Short Answer

Yes, as per the Gujarat Cooperative Societies Act, 1961, and Rules, 1965, societies are required to maintain an emergency fund and a sinking fund for major repairs.

Detailed Explanation

Section 70 of the Gujarat Cooperative Societies Act, 1961 mandates that every cooperative housing society shall maintain a fund for repairs and maintenance, which includes an emergency fund and a sinking fund. The emergency fund is utilized for unforeseen expenses or urgent repairs, while the sinking fund is set aside for major repairs and replacements of the society's assets. The purpose of these funds is to ensure that the society can cover expenses related to maintenance and repairs without burdening the members with sudden financial demands.

In practice, the society collects contributions from its members towards these funds on a regular basis. The amount to be contributed is determined based on the size of the society, the number of members, and the estimated maintenance costs. The funds are managed by the society's managing committee, which is responsible for utilizing them for their designated purposes.

Real-world Scenarios

• Scenario 1: A housing society in Gujarat faces a sudden roof leakage during the monsoon season. The managing committee immediately uses the emergency fund to repair the roof and prevent further damage to the building.

• Scenario 2: A cooperative society decides to undertake a major renovation of its common areas. The sinking fund is utilized to cover the expenses of the renovation, including painting, flooring, and other structural repairs.

Reference

• Section 70 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Gujarat Cooperative Societies Rules, 1965