Short Answer

No, a member cannot refuse to pay maintenance if the society fails to produce audited accounts.

Detailed Explanation

Section 75 of the Gujarat Cooperative Societies Act, 1961 states that every cooperative society shall maintain proper accounts and prepare an annual statement of accounts. Rule 97 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the audit of the society's accounts. These provisions make it mandatory for cooperative societies to maintain and audit their accounts regularly.

In practice, if a society fails to produce audited accounts, it does not absolve the members from their obligation to pay maintenance charges. The non-production of audited accounts may indicate mismanagement or non-compliance by the society, but it does not give individual members the right to withhold maintenance payments. Members are still bound by the bylaws and regulations of the society, which typically outline the payment obligations.

Real-world Scenarios

• Scenario 1: A cooperative housing society fails to present audited accounts at the annual general body meeting. Some members express concerns about transparency and accountability. However, all members are still required to pay maintenance charges as per the bylaws.

• Scenario 2: A member decides to withhold maintenance payments due to the society's failure to produce audited accounts. The society issues a notice reminding the member of their payment obligations, citing the relevant provisions of the Act and Rules.

Step-by-step process:

• The society is obligated to maintain proper accounts throughout the financial year.

• An auditor appointed by the society conducts an audit of the accounts.

• The audited accounts are presented to the general body meeting for approval.

• In case of non-compliance, the Registrar of Cooperative Societies may take action against the society.

Reference

• Section 75 of the Gujarat Cooperative Societies Act, 1961

• Rule 97 of the Gujarat Cooperative Societies Rules, 1965