(1) If in the opinion of the Central Government, the board of any Suppression board of specified Multi State cooperative society is persistently making default or is negligent in the performance of the duties imposed on it by the Multi state cooperative societies Act, 2002 or the rules or the credit cooperative society or any other cooperative society 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 it under section 122 or that there is a stalemate in the constitution or functions of the board, the Central Government 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 six months, as may be specified in the order which period may, at the discretion of the Central Government, be extended from time to time however, that the aggregate period does not exceed one year.
(2) The Central Government may fix such remuneration for the administrators, as it may think fit and the remuneration shall be paid out of the funds of the specified multi state cooperative society.
(3) The administrator shall, subject to the control of the Central Government and to such instructions as it 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 specified 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 specified multi state Cooperative Society .
(5) If, at any time during the period the administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefore, direct the administrator to arrange for the constitution of a new board for such specified cooperative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function.
(6) Where a specified multi state cooperative society is indebted to any financial institution, the inquiry by central registrar in credit cooperative society shall Government before taking any action, under sub-section (1) in respect of that society, consult the financial institution.