Draft National Policy on Voluntary Sector-2006 v/s The HP Societies Registration Bill-2006

DRAFT NATIONAL POLICY ON VOLUNTARY SECTOR– 2006 [DNPVS-2006] & THE H.P. SOCIETIES REGISTRATION BILL-2006 [HPSRB-2006]
DNPVS-2006 declares
1. Preamble
1.1 This policy is a commitment to encourage, enable, and empower an independent, creative, and effective voluntary sector, with diversity in form and function, so that it can contribute to the social, cultural, and economic advancement of the people of India.

HPSRB-2006 proposes

Statement of Objects and Reasons of the HP Societies Registration Bill-2006: Chapter-I: Preliminary:

(3) This act shall apply to Societies formed for all or any of the following purposes, namely: –
(i) Promotion of science, education, literature or fine arts;
(ii) Diffusion of useful knowledge;
(iii) Diffusion of political knowledge;
(iv) Foundation or maintenance of libraries or reading rooms for general use among the members or open to the public;
(v) Establishment and maintenance of galleries of paintings and other works of art;
(vi) Establishment and maintenance of public museums;
(vii) Collection of natural history, mechanical and philosophical inventions, instruments or designs;
(viii) Promotion of social welfare;
(ix) Promotion of religious or charitable purpose including establishment of funds for welfare of military orphans, welfare of political sufferers and welfare of the like;
(x) Promotion and implementation of different schemes sponsored by the State Government or the Central Government;
(xi) Promotion of Commerce, Industries and Khadi; and
(xii) Promotion of Rural Development.

2. In this Act, unless the context otherwise requires:-
(b) “Family” means husband, wife and their unmarried sons and daughters;
(g) “Government” or “State Government” means the Government of Himachal Pradesh;
(k) “Regulations” or “bye-laws” means registered regulations or bye-laws of a Society for the time being in force;
(l) “Society” means a Society registered under section 6 of this Act; and
(m) “State Aided Society” means a Society which receives or has received land, building or both on concessional rates and other facilities from the Central Government or any statutory body or any other agency located in India or abroad.
DNPVS-2006 declares
1.2 The voluntary sector has contributed significantly to finding innovative solutions to poverty, deprivation, discrimination and exclusion, through means such as awareness raising, social mobilization, service delivery, training, research, and advocacy. This policy recognizes the important role that the voluntary sector has to play in various areas and affirms the growing need for collaboration with the voluntary sector by the Government, as well as by the private sector, at the local, provincial and national levels.

HPSRB-2006 proposes

Statement of Objects and Reasons of the HP Societies Registration Bill-2006:
At present, the law relating to the societies and their registration in Himachal Pradesh is governed by the societies registration act, 1860 (Central act XXI of 1860).The state government is conscious of the fact that the social, economic and political environment and also the development philosophy have undergone tremendous change since the Societies Registration Act 1860 was enacted. The state from being a mere regulator has assumed the role of provider of development services, subsidies, incentives etc. and coupled with the large scale material progress of the society, with the passage of time, various provisions of act have become obsolete. The said act provides for most basic matters such as registration etc. and is silent about many vital aspects of functioning of these organizations such as functions of governing body /general body, elections, dispute resolutions, system of checks and balances and public accountability etc. The state government is also aware of the emerging development paradigm- that of state- civil society partnership and increasing societization of state functions which underscores the need for state government to continuously know, guide, direct and monitor as to how those devolved functions are being performed and whether large public interest is being served by the Societies.
Of late, there has been upsurge in the number of societies registered under the said act. The state government appreciates the Societies are now being registered not only for social, literary or voluntary work but also in areas of education, training and promotion of rural development etc. Primarily to implement the services being offered, funded or promoted by various donor organization, government of India or state government witch necessitates border public participation, disclosure and accountability.
Hence it has been decided to repeal the societies registration act 1860 in its application to the state of Himachal Pradesh and to re-enact a comprehensive legislation covering all aspect of functioning of these societies and eliminate chances of malpractices due to infirmities in the legal framework, and witch interalia provides for,
(i) Broad basing the membership base of such societies;
(ii) Laying down the functions of governing body/general body;
(iii) A system of checks and balances in functioning of such societies; and
(iv) For election, audit, dispute resolution and related matters.
This bill seeks to achieve the aforesaid objectives.
DNPVS-2006 declares
2. Scope of the Policy
2.1 In the Policy, Voluntary Organizations (VOs) mean to include organizations engaged in public service, based on ethical, cultural, social, economic, political, religious, spiritual, philanthropic or scientific/ technological considerations. They include informal groups; community-based organizations (CBOs); charitable organizations; non-governmental development organizations (NGDOs); organizations that support informal groups, charitable organizations etc.; organizations that are networks or federations of such organisations; as well as professional membership associations.

