Short Answer

Yes, a cooperative society can lease out common land to an external business.

Detailed Explanation

Rule 53 of the Gujarat Cooperative Societies Rules, 1965 allows cooperative societies to lease out common land for commercial purposes. This rule states that the society can lease out any common land for a specified period and for a specific purpose with the approval of the general body meeting. The lease agreement should be in writing and should clearly mention the terms and conditions of the lease.

In practice, this means that if a cooperative society wants to generate revenue by leasing out its common land to an external business for setting up a shop or any other commercial activity, it can do so after obtaining the necessary approval from the general body meeting. The society should ensure that the lease agreement is legally sound and protects the interests of the society and its members.

For example, let's consider a scenario where a cooperative housing society in Gujarat decides to lease out its common garden area to a local cafe for setting up outdoor seating. The society can enter into a lease agreement with the cafe owner after obtaining approval from the general body meeting. The agreement should specify the rent amount, duration of the lease, maintenance responsibilities, and any other relevant terms.

Another scenario could be a cooperative society leasing out its terrace space to a telecommunication company for installing mobile towers. In this case, the society needs to follow the procedures outlined in Rule 53, get approval from the members, and ensure that the lease agreement covers all necessary aspects to protect the interests of the society.

Overall, Rule 53 of the Gujarat Cooperative Societies Rules, 1965 provides the framework for cooperative societies to lease out common land for commercial purposes, subject to the approval of the general body meeting and adherence to legal requirements.

References

• Rule 53 of the Gujarat Cooperative Societies Rules, 1965: Official PDF