Short Answer

Yes, the society can penalize an owner for providing false information about rentals.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the society to take action against members for any false information provided by them. If an owner provides incorrect rental details to the society, it can lead to disciplinary action, including penalties. This provision ensures transparency and accountability within cooperative societies.

Furthermore, Rule 163 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the consequences of providing false information. The rule specifies that members must provide accurate details regarding their tenancy arrangements, and any deviation from the truth can result in penalties or other disciplinary measures.

In practice, if an owner is found to have misrepresented rental information, the society can impose fines, suspend membership rights, or even initiate legal proceedings. This serves as a deterrent against providing false information and maintains the integrity of the cooperative society.

For example, if a member falsely claims that they are not renting out their premises when they actually are, the society can penalize them based on the provisions of the Act and Rules. Similarly, if an owner inflates rental amounts to evade certain obligations, they can face penalties as per the cooperative laws.

In real-world scenarios, this provision ensures that members provide accurate information about their rental activities, preventing any misuse or misrepresentation within the cooperative society. The step-by-step process involves investigating the alleged false information, providing the member with an opportunity to explain, and then imposing penalties if the charges are proven.

Reference

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

• Rule 163 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]