2.2 To be covered under the Policy, VOs should broadly have the following characteristics

· They are private, i.e., separate from government

· They do not return profits generated to their owners or directors

· They are self-governing, i.e., not controlled by government

· VOs are registered organizations or informal groups, with defined aims and objectives.

3. Objectives of the Policy

3.1 The specific objectives of the policy are listed below:

3.1.1 To create an enabling environment for VOs that stimulates their
enterprise and effectiveness, and safeguards their autonomy;

3.1.2 To enable VOs to legitimately mobilize necessary financial resources
from India and abroad;

3.1.3 To identify systems by which the Government may work together with
VOs, on the basis of the principles of mutual trust and respect, and
with shared responsibility and authority; and,

3.1.4 To encourage VOs to adopt transparent and accountable systems of
governance and management

The following paragraphs describe how these objectives are to be achieved.

4. Establishing an Enabling Environment for the Voluntary Sector

4.1 The independence of VOs allows them to explore alternative paradigms of development; to challenge social, economic and political forces that may work against public interest; and to find new ways to combat poverty, deprivation, and other social problems. It is therefore crucial that all laws, policies, rules, and regulations relating to VOs categorically safeguard their autonomy, while simultaneously ensuring their accountability.

HPSRB-2006 proposes

The HP Societies Registration Bill-2006: Chapter-VIII: Amalgamation, Division, Dissolution and Winding up of Societies:
43.(1) Any two or more societies may, by a special resolution of both or all such Societies, and confirmed by a like resolution at a second meeting of both or all such societies, convened after an interval of one month after the first meeting, get amalgamated into one society with or without any dissolution or division of the funds of any of the societies with intimation to the registrar.
(2) Any society may, be a special resolution divide itself into two or more societies, and such resolution shall contain proposals for the division of the assets and liabilities of the society among the new societies into which it is proposed to divide itself and may also specify the area of operation of, and the member, who will constitute each of the new societies.
(3) An amalgamation or division in pursuance of this section shall not prejudice any right of a creditor of any Society, which was a party to such amalgamation or division.
44.(1) A society may, by a special resolution, determine that it shall be dissolved of and thereupon, with prior intimation to the registrar, it shall be dissolved at the time specified in the resolution and all the necessary steps shall be taken for the disposal and settlement of the property of the society, and if there are no bye-laws to this effect in the manner as the general body may find expedient:
Provided that in the event of any dispute arising among the members of the governing body or the members of the society, the adjustment of its affairs shall be referred to the court shall make such order in the matter including appointment of liquidator as its deems fit:
Provided further that if the Central Government or any State Government is a member of, or a contributory to, any Society registered under this Act, such Society shall not be dissolved without the consent of the Government concerned.
(2) A society dissolved under this section shall file with the registrar a full report showing as to how the property has been disposed of.
45.(1) Notwithstanding any thing contained in this act, the registrar may, be an order in writing, cancel the registration of any society on of any society on any of the following grounds:-
(a) That the registered society is contravened any of the provision of this act or the rules made there under; or
(b) That the registered society is insolvent, or must necessarily become so; or
(c) That the business of any such registered society is conducted fraudulently or not in accordance with the bye-laws or the objects specified in the memorandum field with the registrar under section 4.
(2) If it appears to the Registrar that any registered society is carrying on any unlawful activity or allow unlawful activity to be carried on with in any premises under the control of the society, the registrar may hold an enquiry into the activities of such society and in respect of every such enquiry, the Registrar shall have the same powers as are specified in sub-section (3) of section 39.
(3) If on an enquiry under sub-section (2), the Registrar is satisfied that any such society has been carry on any unlawful activity or has allowed any unlawful activity to be carried on with in any premises under the control of the society, he shall, after giving reasonable notice to the society to show cause why the registration of society should not be cancelled and after considering the representation , if any , made on behalf of the society ,by order, cancel the registration of the society and shall communicate the order of cancellation forthwith to the registered society.
Explanation:- for the purpose of this section an activity shall be deemed to be unlawful if such activity is an offence punishable under any provision of law for the time being in force.
46. If upon the dissolution of any society, there remains after the satisfaction of all its debts and liabilities any property whatsoever, the same shall not be paid to, or distributed among, the members of the said society or any of them. But shall be given to some other societies, to be determined by the votes of not less than three- fifths of the members present personally at the time of dissolution or in default, thereof, by the court specified in section 44
47. Orders made under section 44 shall, on application, be enforced as follows: –
(a) When made by a liquidator, by a civil court having local jurisdiction, in the same manner as a decree of such court; and
(b) When made by the court on appeal, in the same manner as a decree of that court
48. (1) It shall be lawful for the members of any society dissolved under section 44 to determine by majority of votes of the members present or by proxy at the time of dissolution of such society that any property whatsoever remaining after satisfaction of all its debts and liabilities shall be given to Government to be utilized for any of the purposes referred to in subsection (3) of section 1.
(2) In the event of cancellation of the registration of society under section 44, all the moveable assets of the society or its institution or centers shall vest in the state Government to the extent of assistance, grant, aid or donation that the society may have received from Central or State Government or any of the statutory bodies, and it shall be the duty of the collector of the district where the property is situated to take charge of the same on intimation of cancellation by the Registrar.
DNPVS-2006 declares
4.2 Voluntary organizations may be registered as societies, as charitable trusts, or as non-profit companies under central or state laws. Some states have adopted the Societies Registration Act (1860), with amendments, while others have independent laws. Similarly, laws relating to charitable trusts vary across states. Over time, many of these laws and their corresponding rules have become complex and restrictive, thus leading to delays, harassment, and corruption. As the nodal agency for interface between the government and the voluntary sector, the Planning Commission will encourage state governments to review prevailing laws & rules and simplify, liberalise, and rationalise them as far as possible. In order to facilitate registration of non-profit companies, the government will examine measures to simplify procedures under section 25 of the Companies Act (1956), including those for license, registration, and remuneration to member-employees.
4.3 The government will also examine the feasibility of enacting a simple and liberal central law that will serve as an alternative all-India statute for registering VOs, particularly those that wish to operate in different parts of the country, and even abroad. Such a law would co-exist with prevailing central and state laws, allowing a VO the option of registering under one or more laws, depending on the nature and sphere of its activities.

