Short Answer

Members can take recourse by filing a complaint with the Registrar of Cooperative Societies under Section 75 of the Gujarat Cooperative Societies Act, 1961.

Detailed Explanation

Section 75 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to inquire into the affairs of a cooperative society if its audit report is repeatedly qualified. This section allows any member of the society to file a complaint with the Registrar regarding the qualified audit reports. The Registrar can then investigate the matter and take necessary actions, including directing the society to rectify the issues identified in the audit.

In practice, if a cooperative society's audits are repeatedly qualified, it indicates financial irregularities or non-compliance with accounting standards. Members can use Section 75 to bring such issues to the attention of the Registrar for further investigation. The Registrar may conduct a detailed inquiry, summon relevant parties for explanations, and issue directives to ensure compliance with the law.

Real-world Scenarios

• Scenario 1: A housing cooperative's audit reports consistently show discrepancies in financial statements. Concerned members can collectively file a complaint under Section 75 to address the underlying issues.

• Scenario 2: A credit cooperative society's audits reveal mismanagement of funds and lack of transparency. Individual members can utilize Section 75 to seek intervention from the Registrar for corrective measures.

Reference

• Section 75 of the Gujarat Cooperative Societies Act, 1961: Official PDF