Notwithstanding anything contained in the Registrar and registration of multi state cooperative society rules and without prejudice to the generality of the powers of the Central Government in sub-section(1) of the section 35, the election of the members of the board of directors of national cooperative societies specified in the Second Schedule to the Act and such other multi-State cooperative societies or class of multi-State cooperative societies, as the Central Government may, by general or special order notify, shall be conducted by such returning officers as may be appointed by the Central Registrar in this behalf. The election in such societies, shall be conducted in the manner hereinafter provided

(l) No member of any Multi state cooperative society or nominee of a member, society or a national cooperative society shall be eligible for being chosen as, or for being, a member of the board of such multi state society or a national cooperative society, or of any other cooperative society to which the multi State cooperative society is affiliated, if such member-
(a) has been adjudged by a competent court to be insolvent or of unsound mind;
(b) is concerned or participates in the profits of any contract with the society;
(c) has been convicted for an offence involving moral turpitude;
(d) holds any office or place of profit under the society;
(e) has been a member of the society for less than twelve months immediately preceding the date of such election or appointment;
(f) has interest in any business of the kind carried on by the society of which he is a member;
(g) has taken loan or goods on credit from the society of which he is a member, or is otherwise indebted to such society and after the receipt of a notice of default issued to him by such society, has defaulted-
(i) in repayment of such loan or debt or in payment of the price of the goods taken on credit within the date fixed for such repayment or payment or where such date is extended, which in no case shall exceed six months, within the date so extended, or
(ii) when such loan or debt or the price of goods taken on credit is to be paid in installments, in payment of any installment, and the amount in default or any part thereof has remained unpaid on the expiry of six months from the date of such default;
(h) is a person against whom any amount due under a decree, decision or order is pending recovery under the Multi State Cooperative Societies Act, 2002;
(i) is retained or employed as a legal practitioner on behalf of or against the multi state cooperative society, or on behalf of or against any other multi state cooperative society which is a member of the former society.
(j) has been convicted for any offence under this Act; (k) is disqualified for being a member under section 29; (1) has been expelled as a member under section 30;
(m) absents himself from three consecutive board meetings and such absence has not been condoned to by the board;
(n) absents himself from three consecutive general body meetings and such absence has not been condoned by the members in the general body.
(2) A person shall not be eligible for being elected as member of a board of a multi State cooperative society for a period of five years if the board of such multi state cooperative society fail
(a) to conduct elections of the board under section 45; or (b) to call the annual general meeting under section 39; or
(c) to prepare the financial statement and present the same in the annual general meeting.