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48. Supersession of board.- (1) If in the opinion of the Central Registrar the board of any multi-State cooperative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the society or its members or has omitted or failed to comply with any directions given to its under section 47 or that there is a stalemate in the constitution or functions of the board, the Central Registrar may after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society to manage the affairs of the society for such period not exceeding one year; as may be specified in the order, which period may, at the discretion of the Central Registrar, be extended from time to time; so, however, that the aggregate period does not exceed two years.
(2) The Central Registrar may fix such remuneration for the administrators as he may think fit and the remuneration shall be paid out of the funds of the multi-State cooperative society.
(3) The administrator shall subject to the control of the Central Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the multi-State cooperative society and take all such actions as may be required in the interests of the society.
(4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board, in accordance with the bye-laws of the multi-State cooperative society.
(5) If at any time during the period of administrator is in office the Central Registrar considers it necessary or expedient so to do, he may, by order in writing giving reasons therefor, direct the administrator to arrange for the constitution of a new board for such multi-State cooperative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrators shall hand over the management of such society to such newly constituted board and cease to function.
(6) Where a multi-State cooperative society is indebted to any financial institution the Central Registrar shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution.
(7) Notwithstanding anything contained in this Act, the Central Registrar shall, in the case of a cooperative bank, if so required in writing by the Reserve Bank in the public interests or for preventing the affairs of the cooperative bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of a cooperative bank, pass an order for the supersession of the board of that cooperative bank and for the appointment of an administrator therefor for such periods not exceeding five years in the aggregate as may from time to time be specified by the Reserve Bank.
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