4.4 There has been much public debate on the voluntary sector, particularly its governance, accountability, and transparency. It is widely believed that the voluntary sector must address these issues through suitable self-regulation, as is the practice in various other fields. The government will encourage the evolution of, and subsequently accord recognition to, an independent, national level, self-regulatory agency for the voluntary sector.

4.5 At the same time, there is need to bolster public confidence in the voluntary sector by opening it up to greater public scrutiny. The Government will encourage Central and State level agencies to introduce norms for filing basic documents in respect of VOs which have been receiving funding by Government agencies and placing them in the public domain (with easy access through the internet) in order to inculcate a spirit of public oversight.

HPSRB-2006 proposes

The HP Societies Registration Bill-2006: Chapter-VI: Annual Returns, Audit, Inspection and Supervision
34. Once in every year, on or before the fourteenth day succeeding the day on witch according to the regulation of the society the annual general meeting, of the society is held or if the regulation do not provide for an annual General meeting, then within fourteen days of the 31^st day of January, a list containing the full names, permanent addresses and chief occupation and others, if any, with signatures of the governing body, shall be filed with the registrar by the president or secretary, in such form with such documents together with such fee as may be prescribed;
Provided that the registrar may, for reasons to be recorded in writing, grant further time not exceeding fifteen days for compliance:
Provided further that if the society fails to file the list within the specified time limit or within the extended time, it may file the file same within such further extended period but not exceeding 30 days and with such late fee as may be prescribed.
35.(1) Every society shall send to the Registrar a statement of income and expenditure with full particulars in such from as may be prescribed duly audited by its Auditors /Chartered Accountants audit report and balance sheet of the previous year along with details of all financial activities tougher with such free as may be prescribed within ninety days from the date of annual general meeting of the society of from 30 days of April, every year where the regulation do not provide for an annual general meeting .If the society fails to send the aforesaid statements within the stipulated time the society shall be liable to pay late fee as may be prescribed .
(2) On receipt of such statement, the Registrar shall verify the statements and shall ensure that the register, account books and other record of the societies are maintained in the prescribed manner and the funds have been utilized for the promotion of the Society and its objects and he may also issue such instructions in respect of founds as he may think fit;

Provided that account of Society having annual transaction one lac rupees shall be submitted to the Registrar duly audited by Chartered Accountant:

