Short Answer

Yes, a member can demand punishment or disciplinary action if the managing committee members knowingly violate the law or misuse their authority.

Under Section 81, Section 93, and Section 148 of the Gujarat Cooperative Societies Act, 1961, the Registrar of Cooperative Societies has the power to suspend, disqualify, or prosecute committee members found guilty of willful misconduct, corruption, or breach of trust.

Detailed Explanation

The Gujarat Cooperative Societies Act, 1961 ensures that managing committee members are held accountable for their actions. If any committee member knowingly breaks the law, manipulates records, misuses society funds, or acts against the interest of members, legal remedies are available to affected members through the Registrar, Cooperative Court, or even criminal courts.

• Legal Provisions for Action Against Committee Members:

(a) Section 81 – Suspension or Dissolution of Committee:

If the Registrar finds that the managing committee:

Is guilty of persistent default,

Neglects its duties, or

Acts contrary to the Act, Rules, or by-laws,

then the Registrar can suspend or dissolve the committee and appoint an administrator to run the society temporarily.

(b) Section 93 – Inquiry into Misconduct or Misappropriation:

Any society member can submit a written complaint to the Registrar alleging fraud, fund misuse, or illegal activity.

If the Registrar’s inquiry proves misconduct, the following actions can be taken:

Recovery of losses from the guilty members,

Disqualification of committee members from holding office for a specific period,

Prosecution under criminal law if fraud is established.

(c) Section 148 – Penalties for Willful Violations:

This section prescribes fines and imprisonment for committee members who knowingly break the law. Offences include:

Falsifying records,

Withholding information from auditors or the Registrar,

Obstructing legal inquiries, or

Breach of trust or misuse of society funds.

Depending on the severity, punishment can include fines up to ₹10,000 or imprisonment up to six months.

• How Members Can Take Action:

Step-by-Step Process:

Collect Evidence:

Gather documents, minutes, financial records, or audit reports showing the violation.

File Written Complaint:

Submit a complaint to the Registrar of Cooperative Societies detailing the misconduct under Sections 81 or 93.

Registrar’s Inquiry:

The Registrar conducts an official inquiry or inspection of the society’s records.

Action Taken:

If misconduct is proven, the Registrar may suspend or dissolve the committee, recover losses, and initiate prosecution.

Criminal Complaint (if applicable):

For fraud or misappropriation, members can also file an FIR under IPC Sections 406 or 409 (criminal breach of trust).

• Examples of Punishable Misconduct:

Knowingly approving illegal contracts without member consent.

Misusing reserve or sinking funds for personal benefit.

Tampering with election or membership records.

Refusing to share audit reports or hiding financial data.

Accepting bribes or commissions in redevelopment deals.

Real-world Scenarios

Scenario 1: In Ahmedabad, a society’s secretary falsified payment vouchers to hide ₹3 lakh in misuse. The Registrar dissolved the committee and barred the secretary from holding office for five years.

Scenario 2: A Surat housing society’s chairman approved illegal construction on common land. Members complained, and under Section 81, the Registrar removed the entire committee and appointed an administrator.

Scenario 3: In Vadodara, members proved that the treasurer diverted society funds. The Registrar ordered recovery and initiated criminal prosecution under Section 148.

References

Section 81 – Suspension or Dissolution of Committee, Gujarat Cooperative Societies Act, 1961: Official PDF

Section 93 – Inquiry into Misconduct or Misappropriation: Official PDF

Section 148 – Penalties and Offences under the Act: Official PDF

Indian Penal Code, Sections 406 & 409 – Criminal Breach of Trust.