialinstit ution. refinance from Nationa l Bank. or any other refinanceagenc ies dir ect ly or th ro ugh any Rese rve Bunk regulatedfina nc ial institution of its choice in ad dition to the loan ra isedfrom the Soc iety to which it is affi liated :'.

20. Amendment uf section 63. Act X of / 98 9.-ln section63 of the principal Act, full stop at the e nd shall be substitutedby co lon and therea fte r the following prov iso sha ll be inse rted ,name ly :-

"Provided that in case of a Co-operative Credit StructureSoci ety, the transactions with persons other than membe rsshall be as decid ed by its com mittee.".

•

No.3-7J The J&K GOY!. Ga zelte. 21 st April, 201011 st VaL, 1932 . 15

2 1. Amendment of sec/ion 6./. Act X of 1989.-ln section64 of the pri ncipal Act,-

(i) after sub-sect ion ( 1). the following sub -sections shall beinserted, namely

"( 11\) A Primary Agricultural Credit Society shall get itsacco unts audited at least once in each year by theRegistrar or by a person authorised by him, by generalor specia l order in writing ill this behalf, or a CharteredAccountant appo inted by its Committee.

(I B) Notwithstand ing anyth ing contained in sub-section( I), the accounts of an Apex Co-operative Bank or aCentral Co-operative Bank shall be audited and certifiedby Chartered Accountants appointed by its Committeefrom the pane l approved by the Nat iona l Ban k.

( IC) The Registrar shall get conducted a special audit ofan Apex Co-operative Blink or a Central Co -opera tiveBank on the request of the Rese rve Bank in the manncrand form stipulated by the Reserve Bank and shall endorsea copy of the report of such spec ial audit to the ReserveBank and the Nationa l Bank within the time stipulated bythe Reserve Bank:' ;

(ii) ill sub-section (2), fo r the words "under sub-section ( I)'",the words " under sub -sections ( I), (IA), (18), or ( lC)"sha ll be subst ituted ;

(iii) in sub -sec tion (3), for the words "the Reg istrar or theauthorised person" , the words "the Reg istra r or theau t ho r is ed pe rson o r t he Char tered Ac co unta ntappointed under sub-s ections (I A), (I B) or (I C)" shall besubstit uted ;

(iv) in sub -section (4), for the words "the Registrar or thepers on authorised by him", the words "the Registrar or

16 The J& K Go\'t . Gaze lle . 2 1sl April, 20 I0/ ISf Vai., 1932. (No. 3-7

th e person authorised by him or the Chartered Accoun tantappointed under sub-sections (I A). ( IB) or ( IC)" shall besubst ituted ; and

(v) in th e Explanation thereund er. the full stop at the end shallbe substituted by colon and thereafter the following provi soshall be inserted. namely :

" Provided th at a Co-operat ive Cred it Structure Soc ietyshall be free to dec ide the compensation for audit.recurring aud it or re-audit." .

22. Insertion of section 73A. Act X of / 9X9.- After section73. the fo llowing section sha ll be inserted, nam: ly :-

"73A Registrar's obliga tlo nso--f 1) T he Regi strar shallissue directions to ensure that Reserv e Ban k's regulatoryprescript ions in case of an Apc x Co-o perative Bank or aCentra l Co-o perative Bank arc imple mented within one monthfrom the date of receipt of the ad vise from the Reserve Bank.

(2 ) The Registrar shall. on being advised by the Reserve Bankfor w inding up or supersession. ensure that the liqu idator orthe Adm inistrator. as the case may be. is appoi nted withi none month from the date of receipt of the advic e from theRese rve Bank .

(3) If. in the opinion of the Reserv e Bank or the NationalBank. the Chief Exec ut ive Officer of an Ape x Co-operativeBank or a Central Co-operative Bank doe s not fu lfi ll e ligibilitycri te ria prescribed by the Reserve Bank . the Registrar shalldirect compliance of the orders o f the Reserve Bank or theNati onal Bank. as the case may be. within two months ofbei ng so advised by the Reserve Bank or the Nat ional Bank.

(4) If. in the opin ion of the Reserve Bank or the Natio nalBank. a person has bee n co-o pted as a mem ber of theCo mmitt ee under sub-section (2) of sect ion 298 without

No. 3-7] T he J&K Govt. Gazette . 21 st April . 20 1011st Vai.• 1932. 17

hav ing the requisite spec ial knowledge or experience in suchfields as may be prescribed by the Reserve Bank. theRegistrar sha ll. on being advi sed by the Reserve Bank or theNational Bank. direct comp liance o f the orders of th e ReserveDank or the National Bank. as the case may be. within twomonths of being so adv ised by the Reserve Bank or theNationa l Bank," ,

23 . Amendment ofsection 176. Ac:t X (~f 19H9.- ln sect ion 176of the principal Act. in sub-sect ion (2),-

(i} in clause (xiv). after word s "Co -operative societi es", thewords "o ther than Co -operative Cred it Structu re Soc ieties"sha ll be inserted ; and

(ii) in cla use (xv) afte r words "Co-operat ive soc iet ies". thewords. "other than Co-operat ive Credit Structure Soc ieties"shall be inserted.

•(Sd.) MOHAMMAD ASHRAF.

Addit ional Secreta ry to Government.Law Department.