Section 28. Special Audit.

(1) A Co-operative Society dealing with funds from the Government or other external individual or institutions may be subject to a special audit initiated by the Registrar at the request of such creditor, on such specific terms of reference as agreed to by the Registrar. (2) The cost of the special audit under sub-section (1) shall be met by the creditor: Provided that where the special audit reveals serious mismanagement in the Co-operative Society, such costs may be recovered from the Co-operative Society or the persons responsible for the mismanagement. (3) Every special audit shall be completed and the report submitted to the Registrar within one hundred and twenty days of its commencement. (4) The special audit report shall contain a statement of,- (a) every payment which appears to the audit to be contrary to law; (b) the amount of any deficiency, waste or loss which appear to have been caused by the gross negligence or misconduct of any person in the performance of duties; (c) the amount of any sum received which ought to have been accounted for but is not brought into account by any person; and (d) any material impropriety or irregularity which he may be in the expenditure or in the recovery of money due. (5) the Registrar shall, within a period of thirty days from the date of the receipt of the special audit report communicate copies of the same to,- (a) the applicant-creditor; (b) the Co-operative Society concerned; and (c) the Co-operative Tribunal where necessary.