धारा 123 · Constitution or recognition of co-operative federal authority to supervise working of cooperative societies

(1) The State Government may constitute or recognize one or more co-operative federal authorities, in such manner as may be prescribed and subject to such conditions as the State Government may impose, for the supervision of co-operative societies or a class of co-operative societies may grant loans or subsidies to such authority or authorities in the manner prescribed.

(2) The State Government may, by general or special order, require a co-operative society or a class of co-operative societies to make contribution of such a sum every year as may be fixed by the Registrar towards the full or partial recoupment of expenditure incurred or likely to be incurred in respect of supervision of societies by the feral authority or authorities mentioned in sub-section (1).

(3) A co-operative society to which sub-section (2) is applicable shall pay to such authority or authorities within such time as may be fixed by the Registrar, the contribution as may be fixed under that subsection, and if it fails to make such payment within such time, the amount shall be recovered as arrears of land revenue on a requisition made by the authority or authorities through the Registrar to the Collector if the district in which the registered office of the defaulting cooperative society is situate.

(4) Any officer or officers of the federal authority or authorities mentioned in sub-section (1) may be authorized by the Registrar by general or special order in writing to conduct inspection of a cooperative society or class of co-operative societies, the supervision of which has been entrusted to the federal authority or authorities under sub-section (1), provided that such officer or officers shall work under the general guidance, superintendence and control of the Registrar in exercise of such powers and report the result of inspection to the Registrar.