Short Answer

You can file a police FIR for society fraud, in addition to handling it through cooperative law.

Detailed Explanation

Section 91 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to inquire into the affairs of a society and take necessary actions. This includes investigating fraud or misconduct within the society. However, if the fraud involves criminal activities, such as misappropriation of funds or embezzlement, it is advisable to file a police FIR under the Indian Penal Code (IPC) as well.

Rule 134 of the Gujarat Cooperative Societies Rules, 1965 outlines the procedure for filing a complaint with the Registrar regarding any fraudulent activities in the society. The Registrar can then conduct an inquiry and take appropriate actions as per the provisions of the Act and Rules. While the cooperative law provides remedies and penalties for such offenses, criminal actions like fraud may warrant police intervention for a thorough investigation and legal action.

In real-world scenarios, if there is evidence of significant fraud or criminal activities within a cooperative society, it is prudent to simultaneously approach the Registrar for internal resolution and file a police complaint to ensure criminal liability. This dual approach ensures that both civil and criminal aspects of the fraud are addressed effectively.

Practical Examples

• Scenario 1: Members of a cooperative society discover embezzlement of funds by the management committee. They can file a complaint with the Registrar under Rule 134 for internal investigation and also lodge a police FIR for criminal prosecution.

• Scenario 2: A society secretary is found involved in fraudulent transactions affecting the society's financial stability. In such cases, members can seek redressal through cooperative law procedures and seek police intervention for criminal charges.

Reference

• Section 91 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 134 of the Gujarat Cooperative Societies Rules, 1965: Official PDF