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Can members challenge unauthorized adjustments in accounts (like a surprise ledger entry)?

Yes, members can challenge unauthorized adjustments in accounts.

Yes, members can challenge unauthorized adjustments in accounts.

Written By: GatePal Analyst

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Short Answer

Yes, members can challenge unauthorized adjustments in accounts.

Detailed Explanation

Section 80 of the Gujarat Cooperative Societies Act, 1961 empowers members to challenge unauthorized adjustments in accounts. This section states that any member aggrieved by the society's decision can appeal to the Registrar within 60 days of the decision. The Registrar has the authority to investigate the matter and pass necessary orders.

In practice, if a member notices an unauthorized adjustment in their account, they can first raise the issue with the society's management. If the society fails to rectify the error or provide a satisfactory explanation, the member can then file an appeal with the Registrar. The Registrar will conduct an inquiry, hear both parties, and issue appropriate orders to rectify the unauthorized adjustment.

Real-world Scenarios

  • Scenario 1: Mr. Patel, a member of a cooperative society, discovers a surprise ledger entry reducing his share capital without his consent. He raises the issue with the society but receives no satisfactory response. Mr. Patel can then file an appeal under Section 80 to challenge the unauthorized adjustment.

  • Scenario 2: A cooperative society mistakenly adjusts a member's dividend payout to another member's account. The affected member can utilize Section 80 to challenge this unauthorized adjustment and seek redressal.

Reference

  • Section 80 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

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