All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts by the auditor appointed under Section 81 shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the society.
All other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve Fund or share capital of the society :

Provided that—
(1) no bad debts or losses shall be written off without the sanction of the general body;

(2) before any such bad debts or losses are so written off, the society, if it is affiliated and indebted to a Central Bank, shall first obtain the approval of that bank in writing and also the approval of the Registrar. If the society is affiliated but not indebted to the Central Bank and in all other cases it shall obtain the approval of the Registrar in writing. If the society itself is a Central Bank, approval of the State Co-operative Bank and the approval of the Registrar shall first be obtained :

Provided that in case of societies classified as A or B at the time of last audit, no such permission need be taken if the bad debts are to be written off against the Bad Debt Fund specially created for the purpose :

Provided further that the Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out -of future profits as he deems fit.

(1) A society shall calculate the net profits by deducting the following from the gross profits for the year -

(2) In addition to the sums referred to in sub-rule (1) of this rule, the following sums shall be deducted by a society from its profits :-

(3) The net profit thus arrived at together with the amount of profits brought forward from the previous year shall be available for appropriation.]

(1) The other purposes for which a society may appropriate its profits shall be education and enlightenment of the members of the society as also any co-operative or charitable purpose including relief to the poor, education, medical relief and advancement of any other general public utility, provided that the expenditure on such items does not exceed 10 per cent of the net profits.

[(2) The net profits calculated in accordance with the provisions of rule shall be appropriated for the creation of —

In addition to the sums referred to in sub-section (i) of Section 65, the following sums shall be deducted by a society from its profits before arriving at its profit for the purposes of sub-section (2) of Section 65;

(1) A society may create out of its net profits a fund to be called the Bonus Equalization Fund [for payment of bonus to persons other than its paid employees] [who are not its members].

(2) Except otherwise specifically authorised by the Registrar, [the fund] so created shall be utilised in accordance with the provisions of the bye-laws of the society only [for payment of such bonus].

[(3) A society may create the Dividend Equalization Fund and credit to it a sum need exceeding 2 percent of the paid-up share capital in any year, until the total amount in such Fund amounts to 9 percent of the paid-up share capital. The society may draw upon this fund in any year only when it is unable to maintain a uniform rate of dividend it has been paying during the last preceding five years or more.]

(4) No society shall declare a dividend at a rate exceeding that recommended by its committee.

The rates at which the classes of societies specified under column (2) of the Table below shall contribute annually under Section 68 towards the education fund of the State Federal Society, which may be notified in this behalf by the State Government, shall be those which are respectively specified against them in column (3) of the said Table

