1. The BHEL Employees’ Co-operative Credit Society Limited, No:TG-854, is registered as Cooperative Society under Telangana C-operative Societies Act 1964( Act VII of 1964). Its address shall be office of the BHEL Employees’ Co-operative Credit Society Limited, Ramachandrapuram, Hyderabad-502032. Its area of operation shall be confined to employees of Bharat Heavy Electricals Limited Ramachandrapuram, Hyderabad-32.


2. The objectives of Society shall be:

a) To raise funds by means of issuing shares, borrowing money accepting money on deposits from members at interest or otherwise.

b) To give loans to Members.

c) To invest funds of the Society nor required for object(b)

d) To encourage Thrift, self-help and co-operation among the members.

e) To undertake such other activities as may promote the economic interest of Members and are incidental to attainment of the above objectives.


3. The liability of the Members of the Society shall be limited to share capital subscribes by them.

4. The authorized capital of the Society shall, for the present be Rs.10,00,00,000/- made up to of 1,00,00,000 shares of Rs.10/- each. The value of each share shall be paid in one lump sum on allotment.

5. a) Any employee on the regular rolls of Bharat Heavy Electricals Limited, Ramachandrapuram, Hyderabad-502032 may become a member and continue as such provided that no such person can claim admission as matter of right. No application for admission as a member shall be considered by the Board of Directors unless it is in the prescribed form/ forms as in Appendix-I.

b) Application for admission as member or for allotment of shares shall be made to the President in the form/forms prescribed in Appendix-I or Appendix-II. The board of Directors shall have power to grant or refuse admission after recording reasons to allot or not to allot the shares. Every such application shall be disposed off with in 60days form the date of receipt of application. If no such decision is communicated to such applicant within 60 days from the date of application for membership, then the Society shall be deemed to have admitted such applicant as a Member on the date of expiration of such applicant as a Member on the date of expiration of such period and the Secretary shall give effect to the admission on payment of share capital, etc, as required under Section 24 of the Telangana Co-operative societies Act 1964 and as per Bye-Laws.

c) No member who has been expelled by this Society or by any other Co-operative Society shall be eligible for membership of the society for a period of two years from the date of such expulsion provided that the Registrar may, in special circumstances, sanction the re-admission of any such member within the said period as member of the Society.

d) No person shall be eligible for admission as member of the Society if he is a paid employee of the Society or of its Financing Bank.

f) Any member of the Society shall automatically cease to be a member when he becomes a paid employee of the Society or of its Financing Bank or of any Registered Society for which this Society functions as a Financing Bank.

g) When any member leaves the services under the BHEL R.C PuramHyderabad-32. He/she automatically ceases to be a member of the Society and shall not be eligible for loan, but
he/she clear off any outstanding loan as per the terms of his obtaining the loan. Employees of BHEL who have retired form BHEL services intending to deposit money with the Society can become ’B’ Category member under Section 20 of Telangana state Co-operative Societies Act and shall pay a membership fee of Rs. 10. They shall not be entitled for any Share in any form whatever in the profits or assets of the society including the privileges, rights and liabilities of a Shareholder.

6. a) Every member shall take at least one share but no member shall hold more than 500 shares. Every member shall pay an entrance fee of Rs.100/- at the time of admission as a member.

b) Every share shall be registered in the name of a single holder and shall not be transferable without the special sanction of the Board of Directors.

c) Certificates of title to Shares/Accounts slip shall be issued by the Society singed by the Secretary.(*Amended in 40th AGM, 08-01-2017, Certificates of title to Shares slip shall be issued by the Society singed by the Secretary and counter signed by two members of the Board of Directors)

d) Deleted in 40th AGM dated 08-01-2017 (If any certificate be worn-out. De-faced. Destroyed or lost a new one may be issued in lieu thereof on payment of Re. 1/- and on production to the Board of Directors of evidence satisfactory to them of its being worn-out. De-faced, destroyed or lost or in default of such evidence. On such indemnity being given as the Board of Directors may think sufficient).

