Short Answer

Members may receive equity or extra entitlement in the new project if they give up the old one, subject to the provisions of the Gujarat Cooperative Societies Act, 1961 and Rules.

Detailed Explanation

Rule 67 of the Gujarat Cooperative Societies Rules, 1965 deals with the redevelopment of cooperative housing societies. This rule allows for the transfer of the property of the society to a developer for redevelopment. In such cases, members who give up their old units may be entitled to receive equity or extra entitlement in the new project. The rule specifies the procedure for such redevelopment, including obtaining the consent of the majority of members and approval from the Registrar.

Furthermore, Section 22 of the Gujarat Cooperative Societies Act, 1961 provides for the rights and privileges of members in a cooperative society. This section ensures that members have a say in decisions affecting the society, including redevelopment projects. It also mandates that any benefits or entitlements accruing from such projects should be distributed fairly among the members based on their contribution or ownership rights.

In practice, when a cooperative housing society decides to undergo redevelopment, members who agree to give up their old units may be offered shares or additional space in the new project as compensation. This ensures that members are adequately compensated for relinquishing their existing units and incentivizes participation in the redevelopment process.

For example, in a cooperative housing society where a majority of members agree to redevelopment, those members who vacate their old units may be given priority in choosing the location or size of their new units. This incentivizes early participation and cooperation among members in the redevelopment process.

In another scenario, if a developer offers shares in the new project to members who surrender their old units, the distribution of these shares should be done equitably among all participating members based on their respective ownership rights or contributions to the society.

Overall, the Gujarat Cooperative Societies Act and Rules ensure that members who give up their old units for redevelopment are fairly compensated and receive equity or extra entitlement in the new project based on their ownership rights and contributions to the society.

References

• Rule 67 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

• Section 22 of the Gujarat Cooperative Societies Act, 1961: Official PDF