77. Power of Central Government to direct special audit in certain cases.
(1) Where the Central Government is of the opinion
(a) that the affairs of any multi-State co-operative society are not being managed in accordance with self-help and mutual aid and co-operative principles or prudent commercial practices; or with sound business principles; or
(b) that any multi-State co-operative society is being managed in a manner likely to cause serious injury or damage to the interest of the trade, industry or business to which it pertains; or
(c) that the financial position of any multi-State co-operative society is such as to endanger its solvency,
the Central Government may at any time by order direct that a special audit of the multi-State co- operative society's accounts for such period or periods as may be specified in the order, shall be conducted and may by the same or a different order appoint either a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) or themulti-State co-operative society's auditor himself to conduct with special audit:
Provided that the Central Government shall not order for special audit of a multi-State co-operativesociety's accounts if that Government or the State Government either by itself or both hold less than fifty- one per cent. of the paid up share capital or of the shares in such multi-State co-operative society.
(2) The chartered accountant or the multi-State co-operative society's auditor appointed under sub- section (1) to conduct a special audit as aforesaid is hereafter in this section referred to as the special auditor.
(3) The special auditor shall have the same powers and duties in relation to the special audit as an auditor of a multi-State co-operative society has under section 73:
Provided that the special auditor shall, instead of making his report to the members of the multi-Stateco-operative society, make the same to the Central Government.
(4) The report of the special auditor shall, as far as may be, include all the matters required to be included in the auditors' report under section 73 and, if the Central Government so directs, shall also include a statement on any other matter which may be referred to him by that Government.
(5) The Central Government may by order direct any person specified in the order to furnish to the special auditor within such time as may be specified therein such information or additional information as may be required by the special auditor in connection with the special audit.
(6) On receipt of the report of the special auditor, the Central Government may take such action on the report as it considers necessary in accordance with the provisions of this Act or any other law for the time being in force:
Provided that if the Central Government does not take any action on the report within four months from the date of its receipt, that Government shall send to the multi-State co-operative society either a copy of, or relevant extract from, the report with its comments thereon and require the multi-State co- operative society either to circulate that copy or those extracts to the members or to have such copy or extracts read before the multi-State co-operative society at its next general meeting.
(7) The expenses of, and incidental to, any special audit under this section (including the remuneration of the special auditor) shall be determined by the Central Government which determination shall be final and paid by the multi-State co-operative society and in default of such payment, shall be recoverable from the multi-State co-operative society as an arrear of land revenue.