Section 70: Cooperative Promotion Fund

1) There shall be a Cooperative Promotion Fund in a Cooperative Organisation.

2) For the promotion of cooperative enterprises, zero-point two five percent of the amount allocated after segregating the amount referred to in clause (a) of sub[1]Section (2) of Section 68 in the reserve fund shall annually be deposited in the fund referred to in sub-section (1).

3) The fund referred to in sub-section (1) shall be at the Ministry of Cooperatives and Poverty Alleviation.

4) Operating procedures of the Fund shall be as prescribed.

5) The Ministry may make available the amount as prescribed in proportion to the amount deposited in the fund referred to in sub-section (1).

6) Amount shall be made available as prescribed from the fund referred to in sub[1]Section (1) to the National Federation of Cooperatives; the concerned Central Sectoral Cooperatives Association; Provincial Sectoral Cooperatives Association; Provincial Cooperatives Association; District Sectoral Cooperatives Association; and District Cooperatives Association.

7) For the purpose of distribution of the amount deposited in the Fund referred to in sub-Section (1), there shall be a committee under the convenorship of the Minister of the concerned Ministry and comprising of the co-chair of the National Cooperatives Development Board, Secretary of the Ministry, Joint Secretary of the Ministry of Finance, chair of the National Cooperatives Federation, Chair of the Central Credits and Savings Association and the Registrar as the members.

8) Out of the amount received pursuant to sub-section (6), at least seventy-five percent shall be expended in infrastructure of cooperative business, and the remaining amount shall be expended in activities such as enterprise promotion, education, information, and training, market promotion, and organisation and Association monitoring.

9) The concerned Association shall separately maintain a record of the amount received pursuant to sub-section (6) and get it audited according to the prevailing laws. A statement thereof shall be made public as prescribed.

10) Details as to the expenses incurred and achievements made from the amount received pursuant to sub-section (6) shall be submitted to the National Cooperative Development Board.

11) In case the amount received pursuant to sub-section (6) is found to have been misused or used in other activity, the Registrar or the authority authorised by the Registrar shall recover such amount and prohibit making the amount of the fund available.