Short Answer

No, a majority of members cannot decide to sell a portion of common property like an open space without following the legal procedures outlined in the Gujarat Cooperative Societies Act, 1961 and Rules.

Detailed Explanation

Section 38 of the Gujarat Cooperative Societies Act, 1961 governs the sale or lease of the immovable property of a cooperative society. According to this section, any sale or lease of common property requires the prior approval of the Registrar. This means that a decision to sell a portion of common property, such as an open space, cannot be made solely by a majority of members but must be sanctioned by the Registrar.

Furthermore, Rule 118 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for seeking approval for the sale or lease of common property. This rule mandates that a society must obtain consent from at least two-thirds of the members present at a general meeting before applying to the Registrar for approval. The Registrar will then assess the proposal and grant permission if it is in the best interest of the society.

In practice, this process ensures that decisions regarding the sale of common property are not arbitrary and protect the interests of all members. For example, if a cooperative housing society wants to sell a portion of its common garden area to a developer for construction, they would need to follow the prescribed procedures under Section 38 and Rule 118. This includes obtaining consent from a significant majority of members and seeking approval from the Registrar.

Another scenario could involve a cooperative society wanting to lease out a common parking area to a commercial establishment for additional income. In this case, the society would have to adhere to the requirements of the Act and Rules, ensuring transparency and fairness in the decision-making process.

Overall, the Gujarat Cooperative Societies Act and Rules establish a framework to safeguard the common property of cooperative societies and prevent unilateral decisions that could adversely affect the members. By following the prescribed procedures, societies can ensure that any sale or lease of common property is conducted in a lawful and transparent manner.

References

• Section 38 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 118 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]