Short Answer

Yes, the Registrar or court can appoint an administrator to run the society in case of total mismanagement.

Detailed Explanation

Section 74 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to appoint an administrator for a cooperative society if there is mismanagement. This section allows the Registrar to take over the management of the society to ensure its proper functioning and protect the interests of the members. The administrator appointed by the Registrar will have the authority to carry out the day-to-day operations of the society until the situation is rectified.

Furthermore, Rule 86 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for the appointment of an administrator. The rule outlines the process for the Registrar to follow when appointing an administrator, including issuing a notice to the society and conducting an inquiry into the alleged mismanagement. The administrator appointed under this rule will have the responsibility to investigate the issues, take necessary actions, and report back to the Registrar.

In practice, if a cooperative society is facing severe mismanagement such as financial irregularities, fraud, or failure to conduct elections, the Registrar or court can intervene by appointing an administrator. This administrator will work towards restoring order, conducting audits, ensuring compliance with laws, and ultimately improving the functioning of the society.

Real-world Scenarios

• Scenario 1: A cooperative housing society is facing financial mismanagement due to embezzlement by the management committee. The Registrar appoints an administrator to take control of the society's finances, conduct audits, and bring transparency to the operations.

• Scenario 2: A cooperative credit society is unable to conduct elections for the new management committee due to internal conflicts. The court appoints an administrator to oversee the election process, ensure fair participation, and maintain the society's governance structure.

• Scenario 3: A cooperative agricultural society is involved in illegal land transactions leading to disputes among members. The Registrar steps in and appoints an administrator to investigate the transactions, resolve disputes, and restore peace within the society.

References

• Section 74 of the Gujarat Cooperative Societies Act, 1961: Official PDF

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