Provided further that Society having annual transaction exceeding five lac rupees shall publish, every year, its audited balance sheet including profit /loss account statement in a prominent local daily news paper.
(3) If the registrar thinks necessary to undertake a special audit, he may audit, or cause to be audited by any person authorized by him by general or special order in writing in this behalf, the accounts of any society.
(4) Any person authorized by general or special order, in writing in this behalf, by the Registrar shall, at all times, have access to all the books of account and other paper of a society and every officer of the society shall furnish such information in regard to the account and working of the society as the person making such inspection may require.
36. Any person may inspect all or any of the documents filed with the Registrar under this act, or require copy or extract of any such document to be certified by the registrar, by filling an application together with such fee as may be prescribed, and such certified copy shall be prima facie evidence of matters therein contained in all legal proceedings may require.
37. The Registrar shall have power to summon and enforce the attendance of witnesses including the parties or any of them and to compel them to give evidence, and compel the production of document by the same means and as far as possible in the same manner as provided in the code of civil procedure, 1908.
38.(1) Where on perusing any document which a society is required to submit to him under this Act, the Registrar is of opinion that any information or explanation is necessary in order that such document may afford full particulars of the matters to which it purports to relate, he may, by written order call on the society submitting the documents to furnish in written such information or explanation within such time as he may specify in the order.
(2) On receipt of the order by the Society under sub section (1), it shall be duty of the Society and all persons who are officers of the Society to furnish such information or explanation to the best of their power.
DNPVS-2006 declares
4.6 Public donation is an important source of funds for the voluntary sector, and one that can and must increase substantially. Tax incentives play a positive role in this process. Stocks and shares have become a significant form of wealth in the country today. In order to encourage transfer of shares and stock-options to VOs, the government will consider suitable tax rebates for this form of donation. The government will also simplify and streamline the system for granting income tax exemption status to charitable projects under the Income Tax Act. At the same time, the government will consider tightening administrative and penal procedures to ensure that these incentives are not misused by paper charities for private financial gain.
4.7 International funding of voluntary organizations plays a small, but significant part in supporting such organizations and their work in the country. An organization seeking foreign funding must be registered under the Foreign Contribution (Regulation) Act. This law prescribes highly stringent screening norms that often restrict the ability for VOs to avail of foreign funds. When approved, these funds must be held in a single bank account, thus presenting enormous difficulties to VOs working at different locations. The government will review the FCRA and simplify its provisions that apply to VOs.

4.8 The Central Government has framed guidelines for bilateral agencies to give direct assistance to voluntary organizations for projects of social and economic importance. It controls access to such funds and their utilisation, both through the FCRA and through regulation by the Department of Economic Affairs. This system needs to be simplified.

4.9 The tax exemption framework in the country has been progressively tightened in order to prevent businesses from availing of tax exemption by masquerading as charities. The scope for tax evasion also exists where fees are the predominant source of income, notably in private schools and hospitals. Therefore, it is necessary to make a distinction between public-utility organizations depending on fees, and public-benefit organizations depending on grants, as is the practice in some other countries. The government will introduce measures for separate classification and differential treatment of the two categories under the Income Tax Act.

4.10 Under the Income Tax Act, a VO must spend at least 85% of its annual income in the same year. This means that it cannot set aside more than 15% of its annual income as surplus funds, or transfer them to its corpus. This feature restricts a VO from building up capital. With a view to strengthening the financial sustainability of the voluntary sector, the government will review the existing provisions related to annual spending limit and procedures for creating corpus funds in order to encourage VOs to plough back a greater part of their income to their corpus.

4.11 India is emerging as a regional and global player, both economically and politically. This trend is visible in the voluntary sector as well. Some Indian VOs have the capacity to extend their work to other countries. A number of international development organizations are interested in partnering Indian VOs for a range of activities in India and abroad. The government will introduce suitable provisions in the Income Tax Act and the FCRA to allow VOs to spend their funds in other countries for suitable philanthropic and charitable purposes, barring funding of electoral politics, religious or ethnic sectarianism, and any other purpose restricted by local laws in the concerned country.

4.12 The Government will encourage all relevant Central and State Government agencies to introduce pre-service and in-service training modules on constructive relations with the voluntary sector. Such agencies should introduce time bound procedure for dealing with the Voluntary Organizations. These would cover registration, income tax clearances, financial assistance, etc. There should be formal systems for registering complaints, and for redressing grievances of VOs.

DNPVS-2006 declares
5 Partnership in Development
5.1 The voluntary sector can play an important role in the development process, particularly through community participation. VOs can offer alternative perspectives; committed expertise; an understanding of the local opportunities and constraints; and, perhaps most importantly, the capacity to conduct a meaningful dialogue with communities, particularly those that are disadvantaged. It is therefore essential that the Government and the voluntary sector work together. Where feasible, such partnership may also include other entities such as Panchayati Raj institutions, municipalities, academic institutions, and private sector organizations.

