Section 63A of The Multi-State Co-operative Societies Act, 2002
1[63A. Establishment of Co-operative Rehabilitation, Reconstruction and Development Fund. -- (1) The Central Government shall establish a Fund, to be called the Co-operative Rehabilitation, Reconstruction and Development Fund for revival of sick multi-State co-operative societies as referred to in section 63B and for development purposes in such manner as may be determined by it and there shall be credited to such Fund annually by multi-State co-operative societies which are in profit for the preceding three financial years one crore rupees or one per cent. of the net profits of such multi-State cooperative society, whichever is less.
- (2)The Central Government shall, by notification, constitute a Committee, consisting of such members as it may deem fit, to administer the Fund, and maintain separate accounts and other relevant records in relation to the Fund in such form as may be specified by the Central Government in consultation with the Comptroller and Auditor-General of India.
- (3)The Committee shall spend the money out of the Fund for carrying out the objects for which such Fund has been established.]
Summary
- The Central Government must create a national pool of money called the Co-operative Rehabilitation, Reconstruction and Development Fund.
- This fund is used to revive struggling or sick co-operative societies and to support development projects.
- Profitable co-operatives must contribute to this fund every year if they have made a profit in the last three financial years.
- The annual contribution is either one crore rupees, which is ten million rupees, or one per cent of the net profits, whichever is less.
- A special Committee set up by the Central Government runs this fund and maintains its accounts in consultation with the Comptroller and Auditor-General of India.
Practical examples
FAQ
1. What is the main purpose of the Co-operative Rehabilitation, Reconstruction and Development Fund under Section 63A of the Multi-State Co-operative Societies Act, 2002?
The main purpose of this fund established under Section 63A of the Multi-State Co-operative Societies Act, 2002 is to help revive sick multi-state co-operative societies and to fund other co-operative development projects.
2. How much must a profitable society contribute to the fund under Section 63A of the Multi-State Co-operative Societies Act, 2002?
Under Section 63A of the Multi-State Co-operative Societies Act, 2002, a society that has made a profit for the previous three financial years must contribute either one crore rupees or one per cent of its net profits, whichever amount is less.
3. Who administers the development and rehabilitation fund under Section 63A of the Multi-State Co-operative Societies Act, 2002?
A special Committee appointed by the Central Government is responsible for managing the fund, spending the money for its legal purposes, and keeping records under Section 63A of the Multi-State Co-operative Societies Act, 2002.
4. Who does the Central Government consult with to keep accounts for the fund under Section 63A of the Multi-State Co-operative Societies Act, 2002?
The Central Government must consult with the Comptroller and Auditor-General of India, who is the main government auditor, to set the form for maintaining the accounts of the fund under Section 63A of the Multi-State Co-operative Societies Act, 2002.
Test yourself
Q1.Under Section 63A of the Multi-State Co-operative Societies Act, 2002, which societies are required to make an annual contribution to the established Fund?
Q2.Under Section 63A of the Multi-State Co-operative Societies Act, 2002, what is the maximum annual contribution a profitable society must make to the Fund?
Q3.Under Section 63A of the Multi-State Co-operative Societies Act, 2002, who must the Central Government consult to specify how the accounts of the Fund are maintained?
Q4.Under Section 63A of the Multi-State Co-operative Societies Act, 2002, what body is formed by the Central Government to run the Fund?