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What is the status of defunct societies?

1. Meaning of a Defunct Society

  • A defunct society is one that has ceased to carry out its objectives or operations over a continuous period.
  • It may have stopped holding meetings, maintaining accounts, or engaging with members.
  • Such societies often fail to comply with mandatory statutory filings or administrative requirements.
  • The term is not always legally defined but is recognized based on functional inactivity.
  • A society may become defunct voluntarily or due to neglect.

2. Registrar’s Power to Identify and Act

  • The Registrar of Societies has the authority to examine whether a society is active.
  • If no annual reports, audited accounts, or member records are submitted, the Registrar may issue a notice.
  • In some states, the Registrar may strike off the society from the register after inquiry.
  • The society may be marked as “dormant” or “non-compliant” in official records.
  • Failure to respond to such notices can result in automatic cancellation of registration.

3. Consequences of Being Defunct

  • A defunct society loses legal recognition and cannot operate as a registered body.
  • It cannot hold property, enter contracts, or receive donations or grants in its name.
  • Its bank accounts may be frozen or closed upon notification from the authorities.
  • It becomes ineligible for tax exemptions or government affiliations.
  • Members or office bearers may face legal consequences for misuse during the inactive period.

4. Revival or Restoration Options

  • Some states allow for revival of a defunct society by applying to the Registrar with proper justification.
  • The society must provide updated records, meeting resolutions, audit reports, and compliance filings.
  • An affidavit and explanation for the inactivity period are usually required.
  • Revival is permitted only if the society’s original purpose is still valid and legal.
  • If not revived in time, the society must be re-registered as a new entity.

5. Preventive Measures for Active Status

  • Societies must conduct Annual General Meetings, update their membership records, and maintain books of accounts.
  • Filing of annual statements, changes in office bearers, and activity reports with the Registrar is essential.
  • Even if activities are minimal, symbolic or administrative action should be recorded and reported.
  • Regular audits, meeting resolutions, and internal documentation help prove activity.

Compliance ensures that the society retains its legal status and funding eligibility.

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