Short Answer

Yes, the society's books are subject to inspection by government auditors, such as the RCS office.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar or any person authorized by the government to inspect the books of a cooperative society. This means that the government auditors, like those from the RCS office, have the legal authority to examine the society's financial records, accounts, and other relevant documents. The purpose of this inspection is to ensure compliance with the provisions of the Act, proper maintenance of records, and transparency in the society's financial dealings.

In practice, government auditors may conduct routine or surprise inspections of a society's books to verify the accuracy of financial transactions, check for any irregularities or discrepancies, and assess the overall financial health of the society. During the inspection, auditors may review ledgers, cash books, bank statements, vouchers, minutes of meetings, and any other records that are essential for understanding the society's financial position.

Real-world Scenarios

• Scenario 1: The RCS office receives a complaint about financial mismanagement in a cooperative society. In response, government auditors conduct a thorough inspection of the society's books to investigate the allegations and ensure compliance with the Act.

• Scenario 2: As part of a regular audit process, government auditors visit a cooperative society to inspect its books and records to assess the financial stability and transparency of the society.

• Scenario 3: A cooperative society undergoes a merger with another society, prompting government auditors to inspect the books of both societies to verify the financial statements and records before approving the merger.

Reference

• Section 81 of the Gujarat Cooperative Societies Act, 1961: Official PDF