Short Answer

No, the society cannot use the maintenance fund to buy gifts or cover expenses for elections.

Detailed Explanation

Rule 94 of the Gujarat Cooperative Societies Rules, 1965 prohibits the use of maintenance fund for any purpose other than maintenance expenses. This means that funds collected for maintenance activities cannot be diverted towards election-related expenses. The maintenance fund is specifically designated for the upkeep and repair of the society's premises and facilities, and using it for election purposes would be a violation of the rules.

Additionally, Section 73 of the Gujarat Cooperative Societies Act, 1961 mandates that the society's funds should be utilized only for the purposes specified in the Act and Rules. Any deviation from this requirement can lead to legal consequences and may be considered as misappropriation of funds. Therefore, it is important for the society to adhere to the prescribed guidelines regarding the utilization of different funds.

In practice, using maintenance funds for election-related expenses can raise questions of transparency and accountability within the society. It may also lead to disputes among members regarding the proper allocation of funds and the society's financial management. To avoid such issues, it is crucial for the society to follow the legal provisions and ensure that funds are used appropriately as per the designated purposes.

Practical Examples

• Scenario 1: A cooperative housing society decides to use the maintenance fund to purchase gifts for the election candidates. This action goes against Rule 94 of the Gujarat Cooperative Societies Rules, 1965, which prohibits such utilization of maintenance funds.

• Scenario 2: During the society elections, the managing committee plans to cover refreshment expenses using the maintenance fund. However, Section 73 of the Gujarat Cooperative Societies Act, 1961 restricts the usage of society funds for purposes other than those specified in the Act and Rules.

References

• Rule 94 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

• Section 73 of the Gujarat Cooperative Societies Act, 1961: Official PDF