7. a) A member may, at any time, after 3 years of his admission, withdraw from membership of the Society by giving one month’s notice in the prescribed form. At the expiry of such notice period, he/she shall ceases to be a member of the Society and shall be entitled to receive from the Society a refund of the share capital which he/she shall have actually paid less any sum for which he/she may be liable to the Society. No member shall be entitled to withdraw from membership if he/she is a surety for an unpaid debt at that time or if his/her liability to the Society exceeds the sums refundable to him.

b) The total amount of share capital which is refundable in respect of all withdrawing members, any one year should not exceed 10% of the total paid-up share capital of the society as it stood on the last day of the preceding year.

c) Subject to sub-clauses (a) and (b), Board of Directors may permit withdrawals by members. The amount payable to the member on withdrawal shall be paid within a period of 60 days from the date of receipt of notice of withdrawal.

8. A member who is transferred from Bharat Heavy Electricals Limited, Hyderabad-502032, to any other unit of BHEL before the end of the co-operative year (ie. April to March) or before the expiry of the full period of his/her fixed deposits or before the loan he/she has obtained is fully repaid, may be permitted by the Board of Directors to continue as a member till the cooperative year is over so as to enable him/her to get the dividend on his share capital or till the ull life of his fixed deposits or repayment period of his loan is over. It is, however, open to such a member to request transfer of his/her membership with all the amounts due by and to him/her to any other Society which may be working the area to which he has been transferred on such conditions as are settled by agreement between the two Societies.

9. I) Any shareholder may nominate any person or persons to receive his/her share or interest in the Society on his/her death should such person or persons survive the said share-holder, such nomination shall, in the event of his/her death, be given effect to by the Board of Directors provided:

a) The nomination was signed in the presence of at least two witnesses attesting to it.

b) The nomination has been Registered in the books of the Society.
c) The person nominated shall have already become a member of the society.
II) In the event of there being no person entitled to succeed under clause (I) of this bye-law to the share or interest of deceased member of the Society, the Society shall pay to such person or persons as may appear to the Board of Directors to be entitled to receive the same as heir or legal representative of the deceased member a sum representing the deceased member’s share or interest at the time of his/her death ascertained in accordance with the bye-laws of the Society. The Society shall thereupon be absolved from all liability in respect of such share or interest on such person/persons executing a deed of indemnity to the society.

10. The sum to be paid by the Society to a member who is transferred or under bye-law 9 in the event of the death of the member shall be the amount paid up on the shares held by the member and dividends accrued thereon upto the date of repayment together with the amount due to him in respect of any deposits and interest there on less the amount if any due by him to the society and shall be paid ordinarily within one month from the date of his ceasing to be a member.

11. I) A past member shall be liable to the extent provided in bye-law 3 for the debts due by the society as they existed on the date when he ceased to be a member, for a period of two years from such date.
II) The state for deceased member shall be liable to the extent provided in bye-law (3) for the debts due by the society as they existed on the date of his death for a period of two years thereafter.

12. No member shall be permitted to transfer his/her share or shares or create a charge in respect of the same in favour of another member or person except with the previous sanction of the Board of Directors.

13. With the sanction of the Board of Directors, a members may at any time increase the number of shares held by him so as to not exceed the limit of shares laid down in bye law No.(6 a).

14. A Member of the Society may be expelled by the General Body under the Following
a) When he is a persistent defaulter
b) When he willfully deceives the Society by false statement
c) When he is Bankrupt or legally disabled
d) When he is criminally convicted, or
e) When he intentionally acts in a manner likely to injure the credit of the society.

In case of expulsion any money paid for the purchase of shares of dividends accrued thereon upto the date of repayment together with the amount due to him in respect of any deposits and interest thereon less sums due to the Society either as loans or as proportionate share of loss of the society as existed at the of his/her expulsion shall be repayable at the society convenience but not later than the expiry of 6 months from the date of such expulsion.

15. The Membership of a person shall cease:
a) On Death
b) As provided in bye-law No.7 & 8 or
c) On expulsion.

16. The Society will Ordinarily obtain funds from the following resources:-
a) Share Capital as provided in byelaw No.4
b) Deposits from Members.
1) Deposits may at the discretion of the Board of directors be received at any time from Members
2) There shall be the following classes of deposits:
3) Fixed Deposits
4) Any other type of deposits as decided by the board of Directors from time to time.

