Short Answer

A society can amortize a big repair over multiple years as per the Gujarat Cooperative Societies Act, 1961 and Rules, 1965.

Detailed Explanation

Section 66 of the Gujarat Cooperative Societies Act, 1961 allows a cooperative society to undertake repairs, renovations, or reconstruction of its building. The society can raise funds for such repairs through contributions from its members or by borrowing money. This section empowers the society to manage its finances efficiently to meet the repair expenses. By spreading the cost over multiple years, the society can reduce the financial burden on its members.

Rule 76 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the maintenance fund of the society. It states that the society should maintain a separate fund for repairs and maintenance. This fund can be utilized for major repairs or renovations required in the society's building. By planning and allocating funds to this maintenance fund regularly, the society can ensure it has sufficient resources to cover big repairs over multiple years.

In practice, societies often face the need for significant repairs or maintenance work on their buildings. By following the provisions of the Act and Rules, societies can plan and execute these repairs systematically. For example, if a society's building requires a major overhaul of the plumbing system, the society can collect funds from members over a few years to cover the expenses gradually.

Another scenario could be a society needing to repair the roof of its building, which involves substantial costs. In such cases, the society can decide to amortize the repair cost over a period of time, ensuring financial sustainability and equitable distribution of the financial burden among its members.

In conclusion, the Gujarat Cooperative Societies Act, 1961 and Rules, 1965 allow cooperative societies to amortize big repairs over multiple years, providing a practical and sustainable approach to managing maintenance and utility disputes within the society.

References

• Section 66 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 76 of the Gujarat Cooperative Societies Rules, 1965: Official PDF