The Maharashtra Cooperative Societies Act 1960

1 Chapter: XI - AGRICULTURE AND RURAL DEVELOPMENT BANKS

Section 111 to 112C

Footnote:
1. These words were substituted for the words "a Land Development Banks" by Mah. 10 of 1988, s. 19.

Section 111 - Application of Chapter XI of 1 [Agriculture and Rural Development Banks]

This Chapter shall apply to--
(a) any co-operative bank or banks advancing loans other than short term loans, to or through the 2 [Agriculture and Rural Development Bank], for the purposes herein enumerated (hereinafter referred to as"the 2 [Agriculture and Rural Development Bank]"), namely:--
(i) agricultural or rural development;
(ii) purchase of, or acquisition of title to,agricultural lands by tenants, occupants and assignees under any law for the time being in force;
(iii) liquidation of Governmental, Institutional and other secured debts to agriculturists;
3 (iv) acquisition,construction, rebuilding or repairing of dwelling houses in rural area;

(b) any other society permitted by the Registrar under section 142 to function as a 2 [Agriculture and Rural Development Bank.]
Explanation.--For the purposes of this section,--
(I)the expression"short term loan" means a loan for a duration of less than 18 months; and

(II) the expression "agricultural or rural development" means any work, construction or activity pertaining to agricultural and rural development which includes the following, that is to say:--
(i) construction and repairs of wells (including tube wells), tanks and other works for storage, supply or distribution of water for the purpose of agriculture, or for the consumption of human beings and cattle employed in agriculture,
(ii) making agricultural lands fit for cultivation,improvements of land including development of sources of irrigation,
(iii) renewal or reconstruction of any of the fore going works, or alterations therein or additions there to.
(iv)preparation of lands for irrigation including command area development.
(v) drainage to, and reclamation from, rivers or other waters, or protection from floods or erosion of other damage by water, of land,
(vi) bunding and similar improvements.
(vii) reclamation, clearance and enclosure orpermanent improvement of land for agricultural purposes.
(viii) horticulture,
(ix) purchase of tools, implements, machinery including oil engines, pumping sets, electric motors for any of the purposes mentioned here in,
(x) purchase of tractors or power tillers or any other agricultural machinery,
(xi) increase in productive capacity of agricultural ands,
(xii) construction, rebuilding or repairing of farmhouses, cattle-sheds and sheds for processing or repairing agriculture or cottage or village industrial products,
(xiii) purchase of machinery for processing of agricultural produce,
(xiv)purchase of lands for consolidation of holding under the relevant law for the time being In force,
(xv)animal husbandry, and dairy farming such as purchase of milch cattle, rearing of cross-breed female calves, cattle breeding, sheep and goat rearing, piggery,poultry farming and purchase of bullocks,
(xvi)plantation including tree crops,
(xvii) forestry,
(xviii) pisciculture including development of inland and marine fisheries, catching of fish and all activities connected there with or incidental thereto,
(xix) sericulture or apiculture,
(xx) marketing, storage including rural warehouses,godowns and cold storage and transport of agriculture, cottage and industrial products, acquisition of implements and machineries in connection with such activities including animal-driven carts.
(xxi) market yards for agricultural produce,
(xxii) bio-gas plants,
(xxiii) working capital or production credit to borrowers or investment credit,
(xxiv)setting up of cottage and village industries,
(xxv)purchase of shares in co-operative sugar factories or in any processing industry of agriculture produce.
(xxvi)social forestry,
(xxvii)such other purposes as the State Government may, from time to time, by notification in the Official Gazette, declare to be agricultural or rural development purposes, or
(xviii) all activities incidental to, or ancillary to, the above mentioned purposes.

Footnote:
1. This section was substituted for the original by Mah. 20 of 1986, s. 55.
2. This section was substituted for the original by Mah. 20 of 1986, s. 55.
3. Sub-clause (iv) was added by Mah. 5 of 1990, s. 3.

1 Section 112 - State and other Agriculture and Rural Development Banks

2 (1) There shall be a 3 [State Agriculture and Rural Development Bank], for the State of Maharashtra. If considered necessary by the State Government in the public interest or in the interest of the co-operative movement, there may be one or more 4 Primary Agriculture and Rural Development Banks; but nothing in this sub -section shall be taken to require the establishment or continuance of any 4 Primary Agricultural and Rural Development Banks).

