Short Answer

Yes, members can request the Registrar to conduct a special audit if they suspect fraud.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 empowers the members of a cooperative society to request the Registrar to conduct a special audit if they suspect fraud or irregularities in the society's financial transactions. This provision ensures transparency and accountability within the cooperative society by allowing members to take proactive measures in case of suspected malpractices.

In practice, if the members of a cooperative society have reasonable grounds to believe that fraud or irregularities are taking place, they can submit a written request to the Registrar detailing their concerns. The Registrar will then assess the request and may order a special audit to be conducted by a qualified auditor to investigate the alleged fraud or irregularities.

Real-world Scenarios

• Scenario 1: Members of a cooperative housing society notice discrepancies in the financial statements and suspect embezzlement by the management committee. They can collectively request the Registrar to conduct a special audit to investigate the matter thoroughly.

• Scenario 2: A group of farmers in a cooperative agricultural society raise concerns about mismanagement of funds by the society's officials. They decide to request a special audit by the Registrar to uncover any fraudulent activities.

Step-by-step process:

• Members identify suspicious financial activities within the cooperative society.

• Members draft a written request to the Registrar outlining their suspicions and reasons for requesting a special audit.

• The Registrar reviews the request and decides whether to initiate a special audit based on the merit of the allegations.

References

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