5.2 Partnership between government and VOs implies identifying shared goals, and defining complementary roles. It must be based on the basic principles of mutual trust and respect, with shared responsibility and authority. These principles must be explicit in the terms and conditions of the partnership. They must also be evident in the formal and informal systems of collaboration.

5.3 This policy recognizes three instruments of partnership, viz., (i) consultation, through a formal process of interaction at the Centre, State and district level; (ii) strategic collaboration to tackle complex interventions where sustained social mobilization is critical over the long term; and (iii) project funding through standard schemes. The Government will ensure that these three instruments of partnership are given due attention in Annual Plans prepared by Ministries. The action that will be taken in respect of each of the three instruments is discussed in the following paragraphs.

5.4 The government will encourage setting up of Consultative Groups or Joint Machineries by relevant Central Departments/Ministries (including the areas of social welfare, health, education, agriculture, rural development, environment & forests, science & technology, etc.) and State Governments. It will also encourage district administrations, district planning bodies, district rural development agencies, zilla parishads, and local governments to do so. These groups will be permanent forums with the explicit mandate to share ideas, views, and information, and to identify opportunities and mechanisms of working together. The Government will introduce suitable mechanisms for involving a wide cross-section of the voluntary sector in these forums.

5.4.1 The expertise of the voluntary sector will also be utilized by including experts from VOs in the committees, task forces, and advisory panels constituted by the Government from time to time to help address important issues.

5.5 The country faces a number of complex problems that require adaptive, multi-sectoral solutions where sustained social mobilization is particularly important. These include poverty alleviation, empowerment of women, population stabilization, combating HIV/AIDS, water resources, elementary education and forest management, to name just a few. Such areas urgently require strategic collaboration between the Government and VOs, through national level programmes that are long-term in duration, and utilize multiple strategies, methodologies, and activities to achieve their objectives. The government will identify national collaborative programmes to be implemented in partnership with VOs. Each national collaborative programme will involve a finite set of reputed, medium or large VOs with a proven track record, and the ability to work on a reasonably large scale. The Government will ensure that such national collaborative programmes are given due importance in Plan documents.

5.6 The third instrument of partnership between the Government and the voluntary sector is project funding. A large number of government agencies operate schemes for financial assistance to VOs. These schemes usually deal with activities such as surveys, research, workshops, seminars, documentation, awareness raising, training, creation of public welfare facilities, running public welfare facilities, and so on. Project grants are a useful means for the Government to promote its activities without its direct involvement. They are also a valuable source of support to small and medium VOs. Nevertheless, there are legitimate concerns regarding the effectiveness of grant-in-aid schemes. Out-dated design of funding schemes, arbitrary procedures, selection of unsuitable VOs, poor quality of implementation, and misuse of funds are some of the reasons for the possible defeat of the objectives of such funding.

5.6.1 Some Central agencies have achieved good results by decentralizing the process of project funding. Rather than administering various schemes directly, they appoint regional or State level intermediary organizations to do so on their behalf. This allows for closer interaction for better selection and monitoring of VOs. Intermediaries could include umbrella VOs, professional or academic institutes, State Government agencies, or multi-stakeholder standing committees. The Government will review the experience of such decentralized funding and make suitable recommendations to Central agencies.

5.6.2 There is reason to believe that accreditation of VOs will lead to better funding decisions, and make the funding processes more transparent. Further, accreditation may provide incentives for better governance, management, and performance of VOs. No reliable accreditation system is in place at present. The Government will encourage various agencies, including those in the voluntary sector, to develop alternative accreditation methodologies. It will allow time for such methodologies to be debated and gain acceptability in the voluntary sector, before considering their application to Government funding of VOs.

DNPVS-2006 declares
6. Strengthening the Voluntary Sector:
6.1 The Indian society has a well-established tradition of philanthropy. While a regime of tax concessions facilitates donations to charitable organizations, there is considerable untapped potential to channelise private wealth for public service. The government will support and encourage existing, as well new, independent philanthropic institutions to provide financial assistance to deserving VOs. It will also promote a dialogue among public and private grant makers so that they may take advantage of the best practices in grant making.

