Short Answer

No, members cannot claim a share of the profit from the developer if the redevelopment increases the value significantly.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 states that the surplus arising from the redevelopment project belongs to the cooperative society. This means that any profit generated from the redevelopment, due to the increase in property value, is the property of the society as a whole and not individual members. The Act aims to ensure that the benefits of redevelopment are utilized for the collective welfare of all members rather than being distributed individually.

Furthermore, Rule 80 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the utilization of surplus funds by the cooperative society. It mandates that the surplus funds should be utilized for the welfare of the society, such as for repairs, maintenance, or other development projects. Therefore, any profit earned from redevelopment should be reinvested back into the society for the benefit of all members.

In practice, this means that individual members do not have the right to claim a share of the profit generated by the developer through the redevelopment project. The surplus funds should be managed and utilized by the cooperative society in accordance with the provisions of the Act and Rules.

Real-world Scenarios

• Scenario 1: A cooperative society undergoes redevelopment, resulting in a significant increase in property value. The surplus funds generated from the project are deposited into the society's account as per Section 63 of the Act.

• Scenario 2: Members of a cooperative society demand a share of the profit earned by the developer in a redevelopment project. The society's managing committee informs them that as per Rule 80 of the Rules, the surplus funds will be utilized for the society's welfare.

Reference

• Section 63 of the Gujarat Cooperative Societies Act, 1961

• Rule 80 of the Gujarat Cooperative Societies Rules, 1965