Part IXB - Co-operative Societies • Article

Article 243ZQ Simplified: Offences and penalties

Article 243ZQ requires state legislatures to define offences and penalties for cooperative societies. Mandatory offences include filing false returns or information, disobeying lawful summons or orders, employer failing to remit salary-deducted member contributions to the cooperative within 14 days, withholding books and cash, and corrupt election practices.

Official Text

(1) The Legislature of a State may, by law, make provisions for the offences relating to the co-operative societies and penalties for such offences. (2) A law made by the Legislature of a State under clause (1) shall include the commission of the following act or omission as offences, namely:— (a) a co-operative society or an officer or member thereof wilfully makes a false return or furnishes false information, or any person wilfully not furnishes any information required from him by a person authorised in this behalf under the provisions of the State Act; (b) any person wilfully or without any reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of the State Act; (c) any employer who, without sufficient cause, fails to pay to a co-operative society amount deducted by him from its employee within a period of fourteen days from the date on which such deduction is made; (d) any officer or custodian who wilfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a co-operative society of which he is an officer or custodian, to an authorised person; and (e) whoever, before, during or after the election of members of the board or office bearers, adopts any corrupt practice.

Simple Meaning

Explain Like Ten

This rule says there will be punishments for people who cheat in cooperatives, like lying on reports, hiding books, or employers keeping money they subtracted from workers' paychecks instead of giving it to the cooperative.

Student Mode

Example

A factory manager deducts cooperative loan payments from workers' salaries but fails to transfer the funds to the cooperative credit society within 14 days. Under Article 243ZQ, the manager is guilty of a criminal offence and subject to penalties under state law.

Key Takeaway

Article 243ZQ deters financial fraud, employer defaults, and corrupt election practices in cooperatives by enforcing criminal penalties.

FAQs

What happens if an employer fails to pay salary-deducted amounts to a cooperative?

Under Article 243ZQ, it is a mandatory offence if an employer, without sufficient cause, fails to pay deducted amounts to the cooperative within 14 days of making the deduction.

Does corrupt election practice count as an offence under this article?

Yes. The article explicitly specifies corrupt practices during, before, or after board/office-bearer elections as an offence.

Quiz

If an employer deducts cooperative contributions from an employee's salary, within how many days must they pay it to the cooperative?

Answer: 14 days

Which of the following is defined as a mandatory offence under Article 243ZQ?

Answer: Wilfully making a false return or furnishing false information