Investment of Funds

The Society shall invest or deposit its funds in accordance with the provisions of Section 70 and Section 154B-17 of the Maharashtra Co-operative Societies Act, 1960, read with Rule 54 and Rule 55 of the Maharashtra Co-operative Societies Rules, 1961.

(a) The Society shall invest or deposit its funds in one or more of the following modes as provided under the Act:—

(i) in the District Central Co-operative Bank or the State Co-operative Bank having at least "A" Audit Class in the last three consecutive years and, where such bank is not available, in any Nationalised Bank;

(ii) in any of the securities specified in Section 20 of the Indian Trusts Act, 1882, as permitted under Section 70 and Section 154B-17 of the Act;

(iii) in the shares, security bonds or debentures issued by any other co-operative society with limited liability;

(iv) in any other mode permitted by the Rules or by general or special order issued by the State Government.

(b) The Reserve Fund shall be invested strictly in accordance with the provisions of Section 66 read with Section 70 and Section 154B-17 of the Act and Rule 54 of the Rules. No part of the Reserve Fund shall be drawn, pledged or otherwise utilised except in accordance with the provisions of the Act and Rules and, wherever required, with the prior sanction of the Registrar.

(c) The Society may invest its funds, other than the Reserve Fund, when not immediately required for its business, in accordance with the provisions of Section 70 and Section 154B-17 of the Act read with Rule 55 of the Rules.

(d) The Registrar may, by general or special order, specify the maximum amount or proportion of funds that may be invested in any class or classes of securities, and may impose such conditions as may be deemed necessary, in accordance with Rule 55 of the Rules.

(f) Where the Society has invested an amount not less than ten per cent of its working capital in securities, it shall constitute an Investment Fluctuation Fund as required under Rule 55 of the Rules, and such portion of the net profits shall be credited to this fund as may be directed by the Registrar.

(g) Where no bank is eligible as prescribed under Section 70 and Section 154B-17 of the Act, the Society may invest its funds in any other mode permitted by the State Government or the Registrar as authorised under the Act and Rules.

(h) Compliance and Accountability. The Managing Committee shall ensure that—

(i) all investments are made strictly in compliance with the provisions of the Act and Rules;

(ii) safety and security of funds are ensured;

(iii) liquidity requirements of the Society are maintained; and

(iv) details of investments are properly recorded in the books of accounts and placed before the General Body in the Annual General Meeting.