Hyderabad: Officials say that a new law along the lines of the one in Tamil Nadu will strengthen the Registration Department which will then be able to monitor societies registered as non-profit organisations. An Act was proposed by the Department of Stamps and Registration a few years ago, but it was opposed by the public.
The proposed Act imposes a fine for delay in filing the annual list or change of address or other details. It enables the government to declare a society defunct if it fails to submit these details for two consecutive years after getting a notice, with an option to appeal before the registrar general.
It also makes it mandatory for all societies to conduct a self audit if their annual turnover is below Rs 5 lakhs, by an auditing panel for sums up to Rs 50 lakhs and by a chartered accountant if it is above Rs 50 lakh. The audit report should be placed before the committee and submitted to the registrar, who will check the accounts.
Under the proposed Act, the registrar can probe the affairs of any society of his own accord or if an application is made by a majority of its members. If it is found to have gone against any provision of the Act or has become insolvent or is involved in fraud or has violated its bye-laws or is found engaging in unlawful activities, the society registration can be cancelled.
The registrar can also appoint a liquidator to wind up a society if it does not cease functioning after cancellation. The registrar can also take up suo moto the case of any society which dissolves itself.