NOTE: The detailed subsidiary regulations governing several types of deposits shall be framed by the board of directors with the prior approval of register of Co-operative Societies.
c) Borrowings at the discretion of Board of Directors from Central/State Governments or
T.S.S.C. Bank Ltd.,
Hyderabad or Medak Dist. Co-op. Central Bank Ltd., Sangareddy or any scheduled bank. Such Borrowings shall be resorted to only when the funds realized by way of deposits are found insufficient.
d) Subsidies, grants, contributions, donations etc., specially approved by the board of directors.
e) Thrift deposits from members as provided in bye-law No.17.
f) Loans shall be granted for purchase of articles/vehicle under consumer durable scheme as and when it is possible for society to provide/arrange through financiers such loans the loan amount rate of interest and installments will be fixed by the board of directors after framing the rules and regulations.

17. a) Every Member of the society shall subscribe to compulsory monthly thrift Deposit so long he continues to member of the society at Rs. 1000/- per month.(*Amended in 38th AGM, 28-09-2014,thrift was Rs.500/- per month)
b) It shall be open to a member to deposits monthly any sum in excess of the scale shown in (a) above.
d) No Member can withdraw his subscriptions except at the time of his leaving the BHEL Service or except when he ceases to be a Member of the Society.
d) If a member who is a subscriber to this deposit ceases his membership of the Society under bye-law No.7 prior to leaving his/her service with the BHEL and seeks re-admission as a member he shall be admitted only on repayment to the society of the total minimum subscription which he withdrew at the time of his resignation from a membership.

18. The total borrowing of the society both by way of deposits or otherwise shall not, at any time, exceed twenty(20) times the paid-up share capital PLUS the reserve fund.(*Amended in 38th AGM,28-09-2014, was exceeded ten(10) times the paid-up share capital PLUS the reserve fund)

19. Subject to such resolution as the General Body may from time to time pass the over-all management and policy making of the society shall rest in Board of Directors. The Board of Directors shall consist of not more than 9 (nine) members of whom one Sr. Officer from finance and accounts Department shall be the Ex-Officio President and one Sr.Officer from each of Personnel and Civil Engineering Depts. Shall be two Ex-Officio Directors of the society and the remaining 6 (six) members of the Board of Directors shall be elected by the General Body by secret ballot, one of them as Vice-President of the Board and other 5(five) as Directors, all for a period of Five Co-operative years each.

Note:1. It shall be competent to General Body to remove any elected member of the Board at any time and elect successor for the unexpired period of his tenure of office.
2. Any elected Member of the Board may, at any time resign from his office by sending a letter of resignation to the Secretary of the society but such resignation shall take effect only from the date on which it is accepted by the Board.
3. The proceedings of the committee shall not be invalidated on account of any vacancy or vacancies of the Board remaining unfilled.


20. a) Shall have a General control over all the affairs of the society and shall keep in touch with the day to day administration of the society.
b) He shall preside over the meetings of the Board of Directors and meetings of the General Body.


21. Shall preside over the meetings of the Board of Directors and meetings of the General Body in the absence of the president.

22. There shall be a whole time secretary of the society who will be responsible for the executive management of the day-to-day affairs of the society and shall also be the convener of meetings of the Board of Directors. He shall not have a voting right in such meetings but shall attend the meetings and assist the Board in all matters as required. A suitable officer of the Accounts Department of Bharat Heavy Electricals Limited, Ramachandrapuram, on deputation, would act as Secretary to the society. The conditions at deputation of such an officer shall be decided by the Board of Directors in consultation with the management of Bharat Heavy Electricals Limited.


23. a) The secretary shall be responsible for the executive administration of the society.
b) The secretary shall be the officer to sue or be sued on behalf of the society and all Bonds in
favor of the society shall be in the name of the secretary.
c) The duties of the secretary intra alia would include, the following:
1. To maintain such accounts and registers as are envisaged under Rule 59 of the Telangana CoOperative societies Rules 1964.
2. To place before the General Body the Registrar’s notes of the audits or inspection within one month from the date of receipt.
3.To correspond with the Registrar.
4.To issue receipts for all moneys paid to the society; and
5. To do all other business relating to the society.
NOTE : In the case of borrowings from other societies, receipt or bond shall be executed by President / Vice President and Secretary.

