Short Answer

Members are generally not allowed to run holiday rentals like Airbnb from their flats in cooperative societies.

Detailed Explanation

Section 79 of the Gujarat Cooperative Societies Act, 1961 prohibits the use of premises for purposes other than those specified in the by-laws of the society. This means that members cannot engage in commercial activities like running holiday rentals from their flats unless specifically permitted by the society's by-laws. In practice, cooperative societies have the authority to regulate the use of premises to maintain the residential nature of the society and prevent commercial activities that may disturb other members or violate zoning regulations.

Rule 74 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the restrictions on the use of premises in cooperative societies. It empowers the society to take action against members who violate the by-laws related to the use of premises, including running commercial activities like holiday rentals. The society may levy fines, issue warnings, or even take legal action to enforce compliance with the rules.

In real-world scenarios, if a member wishes to run holiday rentals from their flat, they must first check the society's by-laws to see if such activities are allowed. If not explicitly permitted, the member would need to seek approval from the society's governing body and possibly amend the by-laws to accommodate such activities. Failure to comply with the rules may result in penalties or legal consequences.

Practical Examples

• Mr. Patel, a member of a cooperative society, starts renting out his flat on Airbnb without seeking permission from the society. The society issues a notice to Mr. Patel asking him to cease the commercial activity or face penalties as per Rule 74 of the Gujarat Cooperative Societies Rules, 1965.

• Ms. Shah wants to run a homestay business from her flat in the cooperative society. She approaches the society's managing committee to discuss the possibility and is informed that such activities are not allowed as per Section 79 of the Gujarat Cooperative Societies Act, 1961.

• Mr. Desai, a member of a cooperative society, proposes an amendment to the society's by-laws to allow holiday rentals in the society. The proposal is discussed in a general body meeting, and after due process, the by-laws are amended to permit such activities.

References

• Section 79 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 74 of the Gujarat Cooperative Societies Rules, 1965: Official PDF