6.2 Accountability to all stakeholders and transparency in functioning are key issues in good governance. The voluntary sector is expected to set its own benchmarks in these areas. Since VOs vary in their objectives and activities, it would be impractical to expect uniform norms for accountability and transparency. The Government will encourage support organizations, and VO networks and federations to facilitate discussion and consensus building on these issues. It will also encourage such agencies to advise and assist VOs to adopt norms that they find acceptable and useful. The Government will recognize excellence in governance among VOs by publicizing best practices.

HPSRB-2006 proposes

The HP Societies Registration Bill-2006 proposes: Chapter-V: Properties and Funds of the Societies:32

(1) Every society shall keep at its head office proper books of accounts in which shall be entered accurately:-
(a) All sums of money received and the source thereof, and all sums of money expended by the society and the object or purposes for which such sums are expended;
(b) The assets and liabilities of the society; and
(c) Details of immovable property acquired by the society.
(2) The books of accounts shall be open to inspection by the office bearer or member of the society or the registrar or the person authorized by the registrar during the office hours.
(3) For the purpose of sub-section (1), proper books of account shall not be kept with respect to the matter specified therein, if they do not give a true and fair view of the state of society and explain its transactions.
33.(1) Where the registrar is satisfied that-

(a) The records, register or the books of account of a society are likely to be tampered with or destroyed and the funds and the property of a society are likely to be misappropriated or misapplied; or
(b) If the governing body of a society is re-constituted at a general meeting of the society and outgoing members of the governing body refuse to handover charge of the records and property of the society to those having to or entitled to receive such charge,

The registrar may issue an order directing a person duly authorized by him in writing to seize and take possession of such books and records, funds and property of the society and the officer or officers of the society responsible for the custody of such books, records, funds and property shall give delivery to the person so authorized.
(2) In order to secure compliance of the orders under sub-section (1), the registrar may take or cause to be taken such steps and use or cause to be used such minimum force including police force as may be considered necessary.

HPSRB-2006 proposes

The HP Societies Registration Bill-2006 proposes: Chapter VII: Enquiry and Settlement of Disputes:
39. (1) The Registrar may, on his own motion or on an application made under sub-section (2), either by himself or by a person authorized by him, by order in writing, hold an enquiry into the constitution, working and financial conditions of a society.
(2) An enquiry under sub – sections (1) shall be held on the applications supported by an affidavit

(a) majority of the members of the Governing body of the society ;or
(b) not less than one-third of the total numbers of the society.

(3) The Registrar or the person authorized by him under sub –section (1) shall, for the purpose of an enquiry under this section, have the following powers, namely; –
(a) He shall at all times have free access to the books, accounts, documents, securities, cash and other properties belonging to, or in the custody to the society and may summon any person in possession, or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same, if they relate to the head office of the society at any place at the headquarters thereof and if they relate to any branch of the society, at any place in the town wherein such branch thereof is located or in his own office ;
(b) He may summon any person who, he has reason to believe to have knowledge of any of the affairs of the society to appear before him at any place at the head quarters of the society or any branch thereof or in his own office and may examine such person on oath;
(c) He may notwithstanding any regulation or bye-law specifying the period of notice for a general body meeting of the society, require the officers of the society to call a general body meeting of the society at such time at the head office of the society or any other place at the headquarter of the society and to determine such matters as any be directed by him and where the officers of the society refuse or fail to call such a meeting, he shall have power to cell it himself; and
(d) Any meeting of the society called under clause (c) shall have all the power of a general body meeting called under the regulations or bye –laws of the society and its proceedings shall be regulated by such byelaws.
(4) When an enquiry is made under this section, the registrar shall communicate the out come of the enquiry to the society and may issue appropriate directions to the society, which shall be binding on all parties concerned.

