Short Answer

Yes, under the Gujarat Cooperative Societies Act, 1961 and Rules, a society can hold a vendor accountable for overcharging and seek legal remedy.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers a cooperative society to take action against any vendor who overcharges for goods or services provided to the society. This section allows the society to file a complaint with the Registrar of Cooperative Societies against such vendors. The Registrar may then conduct an inquiry and take necessary action, which could include penalizing the vendor or terminating the contract.

Rule 86 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the procedure for lodging a complaint against a vendor for overcharging. It outlines the documentation required, the process of investigation, and the possible outcomes of the inquiry. This rule ensures that societies have a structured mechanism to address such disputes effectively.

In practice, if a vendor is found to be overcharging, the society can follow the steps outlined in Section 73 and Rule 86 to initiate legal proceedings against the vendor. The society can seek compensation for the excess amount paid, terminate the contract, or take any other appropriate action as deemed fit.

Practical Examples

• Scenario 1: A vendor supplying stationery to a cooperative society inflates prices beyond market rates. The society can file a complaint under Section 73 and Rule 86, leading to an inquiry and possible penalties for the vendor.

• Scenario 2: A maintenance contractor overcharges for services provided to a housing cooperative. The society can utilize the provisions of the Act and Rules to seek redressal and hold the vendor accountable.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 73

• Gujarat Cooperative Societies Rules, 1965: Rule 86