(2) A reference to Land Mortgage Bank 5 or to a Land Development Bank in any law, or instrument, for the time being in force in the State, shall with effect from the commencement of this Act, be constructed as a reference to a 6 [Agriculture and Rural Development Bank] within the meaning of this Chapter.

(3) With effect from the commencement of this Act, and until such time as the names of the Land Mortgage Bank 7 [or of the Land Development Banks] and societies functioning in the State at the commencement of this Act are changed into 7 [Agriculture and Rural Development Banks], all acts done by them or mortgages and other documents executed by them, or in their favour, and all suits and other proceedings filed by or against them shall be deemed to have been done executed or filed as the case may be, by or against them as 7 [Agriculture and Rural Development Banks.]

Footnote:
1. These words were substituted for the words "State and other Land Development Banks" by Mah. 10 of 1988, s. 19.
2. Sub-section (1) was substituted by Mah. 43 of 1972, s. 3.
3. These words were substituted for the words "State Land Development Bank" by Mah.9.
4. These words were substituted for the words "Primary Development Bank" by Mah.10 of 1988, s. 19.
5. These words were inserted, by Mah. 10 of 1988, s. 20(a).
6. These words were substituted for the words "Land Development Banks", by Mah. 10. 19.
7. These words were inserted, by Mah. 10 of 1988, s. 20(b).

1 Section 112A - District Loan Committee, its term of office of delegates casual vacancies, powers of such committee, etc

(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of the 2 [State Agriculture and Rural Development Bank]
(a) There shall be a District Loan Committee for each District excluding the City of Bombay District and Bombay Suburban District.

(b) Every District Loan Committee shall consist of the following 3 [* * *] that is to say,--
4 [(i) delegates to be elected one each from every taluka in district.]

5 [l(i-a) two members, one from the persons belonging to the scheduled castes or Scheduled Tribes and one from the persons belonging to the weaker section, 6 [who shall be elected from the District;]

(ii) the District Deputy Registrar of Co-operative Societies of the concerned district, ex officio;

(iii) the Divisional Officer of the 7 [State Agriculture and Rural Development Bank] of the concerned division, ex-officio;

(iv) the District Branch Manager of the 7 [State Agriculture and Rural Development Bank] of the concerned district, ex-officio, who shall also act as the Secretary of the District Loan Committee.

8 [Provided that, in a district, where there are more than seven talukas and before the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1993, the elections to elect seven delegates on the District Loan Committee as provided by subclause (i), as it existed then, have already been held, the State Government shall nominate on such Committee, such additional number of delegates as may be necessary from the talukas from which no delegates are elected, so as to bring the total number of the delegates equal to the number of talukas in such district:

Provided further that, after having held the election as aforesaid, the two members to be nominated by the Registrar under sub-clause (i-a), as it existed then, have not yet been nominated by the Registrar, then the Registrar shall nominate such two members:
Provided also that, the term of office of all such nominated members shall be co-terminus with the term of office of the seven such delegates so elected:

Provided also that, at any election held after the commencement of the Maharashtra Cooperative Societies (Amendment) Act, 1993, any member of the State Agriculture and Rural Development Bank in the District belonging to the Scheduled Castes or Scheduled Tribes, or, as the case may be. weaker section, shall be eligible to contest such election;

9 [Explanation:-- For the purpose of sub-clause (i-a) the provision of clause (b), and of any order issued under clause (c) of the Explanation to section 73B shall apply in relation to the members to be elected thereunder.]

10 [(c) The delegates or members to be elected under sub-clauses (i) and (i-a) of clause (b) shall be elected by direct election, by the members of the State Agriculture and Rural Development Bank.

(d) Save as otherwise provided in this section, every election to elect delegates 11 [and members] shall be subject to the provisions of Chapter XI-A and shall be conducted in the manner laid down by or under that Chapter:

Provided that, reference to an election of a member of members of the Committee of a specified society in that Chapter or the rules made thereunder shall be deemed to be a reference to an election of 12 (delegates or members referred to in clause (b)].

(2) Every District Loan Committee shall have a Chairman, who shall be elected by the 13 [elected delegates and members thereof] from amongst themselves.