40. (1) where, in the courses of audit under section 35 or an enquiry under section 39, it appears that any person who had taken part in the establishment or management of the society or any past or present president, secretary, member of the staff of the society; has misapplied or retained, or become liable or accountable for any money or property of the society, or has been guilty of misfeasance or branch of trust in relation in society, the Registrar may, on a report received from the officer or an application received from the governing body of the society or his motion , examine into the conduct of such person and after giving reasonable opportunity to the person concerned to submit his explanation , make an order requiring him to repay or restore the money or property or any part thereof , respectively with interest at such rate as may be prescribed or to contribute such him to the assets of the Society by way of compensation in regard to the misapplication, retainer, misfeasance or breach of trust as the Registrar thinks just.
(2) Any sum ordered under this section to be repaid to a society or recovered as a contribution to its assets, on a requisition being made in this behalf by the registrar, shall be recovered as arrears of land revenue under the provision of the Himachal Pradesh land revenue act, 1954.
(3) This section shall apply notwithstanding any criminal prosecution launched or proposed to be launched against such person.
41. (1) If, in the opinion of the Registrar, Governing body of any State Aided Society or any other Society engaged in delivering services to public, such as education, health, sanitation etc.
(a) Persistently makes default or is negligent in the performance of the duties imposed on it by or under this act, regulations or byelaws of the society or by any lawful order passed by the State government or registrar, or is unwilling to perform such duties; or
(b) Commits acts which are prejudicial to the interest of the society or its members; or
(c) is otherwise not functioning properly,
The Registrar may, by order in writing, remove the Governing body and appoint one or more Administrators to manage the affairs of the society for a specified period not exceeding six months in the first instance:
Provide that were it is proposed to remove the governing body of the society exclusively on the ground that election on the governing body were not held in accordance with the provision of this act or the regulation or bye laws made there under, no action shall be taken under this sub-section unless the Registrar or an officer authorized by him in this behalf has convened a meeting of the general body for conducting the election there to in accordance with the provisions of this act, or the regulations or bye laws made there under but has failed to get the new Governing body elected.

(2) No order under sub-section (1) shall be made unless the governing body has been given a reasonable opportunity of being heard.

(3) The period specified in the order under sub-section (1) may be extended for further period of six months, for the reasons to be recorded in writing, by the Registrar, and there after no further period shall be extend.
(4) The administrator(s) appointed under sub-section (1) shall, subject to the control of registrar and to such instruction as he may, from time to time, give, have power to exercise all or any of the functions of the Governing body or of any officers of the society, and to take all such actions as may be required in the interest of the society:

Provided that administrator (s) will enroll no member and make no appointment.
(5) The registrar may fix the remuneration payable to the administrator (s), and the amount of such remuneration and other costs, if any, incurred in the management of the society shall be payable from the funds of the society.
(6) The administrator (s) appointed under sub-section (1) shall, at the expiry of the period of appointment, arrange for the constitution of a new governing body in accordance with the regulation of the society.

(7) If there is difference of opinion between the general body of the society and administrator (s) appointed under sub-section (1) in respect of any matter, it shall be referred to the registrar for decision and his decision thereon shall be final.
(8) During the period between the issuance of notice and the passing of an order removing the governing body, the governing body may be required by the registrar to function under the supervision and with the approval of such authority as the registrar may specify in this behalf and no order made or resolution passed or any other act performed by the governing body, shall be affective unless it is approved by such specified authority.
(9) Where the registrar, while processing to take action under sub-section (1) is of the opinion that suspension of the governing body or any member during the period of proceeding is necessary in the interest of the society, he may suspend, such governing body or member, as the case may be, and where the governing body is suspended, make such arrangements as he think proper for the proper management of thee affairs off the society till the proceeding are completed;
Provided that if the governing body or member so suspended is not removed, it or he shall be reinstated and the period of suspension shall count towards its or his term.
42. (1) In the event of any dispute arising among the governing body or the member of the society or its employees in respect of any matter relating to affairs of the society, any member or governing body or employee or ex-employee or ex-member of the society may refer the dispute to the registrar for decision, who may either decide the dispute to the registrar for the decision, who may either decide the dispute himself or refer such dispute to any other officer for disposal.
(2) Dispute for the purpose of sub-section (1) shall also include matters relating to claim by or against the society and any matter arising in connection with the election of governing body.
DNPVS-2006 declares
6.3 Training is a crucial requirement for people working in the voluntary sector. However, this is often neglected on account of limited availability of good quality training courses that are reasonably priced. The Government will support and encourage organizations that train aspirants to enter the voluntary sector, as well as those already working in the sector. It will make available physical facilities currently available with its training institutes as a measure of such support.
6.4 Innovation in institutional, technical, and social approaches to development problems is an essential ingredient of voluntary action. The Government will encourage and recognize innovative and pioneering work.

6.5 Databases of VOs working in different fields, and at different levels, are useful for communication within the voluntary sector, as well as between the voluntary sector, Government, and private sector. The Government will commission suitable agencies to prepare and update such databases.

6.6 Information on Government policies and programmes is often difficult for VOs to access. The websites of various Government agencies will be re-designed to provide links to key documents and databases, including those related to project funding schemes.

6.7 The Government will encourage the involvement of volunteers in public services such as schools, family welfare centers, primary health centers, hospitals, vocational training centers, etc.

This National Policy on the Voluntary Sector 2006 is the beginning of a process to evolve a new working relationship between Government and the Voluntary Sector, without affecting the autonomy and identity of VOs.

