TNCOS Rules 78Chapter VI · Properties and Funds of the Societies
Section 78 · Investment of funds in immovable properties
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(1)
A society may, with the previous sanction in writing of the Registrar, invest the whole or any portion of its funds in the purchase or lease of land or in the purchase, construction or remodelling of any building that may be necessary to conduct its business. The amount of the funds so invested shall be recouped on such terms as may be determined in each case by the Registrar:Provided that this rule shall not apply-(a)
to immovable property purchased-(b)
to the purchase or lease of lands or purchase, construction or remodelling of buildings of a society, the principal objects of which according to its bye-laws include such purchase, lease, construction or remodelling.(2)
No recoupment of the amount invested under this rule shall be necessary when the investment is made-(a)
by a society from its building fund constituted out of the profits; or(b)
by a society other than a credit society in which the share capital raised from the members is intended to be invested in immovable properties in accordance with its by-laws.(3)
No society shall dispose of any immovable property (other than a property purchased at a sale held in execution on or a decree by the society or by the financing banks to which the society is affiliated) for recovery of any sum due to the society acquired by the society without the prior sanction of the general body and the Registrar:Provided that a housing society or a society the object of which is to purchase and sell immovable property, may dispose of such immovable property without the sanction of the general body and the Registrar.Your private note on this section
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