Sr.No	Class of Society	Kate of contribution per year per society
1	2	3
1	Maharashtra State Co-operative Bank	2 paise per Rs. 100 of working capital subject to a maximum of Rs. 5,00,000.
2	Maharashtra State Co-operative Agricultural and Rural Development Bank.	Rs. 1/10 per cent of working capital subject to a maximum of Rs. 1,00,000.
3	Maharashtra State Co-operative Marketing Federation.	Rs. 1/10 per cent of working capital subject to a maximum of Rs. 150,000.
4	Maharashtra State Co-operative Housing Finance Corporation.	Rs. 1/10 per cent of working capital subject to a maximum of Rs. 1,00,000.
5	Maharashtra State Co-operative Consumers' Societies Federation.	2 paise per Rs. 100 of working capital subject to a maximum of Rs. 2,00,000.
6	Maharashtra State Co-operative Sugar Factories Federation.	Rs. 5,000
7	Maharashtra State Co-operative Fisheries Federation.	Rs. 1,000
8	Maharashtra State Co-operative Cotton Grower Marketing Federation.	Rs. 1,50,000
9	Maharashtra State Co-operative Diaries Societies Federation.	Rs. 5,000
10	Maharashtra Co-operative	Rs. 5,000
11	Spinning Mills Federation. Maharashtra State Co-operative Power-looms Societies Federation.	Rs. 2,500
12	Maharashtra State Co-operative Textile Corporation.	Rs. 1,000
13	Maharashtra State Co-operative Handloom Societies Federation.	Rs. 2,500
14	Maharashtra State Agricultural Produce Market Committees Federation.	Rs. 1,000
15	Maharashtra State Co-operative Cotton Growers Processing Societies Federation.	Rs. 2,500
16	Maharashtra State Co-operative Tribal Development Corporation.	Rs. 1,000
17	Maharashtra State Co-operative Tribal Development Corporation	Rs. 1,000
18	Maharashtra State Co-operative Labour Societies Federation.	Rs. 1,000
19	Maharashtra State Co-operative Banks Association.	Rs. 5,000
20	Maharashtra State Co-operative Oil Seed Processing Federation.	Rs. 5,000
21	Maharashtra State Sugar Industries Development Cooperative Societies.	Rs. 1,000
22	Maharashtra State Co-operative Engineering Societies.	Rs. 1,000
23	Maharashtra State Co-operative Jangle Kamgar Federation.	Rs. 1,000
24	Co-operative Sugar Factories.	20 paise per ton of the last year Sugar Cane crushed, subject to maximum of Rs. 75,000.
25	District Central Co-operative Banks	(a) District Central Co-operative Banks of Raigad. Ratnagiri, Sindhudurg, Chandanpur and Gadchiroli Rs.10,000.
		(b) The revitalised District Co-operative Banks in the State Rs. 15,000.
		c) Other District Central Co-operative Banks in the State Rs. 30,000.
26	Sholapur District Industrial Cooperative Banks.	Rs. 15,000
27	Urban Co-operative Banks.	(a) Working capital upto Rs. 5 crores Rs. 5,000.
		(b) Working capital of Rs, 5 crores to Rs. 50 crores of Rs. 10,000.
		(c) Working capital above Rs. 50 crores Rs. 30,000.
28	Urban Co-operative Credit Societies.	1/10 per cent of Working Capital, subject to minimum rupees 100 and maximum of Rs. 5.000.
29	Salary Earners. Factory Workers, Mills Workers. Thrift Fund and Credit Societies.	1/10 per cent of Working Capital, subject to maximum Rs. 1,000.
30	District Agro Industrial Serva Seva Co-operative Societies and Purchases and Sale Societies having jurisdiction in one or more Districts.	1/10 per cent of Working Capital,subject to maximum of Rs. 20,000.
31	Primary Marketing Societies.	1/10 per cent of Working Capital,subject to maximum of Rs. 2,000.
32	Whole-sale Co-operative Consumer Stores.	1/10 per cent of Working Capital,subject to maximum of Rupees 20,000.
33	Primary Co-operative Consumers Stores.	2 paise per Rs. 100 of working capital, subject to minimum of Rs.100 and a maximum of Rs.2,00,000.
34	Co-operative Spinning Mills.	(a) Which have not gone in production of Rs. 1,000.
		(b) Which have gone in production of Rs. 10,000.
36	Primary Seva Sahakari Sanstha.	(A) Rs. 10 in respect of those which have suffered loss during the previous cooperative year.
		(B) 1/10 per cent of the Working capital in respect of whose which have earned profit during the previous year subject to maximum of Rs. 1.000.
37	Milk Co-operative Unions Taluka and District.	(a) Having collection of 3 lacs liters Milk of previous year Rs. 500.
		(b) Having collection of 3 to 4 lacs litters Milk of previous year Rs. 1,000.
		(c) Having collection of 4 to 5 lacs liters Rs. 1.500.
		(d) Above 5 lacs liters Rs. 2,000.
38	Primary Co-operative Dairy Societies.	Rs. 100
39	Co-operative Poultry Societies Federation.	Rs. 100
40	Co-operative Lift Irrigation Societies.	Rs. 100
41	Agricultural Processing Cooperative Societies.	Rs. 100
42	Grain Banks.	Rs. 100
43	Piggery and Live Stock Cooperative Societies (including breeding).	Rs. 100
44	Sugarcane Supply Co-operative Societies.	Rs. 500
45	Industrial Co-operative Estate.	Rs. 100
46	Labour Contract Co-operative Societies.	Rs. 100
47	Forest Labourers Co-operative Societies.	Rs. 100
48	Agricultural Non-Credit Cooperative Societies.	Rs. 100
49	Non-Agricultural Non-Credit Societies.	Rs. 100
50	Co-operative Farming Societies.	Rs. 100
51	Co-operative Fisheries.	Rs. 100
52	Primary Co-operative Poultry	Rs. 100
53	Vidarbha Premier Co-operative Housing Society.	Rs. 5000
54	Co-operative Housing Society.	(a) Having jurisdiction of Corporation, Nagarpalika and Cantonment Board, per Member Rs. 3.
		(b) Having jurisdiction of Gram Panchayat Per Member Rs. 2.
55	Vidarbha Co-operative Marketing Societies.	1/10 of the Working Capital subject to maximum of Rs. 20,000
56	Co-operative Distillery Societies.	Rs.5000
57	Mula Pravara Co-operative Electrical Societies Limited Shrirampur District Ahmednagar.	Rs.1000.
58	Other Societies.	(a) Village and Taluka jurisdiction ....   Rs. 100
		(b) District jurisdiction ...   Rs. 500
		(c) State jurisdiction .... Rs. 1,000.]

