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karnataka societies registration act

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Dear All,

A petition has been filed with district registrar of societies Bangalore about financial misapplication by the executive committee of the temple. The misapplication/misappropriation can be explained as spending money in violation of the byelaws of the society.  The present executive committee of the temple contends that these expenses were incurred by the previous executive committee and those annual accounts were approved in a previous annual general meeting and thus since accounts have been audited and approved by the general body, nothing be done at present.

My contention is that the annual general meeting passed the accounts in totality  in good faith and the executive committee did not reveal in the agm that some expenses had been incurred in violation of the byelaws and did not seek their specific approval from the general body during the agm. These expenses were only discovered a month back from an employee who resigned from the temple.

Please let me know if these accounts of the temple for the past years can be reopened for investigation and how.

Thanks,

Jasvinder Singh

 

 
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Scientist/Engineer

If the misapplication/misappropriation is clear, it was the auditor's fault. You can send notice to the then auditor asking him to explain and that if  he doesn't explain to your satisfaction, you shall write to the Institute of Chartered Accountants asking them to take action against him. Also action can be taken against the members of the previous Managing Committee.

There is a difference between misapplication and misappropriation. The latter is a criminal offence and you can take criminal action notwithstanding any auditing or approval of the General Body.

 
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Thank you Ramani Sir!! Any more opinions?

 
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