Short Answer

Yes, a cooperative society can fine its members for violations of usage, such as running an illegal paying guest (PG) accommodation.

Detailed Explanation

Section 123 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to impose fines on their members for any breach of the society's by-laws or rules. This means that if a member is found violating the society's rules regarding the usage of premises, such as running an illegal PG accommodation, the society can levy fines on the member as a penalty.

Furthermore, Rule 86 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for imposing fines on members. The rule outlines the process of issuing a notice to the member informing them of the violation, conducting a hearing if requested by the member, and imposing the fine after due consideration.

In practice, if a cooperative society discovers that one of its members is running an illegal PG accommodation in violation of the society's rules, the society can initiate disciplinary proceedings against the member. This may involve issuing a show-cause notice, conducting a hearing, and ultimately imposing a fine as per the by-laws of the society.

For example, if a society's by-laws clearly state that commercial activities like running a PG accommodation are not allowed in residential premises, and a member is found to be violating this rule, the society can take action by imposing a fine on the member. The member will have the opportunity to present their case during a hearing before the fine is imposed.

In another scenario, if a member continues to operate an illegal PG accommodation despite repeated warnings from the society, the society may escalate the matter by imposing higher fines or even taking legal action to ensure compliance with the usage rules.

Overall, cooperative societies have the authority to fine members for violations of usage, such as running illegal PG accommodations, to maintain discipline and uphold the rules and regulations of the society.

References

• Section 123 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 86 of the Gujarat Cooperative Societies Rules, 1965: Official PDF