24. The Secretary shall send notices of meetings along with the agenda to the Members of the General Body or the Board of Directors. The notices shall be sent to the members at least 15 (fifteen ) days before the meeting in the case of Board of Director’s meetings. All notices for meetings shall be deemed proper if sent to the address given by the Members. The non-receipt of such notices by any member shall not, however, invalidate the proceedings of the meetings.

25. The Board of Directors shall meet once in a month or often if necessary to conduct the affairs of the society. The quorum for the meeting shall be 5(five) All questions before the Board of Directors shall be decided by a majority of votes. Should there be an equality of votes, the President or other presiding member shall have a casting vote. No member of the Board of Directors shall be present at a meeting of the Board of Directors shall be present at a meeting of the Board when any matter in which he is personally directly or indirectly interested is being discussed. In case of urgency where there may from time to time be prescribed by the Board of Directors. The Secretary may obtain the decision of the Board of Directors by circulation of papers among all the members. Such decision arrived at by circulation shall be placed before the next meeting of the Board of Directors for their information.

26. Where a member of the Board of Directors absents himself from there consecutive meetings of the Board, he shall cease to be a member of the Board. He may, however, be rein-stated by the Board in the member prescribed out such reinstatement shall not be made more than once during the term of the Board.

27. Any member of the Board of Directors who commits default in respect of a loan taken by him from the society would IPSO FACTO be disqualified to continue as a director and under no circumstances shall the defaulter continue to hold office as a member of the Board of Directors.

28. The Board of Directors shall have power to prescribe from time to time the strength of office establishment and the scale of pay for every employee of the society and to incur such expenditure as may be necessary for the management of the society subject to the budget allotment sanctioned by the general body for each year. The Board of Directors will formulate rules governing the service conditions of the employees of the society in respect of leave provident fund, etc which will come into force after approval by the Registrar.

29. No person shall be appointed as a paid officer or servant in any category of service in the society without obtaining from him/her security in such form and according to such standard as the board of directors may fix for such category of service in the society.

30. The Board of Directors may frame subsidiary regulations for the conduct of the business of the society consistent with the act., the rules under the act and these bye-laws. Such subsidiary regulations are to be entered in the minute book of the society and they shall be reported to the Registrar.

31. The services of the members of the Board of Directors shall be gratuitous.

32. The ultimate authority of the society shall vest in the General Body of its members. The General Body shall not, however interfere In the action of the Board of Directors in exercise of the powers conferred on them by the bye-laws. The following, among other matters, shall be dealt with by the General Body.
1. The election and removal of the Board of Directors.
2. The Annual Report due to the Registrar of Co-operative societies.
3. The Audit Report.
4. The amendment or repeal of any existing bye-law or the enactment of a new bye-law
5. The expulsion of a member
6. The approval of the Annual Budget of income and expenditure.
7. Disposal of the net profits.
8. Election of delegates to the financing banks or other societies; and
9. Any other business which, under the bye-laws has to be transacted in a General Body meeting.

33.  A General Body Meeting of the society shall be held once in every year at such time and place as may be prescribed by the committee of management. Such meetings shall be called ordinary meetings and all other meetings shall be called extraordinary meetings. The Board of Directors shall call for a General Body meeting within 30 (Thirty) days of the date of requisition in writing
from 1/10 (one tenth) or half of the total number of members on the list at that time whichever is less or at the instance of the Registrar or the financing bank to which the society is indebted.

34. The Board of Directors shall maintain a list of members on the rolls of the society who are qualified to vote at General Body meetings and shall bring such list up to date within a fortnight before such meeting of the General Body. It shall be the duty of secretary to supply a copy of such list to any member desiring to have it on payment.

35. It shall be the duty of every member to attend the meetings of the General Body. The quorum for any General Body meeting shall be 1/10th (one tenth) or half of the total number of members on the list at the time whichever is less.

36. If within half an hour after the time appointed for holding of a General Body meeting a quorum be not present, the meeting, if convened on the requisition of share-holders or of delegates, shall be dissolved and in every other case, it shall stand adjourned to the same day in the next week at the same time and place as fixed for the original meeting within half an hour after the time of holding the meeting, those delegates who are present and entitled to vote shall be a quorum and may transact the business for which the meeting was called.