(3) Within fifteen days * from the date of election of the delegates 14 [and the members under sub-section (1)] an officer authorised by the Collector in that behalf shall convene the first 15 [meeting of the delegates and 16 [* * *] members] for election of a Chairman. The officer so authorised shall preside over such meeting, but shall not have the right to vote.

(4) The term of office of members other than ex-officio members of a District Loan Committee shall be for a period of five years and shall be deemed to commence on the date of the first meeting referred to in sub-section (3) and the term of office of the Chairman shall be coterminous with the term of such members and on expiry of their term they shall be deemed to have vacated their offices.

(5) A causal vacancy of an elected 17 [delegate, member] or Chairman occurring in the District Loan Committee due to any reason whatsoever shall be filled by election 16 [* * *] as soon as may be practicable after the occurrence of the vacancy:

Provided that, if the vacancy occurs within four months preceding the date on which the term of 18 [such delegate, or as the case may be, member] expires, the vacancy shall not, unless the Registrar otherwise directs, be filled:

Provided further that, 19 [the delegate, member] or Chairman elected 20 [* * *] to fill a vacancy shall hold office so long as 21 [the delegate, member] or Chairman in whose place he is elected 22 [* * *] would have held office, if the vacancy had not occurred.

(6) The District Loan Committee shall have the power to sanction by itself or to recommend for sanction by the committee of the 23 [State Agriculture and Rural Development Bank], as the case may be, loans to such extent and for such purposes as the committee of the 23 [State Agriculture and Rural Development Bank] may, from time to time, specify, and shall also perform such other functions as that committee may, from time to time entrust to it.

24 (7) The provision of sections 73-ID, 73A, 73-FF, 77A, 78, clauses (j) and (k) of section 146, (j) and (k) of section 147, sections 160A and 160B shall apply mutatis mutandis to the District Loan Committee as they apply in relation to a committee of a society.

Footnote:
1. Sections 112A. 112B 112C were inserted by Man. 10 of 1988, s. 19.
2. These words were substituted for the words "State Land Development Bank" by Mah.10 of 1988, s. 19.
3. These words "Twelve members were deleted by Mah. 13 of 1994, s. 10.
4. This sub-clause substituted by Mah. 13 of 1994, s. 10 (ii).
5. Sub-clause (i-a) was Inserted by Mah. 38 of 1986, s. 2(1)(b).
6. These words were substituted for the words "who shall be nominated by the Registrar" by Mah. 13 of 1994, s.10 (ii).
7. These words were substituted for the words "State Land Development Bank" by Mah.f 1988 s. 19.
8. These provison were added, by Mah. 13 of 1994, s. 10 (iv).
9. This Explanation was substituted by Mah. 13 of 1994, s. 10(v).
10. Clause (c) was substituted by Mah. 13 of 1994, s. 10(b).
11. These words were added by Mah. 13 of 1994, s. 10(c).
12. These words were substituted by Mah. 13 of 1994, s. 10(c)(ii).
13. These words were substituted by Mah. 13 of 1994, s. 10(2).
14. These words were substituted by Mah. 13 of 1994, s. 10(3)(a).
15. These words were substituted for the words "meeting of the delegates" by Mah. 38 of 1986, s. 2(3)(b).
16. The words "nominated" deleted by Mah. 13 of 1994, s. 10(4)(b).
17. These words were substituted for the words "member, nominated member" by Mah. 13 of 1994, s. 10(4)(a).
18. These words were substituted for the words "such member" by Mah. 13 of 1994, s.10(4)(c).
19. These words were substituted for the words "the member" by Mah. 13 of 1994, s.(4)(d).
20. These words "or a member nominated" deleted, by Mah. 13 of 1994, s. 10(4)(d).
21. These words were substituted by Mah. 13 of 1994, s. 10(3)(a).
22. These words were deleted by Mah. 13 of 1994.
23. These words were substituted for the words "State Land Development Bank", by Mah. 10 of 1988. s. 19.
24. Sub-section (7) was added by Mah. 31 of 1990, s. 3

1 Section 112AA - Election of delegate as member of Agriculture and Rural Development Bank from City of Bombay District and Bombay Suburban District

(1) Notwithstanding anything contained in this Act or the rules made thereunder, the members of the Agriculture and Rural Development Bank from the City of Bombay District and Bombay Sub urban District shall elect one delegate from amongst themselves for every general body meeting of the members of the Bank.

