Union Territories & Panchayats
(1) A co-operative board cannot be superseded/suspended for more than six months (one year for non-multi-State banking co-operatives), except for persistent default, negligence, acts against the society's interests, governance stalemate, or election failure - and never where there's no government shareholding, loan, financial assistance, or guarantee involved. Banking co-operatives are also subject to the Banking Regulation Act, 1949. (2)-(3) A superseding administrator must arrange elections within the specified period and hand over to the newly elected board; state law governs the administrator's service conditions.
This limits how long a state government can keep a co-operative society under externally-imposed "supersession" (replacing the elected board with a government-appointed administrator) - protecting co-operatives from indefinite government takeover, while still allowing genuine intervention for serious governance failures or where the government has a real financial stake.
This provision was specifically designed to stop the historical practice in some states of governments superseding inconvenient co-operative boards (for example, ones controlled by a rival political faction) and never restoring elected control - a maximum supersession period was meant to force timely elections.