The rates at which the class or classes of societies or other body corporate specified under column 2 of the Table below shall contribute annually under sub-section (4) of Section 69-A towards the Co-operative State

(1) The Apex society which has been notified by the State Government under subsection (3) of Section 69-A shall open an account in the name of the "Co-operative State Cadre Employment Fund" established by it in the Maharashtra State Co-operative Bank Limited, Bombay and also in every District Central Co-operative Bank, excluding the Bombay District Central Co-operative Bank

(2) The amount of annual contribution payable under Rule 53-A by the Maharashtra State Co-operative Bank Limited, Bombay, and the Maharashtra State Co-operative Development Bank Limited, Bombay for every Co-operative year shall be paid by them before the 30th day of September of the next following co-operative year by crediting the amount of contribution into the "Co-operative State Cadre Employment Fund" account opened under sub-rule (1) in the Maharashtra State Cooperative Bank Limited, Bombay.

(3) The auditor of—

(4) The Director of Sugar, Maharashtra State, shall certify the amount of annual contribution payable under Rule 53-A by every sugar factory (other than a cooperative sugar factory) and send the certificate tc the relevant Central Society. The certificate in respect of every co-operative year shall be sent before 15th day of August of the next following co-operative year.

(5) Within fifteen days from the date of receipt of a certificate sent under subrule (3) or (4), the State Level Caderisation Committee or, as the case may be, the relevant Central Society, shall serve a notice of demand for payment of the contribution mentioned in the certificate on the Maharashtra State Co-operative Marketing Federation or, as the case may be, a society or a sugar factory (other than a co-operative sugar factory by which it is payable.

(6) On receipt of the notice of demand under sub-rule (5) the Maharashtra State Co-operative Marketing Federation, every society and every sugar factory (other than a co-operative sugar factory) shall pay the amount of contribution payable by them for any co-operative year before the 30^th day of September of the next following co-operative year. Such contribution shall, in the case of the Maharashtra State Co-operative Marketing Federation Limited, Bombay, be paid into the "Co-operative State Cadre Employment Fund" account in the Maharashtra State Co-operative Bank Limited Bombay and in other cases, into the "Co-operative State Cadre Employment Fund" account in the District Central Co-operative Bank in the District in which the society making the contribution operates or the sugar factory (other than co-operative sugar factory) making such contribution is situated

(7) Before the 15th day of August next following the end of each co-operative year, every Primary Agricultural Credit Society shall furnish to the relevant Central Society such information as may be necessary for it to assess the amount of contribution payable for that year by the Primary Agricultural Credit Society under Rule 53-A. On receipt of such information, the relevant Central society shall scrutinise it, determine the amount of contribution payable by the Primary Agricultural Credit Society and shall, before the 15th day of September next following the end of the said co-operative year, serve a notice of demand on the Primary Agricultural Credit Society for payment of the amount of contribution to be determined. The relevant Central society shall also, before that date, furnish to the District Central Co-operative Bank of the District in which the Primary Agricultural Credit Societies furnishing the information operate, a statement indicating the name of each Primary Agricultural Credit Society, the rate of annual contribution payable by it under rule 53-A, the amount of contribution determined and the amount of arrears of contribution if any, which has remained to be paid by each Primary Agricultural Credit Society. On the service of a notice of demand, the Primary Agricultural Credit Society shall, before the 31st day of December next following the end of the aforementioned co-operative year, pay the amount of contribution payable by it for that year into the "Co-operative State Cadre Employment Fund" account in the District Central Co-operative Bank in the District in which such society operates.

(8) Where any society (including the Primary Agricultural Credit Society and the Co-ope- ative Sugar Factory) which has received any loan from any District Central Cooperative Bank or the Maharashtra State Co-operative Bank pays to that Bank any amount towards payment of interest on such loan, or repayment of such loan, or where any such amount is received by the District Central Co-operative Bank or the Maharashtra State Co-operative Bank on behalf of any such society or sugar factory from any other agency, and the District Central Co-operative Bank or the Maharashtra State Co-operative Bank is satisfied after consulting the relevant Central Society that there are any arrears of annual contributions payable by such society or sugar factory as per demand notice served on it, then the District Central Co-operative Bank or the Maharashtra State Co-operative Bank, as the case may be, shall in accordance with the procedure laid down from time to time, by the State Level Caderisation Committee and after obtaining the consent of such society or sugar factory to do so, first credit to the "Co-operative State Cadre Employment Fund", such amount as may be necessary to recover the arrears and adjust the rem lining balance, if any, towards payment of interest on such loan or as the case may be, repayment on such loan. Whenever the District Central Cooperative Bank or the Maharashtra State Co-operative Bank so credits any amount to the said Fund, it shall send advice to such credit to the society or as the case may be, Co-operative Sugar Factory and also the relevant Central Society.

