THE JAMMU AND KASHMIR SELF-RELIANT COOPERATIVES ACT, 1999
Section 23. Services primarily for members.
(1) A cooperative’s services shall normally be available to members only.
(2) After two years of its being registered under this Act, any cooperative found to be provided more than 25 of its core services, as specified in its articles of association, in terms of the value of transactions, to non-members in any given financial year may be defined by the Registrar as an “aberrant cooperative” and stand to lose for that year exemptions, if any, provided to it, on the ground that it is a cooperative, by this Act or other laws.
(3) Any cooperative found to be “aberrant” for three years in any continuous period of five years, shall be treated as a cooperative not operating on a cooperative basis and the Registrar or any person may apply to the Court for an order dissolving the cooperative.
Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.
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