Short Answer

Yes, a society can collect security deposits from members for utilities, and they can be refunded.

Detailed Explanation

Section 30 of the Gujarat Cooperative Societies Act, 1961 allows cooperative societies to collect security deposits from their members. This section empowers societies to collect such deposits for various purposes, including utilities. The security deposit serves as a form of guarantee for the society in case of non-payment or damages related to utilities.

In practice, societies often collect security deposits from members when they provide utility services such as water, electricity, or maintenance. These deposits act as a security measure to ensure timely payments and cover any potential damages caused by the member.

Real-world Scenarios

• Scenario 1: A cooperative housing society collects a security deposit from each member for water supply. This deposit is used to cover any repair or maintenance costs related to the water supply system.

• Scenario 2: A cooperative society charges a security deposit from members for electricity usage. This deposit is refunded to the member upon termination of membership, subject to any outstanding dues.

Step-by-step process:

• The society notifies members about the requirement of a security deposit for utilities.

• Members pay the security deposit as per the society's guidelines.

• The society maintains records of the security deposits collected from each member.

• Upon termination of membership or when the utility service is discontinued, the society refunds the security deposit to the member after deducting any outstanding dues.

Reference

• Section 30 of the Gujarat Cooperative Societies Act, 1961: Official PDF