37. The President, if present, or Vice president in his absence, shall preside at the meeting of the general body. If at any General Body Meeting, the President or Vice president be not present within 15 (fifteen) minutes after the time appointed for holding the meeting, the members present shall elect one from amongst themselves to be the chairman of the meeting.

38. Each member shall have only one vote. All questions except amendment to bye-laws shall be decided by a majority of votes which shall normally be indicated by show of hands unless whether before or after the declaration of the results of show of hands a member demands a ballot in which case, the ballot shall be forthwith taken. When votes are equal, the Chairman of the meeting shall have the casting vote.

39. Minutes shall be made in books provided for the purpose of all resolutions and proceedings at General Body Meeting.

40. A Member proposing any resolution including that envisaging amendment to any bye-law shall give notice in writing with particulars thereof to the secretary at least 15 (fifteen) days prior to the announced date of the General Body Meeting. The Secretary shall circulate such proposals to the members at least 10 (days) prior to the meeting of the General Body. Any resolution
seeking to amend the bye-law shall be demand to have been passed only if at least 2/3 (twothirds) of the members present vote subject to its ratification by the Registrar.


41. Loans shall be granted only to members. No member can, however, claim a loan as a matter to right. Normally, loans will be sanctioned in the order in which the applications for loans are registered. The Board of Directors shall prescribe the conditions and procedure for sanctioning loans and amend them as need be from time to time.

42. All applications for loans in the form prescribed in Appendix-III shall be made to the Secretary who shall arrange for their proper registration and disposal. Every application for loan shall be accompanied by a true statement of the applicant’s indebtedness to other parties.

43. Should the Board of Directors be of opinion that a loan granted by the society has been misapplied, it shall at once take steps to recover the loan with interest without waiting for the expiry of the period for which it was granted.

44. a) A Member’s indebtedness to the society by way of principal of the loan shall not exceed
Rs.13,00,000/- (*Amended in 40th AGM,08-01-2017, loan shall not exceed Rs.12,00,000/-)
b) Deleted in AGM 28-09-2014
c) Loans with interest shall be repayable in equal monthly installments and shall be fully repaid within a maximum of 120 (One Hundred twenty) months. The Board of Directors shall frame the necessary rules for granting and recovery of loans including the conditions for granting extension time of repayment subject to this overall limit. (*Amended in 38th AGM,28-09-2014,Maximum monthly installments 84 months)
d) Loan for House Building Advance shall be granted only to members when the finance position of the society improves to sanction such loans. The loan amount rate of interest and installments will be fixed by the Board of Directors after framing the rules and regulations.

45. Interest on all loans granted by the society shall be charged at rates fixed by the Board of Directors.

46.A borrower may pay off the whole or the balance of the loan due with interest thereon to date of payment at any time during the tenure of the loan.

47. Loan may be granted to a member on the security of Fixed Deposit at his credit. Such loan shall not exceed 75% (seventy five percent) of the amount of the individual deposit, and shall not be subject to any of the stipulations to the contrary laid down in bye law No.44.

48. All loans granted by the society other than those on the security of a member’s fixed deposit shall be secured by the joint and several responsibility of the borrower and of two other members standing sureties for him. The total amount for which a member can stand surety shall not exceed forty times his salary. Being reckoned as basic pay + dearness allowances. (*Amended in 40th AGM,08-01-2017, The total amount for which a member can stand surety shall not exceed twenty times his salary)

49. When a borrower is absent from duty for more than 15 (fifteen) days in a month and no pay or leave salary is payable to him during that period, no recovery of the loan may be made for the month. The extension of the loan repayment on this account shall, however, be granted only on a specific application from the member who shall also forward the consent of the sureties in case of surety loans. The number of times such extension can be granted to a borrower shall be limited to two occasions for any particular loan.

50. When a person who has stood as surety for a loan dies or ceases to be in the service of BHEL or becomes in the opinion of the Board of Directors unfit to be a surety, the surety within 15 (fifteen) days. If the borrower fails to find another approved surety when so required, the Board of Directors may require the loan to be repaid immediately with interest up to the date of repayment.

51. When a member from whom money is due pays any sum to the society; it shall be appropriated in the following order. Firstly to fees, fine, postal registration and other miscellaneous charges due by him. Secondly to interest due by him; and Thirdly to Principal.

