Short Answer

Members paying for redevelopment cannot charge interest or fee to the builder.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 states that a cooperative society may undertake the redevelopment of its premises with the consent of its members. However, the Act does not provide for members to charge interest or fees to the builder for such redevelopment. This means that any financial arrangements or agreements between the members and the builder must be in compliance with the Act and Rules.

Rule 120 of the Gujarat Cooperative Societies Rules, 1965 further clarifies that any financial transactions related to the redevelopment must be transparent and in accordance with the cooperative principles. Therefore, members cannot unilaterally impose interest or fees on the builder without proper authorization or agreement.

In practice, if members wish to recover costs or seek compensation for redevelopment, they should follow the procedures outlined in the Act and Rules. This may involve holding discussions with the builder, drafting a formal agreement, and obtaining approval from the cooperative society's governing body.

Real-world Scenarios

• Scenario 1: Members of a cooperative society decide to undertake redevelopment of their building. They cannot charge interest to the builder without following the legal procedures outlined in the Act and Rules.

• Scenario 2: A builder agrees to undertake redevelopment on behalf of the members. The financial terms, including any charges or fees, must be agreed upon mutually and in compliance with the cooperative laws.

Reference

• Section 63 of the Gujarat Cooperative Societies Act, 1961

• Rule 120 of the Gujarat Cooperative Societies Rules, 1965