(2) Subject to the provisions of section 14, the Agriculture and Rural Development Bank shall make bye-laws for the purpose of the election of a delegate under sub section (1).

(3) The power to make bye-laws conferred by sub-section (2) is subject to the condition of the bye-laws being made after previous approval of the Registrar.)

Footnote:
1. This section was inserted, by Mah. 10 of 1988, s. 21.

Section 112B - General Body and committee of State Agriculture and Rural Development Bank

(1) Notwithstanding anything contained in this Act, or in the rules made thereunder, or in the bye-laws of the 1 [State Agriculture and Rural Development Bank,--]
(a) The delegates 2 [and members] elected in accordance with the provisions of clauses (c) and (d) of sub-section ( 1) of section 112 A 3 [and sub -section (1) of section 112 AA]] shall, for the purposes of section 72, constitute the general body of members of the 1 [State Agriculture and Rural Development Bank.]

(b) The committee of the 1 [State Agriculture and Rural Development Bank] shall consist of the following members, namely:--
(i) the Chairmen of all the District Loan Committees;

(ii) 4 [(A) two members, one each belonging to the Scheduled Castes or Scheduled Tribes and the weaker section, and

(B) three women members from amongst the members of the 1 [State Agriculture and Rural Development Bank.] who shall be co-opted by the committee in its first meeting to be convened by the Collector or an officer authorised by him in that behalf but the Collector or such officer shall not, while presiding over such meeting, have a right of vote; and where there is failure of the committee to so co-opt such member or members, the Collector of the Officer authorised by him shall report such failure to the Registrar within a period of seven days from the date of such meeting and thereupon the Registrar shall, within a period of seven days from receipt of such report, appoint on the committee such member or members, as the case may be, from amongst persons entitled to be so co-opted;

Explanation.--For the purposes of this sub -clause, the provisions of clauses (b) and (c) of and any order issued under clause (c) of the Explanation to section 73B shall, apply in relation to the members to be co-opted or appointed under this clause;

(iii) the Chairman of the Maharashtra State Co-operative Bank (or his representative), ex-officio;

(iv) two representatives of the employees of the 1 [State Agriculture and Rural Development Bank] to be selected by the recognised union or unions of employees, from amongst 5 [such employees. Where there is no recognised union or unions or where there is no union at all, the employees shall elect representatives from amongst themselves.
The election shall be held by the Collector in the manner laid down in Chapter XI-A of this Act.]

(v) the Commissioner for Co-operation and Registrar of Co-operative Societies, Maharashtra State (or his representative), ex-officio;

(vi) an Officer from the Agriculture and Co-operation Department, who is holding the post of Officer on Special Duty or any other post not lower than that of a Deputy Secretary to Government, to be nominated by State Government, ex-officio;

(vii) the Managing Director of the 1 [State Agriculture and Rural Development Bank] ex-officio, who shall also act as the secretary of the committee.

(2) The members referred to in sub-clause (i) of clause (b) of sub-section (1) shall cease to be members of the committee on the date of expiry of their term as Chairmen of the District Loan Committees and they shall be deemed to have vacated their offices and the term of office of the members referred to in sub-clauses (ii) and (iv) of clause (b) of sub-section (1) shall be co-terminus with the term of office of the members referred to in sub-clause (i) of clause (b) of sub-section (1) and they shall likewise on expiry of their term of office ceased to be members of the committee and shall be deemed to have vacated their office.

(3) 6 [(a)] The Committee shall have a Chairman 6 [and a Vice-Chairman] within 15 days after the two members referred to in sub -clause (ii) of clause (b) of sub-section (1) are co-opted or appointed as the case may be the Collector or an officer authorised by him in that behalf shall convenue a meeting of the members of the Committee for election of a chairman 7 [and a Vice-Chairman] who shall be from the members referred to in sub-clause (i) of clause (b) of sub-section (1) and such meeting shall be presided over by the Collector or by such authorised officer, but such presiding officer and the members referred to in sub-clauses (iii), (iv), (v), (vi) and (vii) of clause (b) of sub-section ( 1) sh all not have a right to vote at such meeting.