52. The society shall have a charge upon the paid up share capital, deposit and any other money to the credit of a member or a past or deceased member in respect of any debt to the society from such member or past member of the estate of such deceased member and the society may set off any sum credited or payable to member or past or deceased member or the estate of a deceased member in or towards payment of any such dept.

53. If a member becomes ineligible for membership at any time and consequently his name is to be removed from the list of members, the loan account of such member shall be closed without reference to the term for which the loan has been granted and action taken to recover the amount outstanding against him including interest up to the date of closing the loan amount.


54. The net profit of the society after approval by the Registrar every year shall be disposed off as shown below :
a) Not less than 10% (ten percent) of the net profit shall be carried to the Reserve fund.
b) Bad debts Reserve 2.5% of net profit as per 45(1)C, Rule 36(2) d.
c) 1% of net profits shall be credited to cooperative educational fund and 30% in it will be paid to T.S. State Co-operative union towards Co-operative Education Fund.
d) Dividend subject to a minimum of 15% if net profit per annum and pay an amount not being less than 15% of the net profit towards rebate to members on the paid up share capital that as so held during the year. The balance of net profit after declaration of dividend and rebate shall be transferred from profit to the following funds:-
e) A sum not exceeding 45% of the net profit may be carried to a Dividend equalization fund to be available for distribution in any subsequent year.
f) 10% of the balance of net profit may be carried to Common Good Fund.
g) 45% of the balance of net profit shall be carried to a “welfare fund” to be utilized for the general benefit of the members as decided by the Board of Directors of the Society from time to time.


55. a) The Reserve Fund belongs to the society as a whole and it is intended to meet unforeseen losses and not to be drawn up on except with the Registrar’s sanction. No member can claim a share in it. It shall be invested in such a manner as the Registrar of Co-Op. Societies may prescribe or in one or more ways indicated in Sec.46 of T.S.Co-Op. Societies Act. 1964. However, the same can be utilized to the society’s working capital subject to approval by General Body and Acceptance by Registrar of Co-op societies.


56. Accounts and Records shall be maintained in the forms prescribed by the Registrar with such additions as the Board of Directors think necessary. The accounts of the society shall be audited by the Registrar or by some person authorized by him at least once in every year.

57. Within fifteen days after the close of the co-operative year ending March 31st, the society shall prepare:-
I) A statement showing the receipts and disbursements during the past year;
II) A statement showing the assets and liabilities as they stood on the last day of such year; and
III) A statement showing the profit and loss for the year;
These three statements shall be submitted to the Registrar without delay after the Registrar has verified these three statements and granted his audit certificates the society shall publish the statement in a manner approved by the Registrar.


58. The society shall prepare a list of its members with their addresses on the last day of each cooperative year and furnish a copy of the same Registrar within one month from the close of such year. The list shall be kept open at the office of the society during office hours for inspection by any member of the society and it shall be the duty of the secretary to supply copies of the list to such of the members who desire to have them on payment of such fees as may be prescribed by the Board of Directors in the behalf.

59. In the case of dispute touching the business of the society between members or past members of the society or persons claiming through a member or persons so claiming and the Board of Directors. A reference in writing may be made by any party to the Registrar. The Registrar shall have power on receipt of such reference either to decide the dispute himself or refer it to an arbitrator appointed by him or to several arbitrators of whom one shall be appointed by him and one other by each of the parties to the dispute. The decision or award of the Registrar or the arbitrator or arbitrators as the case may be shall be final and it may be enforced in either of  the following ways :-
a) By an application made to the collector of the District through the Registrar of Co-operative societies requesting that the amount due under the decision or award may be recovered in the same manner as arrears of land revenue.
b) By an application to the Civil Court having jurisdiction over the subject matter of the decision or award requesting that the court may enforce the decision or award as if it were a decree of the court.

60. Should any sum belonging to the society be either stolen or otherwise lost and found irrevocable it shall be open to the General Body to write-off such amounts obtaining the sanction of the Registrar.

61. The society shall follow the Telangana Co-operative Societies act 1964 and rules as amended from time to time and the circular and instructions issued by the Registrar from time to time.