HPSRB-2006 proposes

The HP Societies Registration Bill-2006 proposes: Chapter XI: Miscellaneous:
52. Every officer or person exercising or authorized to exercise powers under this act or the rules made there under shall be deemed to be a public servant with in the meaning of section 21 of the Indian penal code, 1908.
53. No suit, prosecution or other legal proceeding shall lie against the Registrar or any person subordinate to him or acting under this authority in respect of any thing done by or purporting to have been done by him in good faith under this act.
54.(1) Any society registered out side the state; but wishes to open its branch(s) in the state, shall obtain No Object Certificate from the registrar before opening of such branch and shall pay such fee as may be prescribed:

Provided that if such Society does not comply with the direction or order of the Registrar or the Government then No Object Certificate shall be cancelled.
(2) The branch(s) of such Society shall be governed under the provision of this act,
55.(1) The state Governing may prescribe the fees chargeable for the following purposes, namely: –
(a) For registration of society;
(b) For inspection of document in the custody of the Registrar;
(c) For making or granting copies of orders, decision, entries or documents, before or after registration; and
(d) For such other matters as appears to the Government necessary to give effect to the purposes of this Act.
(2) All fees, charges and other sums paid to the Registrar or any officer of the Government in pursuance of this Act shall be credited to the consolidated fund of the state.
56.(1) The state Government may, by notification in the Official Gazette, makes rules to carry out the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: –
(a) The levy of registration fee under section 6;
(b) Form and the procedure to be followed for amendment of memorandum or regulation or bye laws of registered society and the fee to be charged under section 9;
(c) The procedure and conditions for change the name of a Society and fee to be charged for issue of certificate under section 11;
(d) The qualification or disqualification for membership of the governing body of a society under section under section16;
(e) Procedure for election of the members of the government body under section 20
(f) The levy of fee and late fee for submission of annual list of governing body with registrar and the form and documents to be submitted with the annual list under section 32;
(g) From of statement of income and expenditure and return to be furnished by a society to the registrar and fee to be charged and fee for filing such statement and return and late fee for filling such statement and return and the procedure to be followed under section 35 for maintained of register, account books and other records by the society;
(h) Inspection of documents and the fees to be charged under section 36;
(i) The rate of interest to be charged under sub-section (2) of section 40;
(j) Procedure for granting no objection certificate and the levy of fees thereof under section 54;
(k) The procedures for appeal under sub-section (2) of section 51 and fee for such appeal;
(l) The fees to be charged for granting copies of decision, order, entries or document, before or after registration under section 55;and
(m) Any other matter which in the opinions of the state government is required to be prescribed for the purpose of the act.
(3) Every rule made under this act shall be laid after it is made, before the state legislative assembly, while it is in session, for a total period of ten days, which may be comprised in one session or in two or more successive session, and if, before the expiry of the session in which it is so laid or the successive sessions a foresaid, the Legislative Assembly agrees in making any modification in the rule or agrees that the rules should not be made, the rule shall, there after have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity or anything previously done under that rule.
57. The State Government may be an order in writing, –
(a) exempt any Society or class of Societies from the application of any of the provisions of this Act or the rules made there under; and
(b) direct that any such provisions shall apply to such Society or class of Societies to such extent as may be specified in the order.
58. (1) the Societies Registration Act 1860 (herein after called the ‘said Act’) as in force by virtue of section 88 of the Punjab re-organization act, 1966act no.31of 1966) in the areas added to Himachal Pradesh under section 5 therefore and as applied to the areas which comprised in Himachal Pradesh (application of laws)order .1948 and the Bilaspur (application of laws)order 1949 is hereby repealed in its application to the state of Himachal Pradesh
(2) without prejudice to the previous to the provision contained in Himachal Pradesh general clausesact,1968 with respect to repeal any notification rule ,order requirement , registration certificate, request or things made ,issued, given or done under the said act , shall if in force at the commencement of this act ,continue to be
force & have effect as if made, issued, given or done under the corresponding provisions of this act.
(3) Every Society existing immediately before the commencement of this act which has been registered under the said Act or under any other Act relating to societies in force, shall be deemed to be registered under the corresponding provisions of this Act, and the bye laws of such society shall, in so far they are not inconsistent with the provisions of this Act, or the rules, continue to be force until altered or rescinded.

Download as MS word file: NPVS-HPSRB-2006.doc

Kuldeep C Verma

I am a social worker/activist working with the rural communities of Trans-Giri areas of Sirmour District for for their socio-economic development and empowerment for the last 25 year