Short Answer

The society can retain a member's deposit for a period of 3 years after they cease to be a member.

Detailed Explanation

Section 31(2) of the Gujarat Cooperative Societies Act, 1961 states, "When a member ceases to be a member, the society may retain his deposit for a period not exceeding three years." This means that after a member leaves the society, their deposit can be held by the society for up to three years.

In practice, this provision allows the society to retain the member's deposit for a reasonable period to cover any outstanding dues or liabilities that the member may have towards the society. It provides a buffer for the society to settle any financial matters before releasing the deposit back to the former member.

Real-world Scenarios

• Mr. Patel resigns from a cooperative society where he was a member and had a deposit with the society. The society retains his deposit for three years to ensure all his outstanding dues are cleared before refunding the remaining amount.

• Ms. Shah's membership in a cooperative society is terminated due to non-compliance with the society's bylaws. The society holds her deposit for three years to cover any penalties or fines she may owe before returning the balance.

Reference

• Section 31(2) of the Gujarat Cooperative Societies Act, 1961: Official PDF