(9) Notwithstanding anything contained in sub-rules (2), (3). (4), (6) and (7)—

(10) The relevant Central Society shall maintain books of accounts of the annual contributions due from each society which operates in the area of its operation and each sugar factory situated in that area. The State Level Caderisation Committee shall maintain books of accounts of the annual contributions due from the Maharashtra State Co-operative Bank Limited (incorporating the Vidarbha Cooperative Bank Limited), Bombay the Maharashtra State Co-operative Marketing Federation Limited, Bombay and the Maharashtra State Co-operative Land Development Bank Limited, Bombay. Every such book of accounts shall contain the following particulars, namely—

(11) A periodical statement of accounts of the moneys credited into the "Cooperative State Cadre Employment Fund" accounts with each District Central Cooperative Bank shall be sent by that Bank to the relevant Central Society at such intervals as may be determined by the State Level Caderisation Committee. The statement so received shall be forwarded by the relevant Central Society to the State Level Caderisation Committee after due scrutiny.

(12) Where any society or sugar factory fails to pay the annual contribution as provided in the preceding sub-rules, the State Level Caderisation Committee, in the case of the Maharashtra State Co-operative Bank Limited (incorporating the Vidarbha Co-operative Bank Limited), Bombay the Maharashtra State Co-operative Marketing Federation Limited, Bombay and the Maharashtra State Co-operative Land Development Bank Limited, Bombay and the relevant Central Society in the case of other societies and sugar factories, shall communicate the name of the defaulting society or sugar factory to the Registrar for taking action under sub-section (5) of Section 69-A .

Explanation: —

For the purpose of this rule—

(1) A society shall, in addition to the modes specified in clauses (a) to (d) of Section 70, invest or deposit its reserve fund in any one or more of the following permitted modes namely—

(2) No society whose, reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund except with the sanction of the Registrar previously obtained in writing.

(3) In the case of a society constituted with the object of co-operative housing on a co-partnership basis, the reserve fund may be utilised for expenditure on the maintenance, repair, and renewal of buildings of society.

(4) In the case of a processing society the reserve fund may be utilised in the acquisition, purchase or construction of lands, buildings and machinery.

(1) A society may invest any of its funds (other than the reserve fund) in any of the modes specified in Section 70 when such funds are not utilised for the business of the society. Explanation:-
For the purpose of this sub-rule, "business of society" shall include any investment made by the society in immovable property with the prior sanction of the Registrar in the process of recovery of the society's normal dues or for the purpose of construction of building or buildings for its own use.

(2) The Registrar may, in the case of any society or class of societies, specify by a special or general order the maximum amounts to be invested in any class or classes of securities.

(3) Every society which has invested an amount not less than 10 per cent of its working capital in securities shall be required to constitute an investment fluctuation fund. The Registrar may direct that a specified per cent of the net profits every year shall be credited to the investment fluctuation fund until, in his opinion, the amount of the funds is adequate to cover anticipated losses arising out of the disposal of securities.

(4) Proportion of paid-up share capital of the investing society or a class of society, shall be determined by the Registrar by special or general order, from time to time, for investment in the shares or security bonds or debentures issued by any other society. While determining such proportion, the Registrar may impose such conditions as he may deem fit.

(5) When any society or societies have been permitted to enter into collaboration as provided under sub-section (I) of Section 20A, if it is necessary to invest the funds of the society or societies in such collaboration, the Registrar may, in addition to any general or special order of the State Government as specified in clause (e) of Section 70 , impose such additional conditions as may be necessary in the interest of the society :

Provided that, the Registrar may for ensuring the safety of the funds of the society or societies invested in such collaboration for beneficial utilisation of the funds in furtherance of the objects may be regulated to the extent and manner of such investment from time to time.]

A society which has established a provident fund for its employees under Section 71 shall, with the previous approval of the Registrar, frame regulations for the maintenance and utilisation of the provident fund for its employees. Among other matters, such regulations shall provide for the following—