Short Answer

Yes, a cooperative society can sell scrap or old equipment, and it must be recorded properly.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 allows cooperative societies to sell any property, movable or immovable, including scrap or old equipment. The sale of scrap or old equipment must be recorded in the society's books of accounts as per Rule 94 of the Gujarat Cooperative Societies Rules, 1965. This rule mandates that all transactions, including the sale of scrap or old equipment, must be properly documented with details such as the date of sale, buyer's name, quantity sold, price received, and any other relevant information.

In practice, before selling scrap or old equipment, the society should conduct a valuation to determine the fair market value. The sale should be conducted through a transparent process, such as inviting bids or conducting an auction, to ensure the best price is obtained for the society. The proceeds from the sale should be deposited into the society's bank account, and proper receipts should be issued to the buyer.

Real-world Scenarios

• Scenario 1: A cooperative society decides to sell old office furniture that is no longer in use. They conduct a valuation and advertise the sale to interested members. The furniture is sold through a bidding process, and the details of the sale are recorded in the society's accounts as per Rule 94.

• Scenario 2: A society has accumulated scrap material from maintenance work. They sell the scrap to a local vendor after obtaining competitive quotes. The sale details, including the quantity sold and price received, are recorded in the society's records.

Reference

• Section 73 of the Gujarat Cooperative Societies Act, 1961

• Rule 94 of the Gujarat Cooperative Societies Rules, 1965