8 [(b) Notwithstanding anything contained in clause (a), within 15 days from the date of commencement of the Maharashtra Co-operative Societies (Amendment) Act, 1988, the Collector or an officer authorised by him in that behalf shall convene a meeting of the members of the Committee for the election of a Vice-Chairman who shall be from the members referred to in sub-clause (i) of clause (b) of sub-section (1) and such meeting shall be presided over by the Collector or by such authorised officer, but such presiding officer and the members referred to in sub-clauses (iv) to (vii) of clause (b) of sub - section (1) shall not have a right to vote at such meeting. The Vice-Chairman so elected shall hold office as such Vice-Chairman subject to the provisions of sub-section (4)].

Explanation.-- For the purposes of this sub-section, the expression "Collector" shall have the same meaning as in clause (a) of sub-section (2) of section 144A.

(4) Without prejudice to the provisions of sub-section (3), the Chairman 9 [and ViceChairman] shall be elected every year in the first meeting of the Committee convened within one month after the close of the co-operative year by the Collector or an officer authorised by him in that behalf and where the Chairman 9 [or Vice-Chairman] is to be elected to fill vacancy occurred due to any reason whatsoever the Collector or an officer authorised by him in that behalf shall convene the meeting of the Committee within one month from the date of occurrence of the vacancy and the provisions of sub-section (3) shall mutatis mutandis apply to such meetings.

The Chairman 9 [and Vice-Chairman] elected under sub-section (3) or sub-section (4) shall cease to be the Chairman 9 [and Vice-Chairman] on the date preceding the date of meeting held for election of the chairman 9 [and Vice-Chairman] after the close of the cooperative year and shall vacate his office.

(5) A casual vacancy of a member referred to in sub -clauses (ii) and (iv) of clause (b) of sub-section (1) due to any reason whatsoever shall be filled in by co-option by the committee or by selection by the recognised union or unions of the employees, as the case may be, within two months from the occurrence of such vacancy; and where there is failure on the part of the committee or such union or unions, as the case may be, to do so, then appointment by the Registrar:

Provided that, if the vacancy occurs within four months preceding the date on which the term of such member expires, the vacancy shall not, unless the Registrar otherwise directs, be filled:

Provided further that, the member so co-opted, selected or appointed to fill a vacancy shall hold office so long only as the member in whose place he is co-opted, selected or appointed would have held office, if the vacancy had not occurred.

(6) Where a person becomes a member by virtue of holding any office or being an employee, he shall cease to be a member of the committee, as soon as he ceases to be holder of that office or ceases to be such employee, as the case may be.

(7) The committee shall exercise such powers and perform such functions as may be conferred or entrusted to it by this Act or by the rules made thereunder or by the bye-laws of the 1 [State Agriculture and Rural Development Bank.]

(8) Without prejudice to the other provisions relating to the procedure at the meeting of the committee as maybe laid down by rules or bye-laws made in that behalf, one-third of the total number of members of the committee shall form the quorum at any meeting of the committee.

Footnote:
1. These words were substituted for the words "State Land Development Bank", by Mah. 10 of 1988, s. 19.
2. These words were inserted by Mah. 13 of 1994, s. 11.
3. These words were inserted, by Mah. 10 of 1988, s. 22(a).
4. This portion was substituted for the portion beginning with "two members" and ending with "weaker section", by Mah. 20 of 1992, s. 3.
5. These words were substituted for the words "such employees" by Mah. 7 of 1997, s. 13.
6. Sub-section (3) was re-lettered as clause (a) of the said sub-section (3) and after the word "Chairman" the words "and a Vice-Chairman" was Inserted, by Mah. 10 of 1988 s. 22(b).
7. Sub-section (3) was re-lettered as clause (a) of the said sub-section (3) and after the word "Chairman" the words "and a Vice-Chairman" was inserted, by Mah. 10 of 1988 s. 22(b).
8. This clause (b) was inserted by Mah. 10 of 1988, s. 22(c).
9. These words were inserted by Mah. 10 of 1988, s. 22(d).

Section 112C - [Deleted]

1 [* * * * * * *]

Footnote:
1. Section 112 C was deleted, by Mah. 10 of 1988, s. 23.

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