Short Answer

No, committee members are generally not allowed to take loans from the society.

Detailed Explanation

As per Section 73 of the Gujarat Cooperative Societies Act, 1961, committee members are prohibited from obtaining loans from the society. This provision aims to prevent conflicts of interest, misuse of funds, and maintain transparency within the cooperative society. In practice, this rule ensures that committee members do not misuse their position for personal gain or advantage over other members.

In real-world scenarios, if a committee member requires financial assistance, they should seek loans from external sources or financial institutions to avoid any potential conflicts of interest. This restriction helps uphold the principles of good governance and ethical conduct within cooperative societies.

For example, if a committee member faces a financial crisis and requests a loan from the society, it could lead to allegations of favoritism or misuse of authority. By adhering to this rule, the society can maintain fairness and integrity in its operations.

Another practical scenario could involve a committee member attempting to influence the decision-making process to approve a loan for themselves, which would be a clear violation of the Act. By strictly enforcing this provision, cooperative societies can safeguard their financial resources and maintain trust among members.

Reference

• Section 73 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]