Short Answer

If society funds are misused during redevelopment, members can take legal action under the Gujarat Cooperative Societies Act, 1961 and seek remedies as per the provisions of the Act.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to inquire into the affairs of a society if there are allegations of mismanagement or misuse of funds. This section allows members to file a complaint with the Registrar, who can then investigate the matter and take necessary actions to protect the interests of the society and its members. In practice, members can submit a written complaint to the Registrar along with evidence of the misuse of funds during redevelopment.

Furthermore, Rule 134 of the Gujarat Cooperative Societies Rules, 1965 provides the procedure for conducting an inquiry by the Registrar. This rule outlines the steps involved in the inquiry process, including issuing notices to the concerned parties, collecting evidence, and passing orders based on the findings. In real-world scenarios, if society funds are found to be misused, the Registrar can take actions such as removing the managing committee, ordering a forensic audit, or appointing an administrator to oversee the affairs of the society.

For example, if members suspect that funds allocated for redevelopment have been diverted for personal gain by the managing committee, they can file a complaint with the Registrar under Section 73 of the Act. The Registrar will then conduct an inquiry as per Rule 134 of the Rules to investigate the allegations and take appropriate actions to rectify the misuse of funds.

Another scenario could be where members discover discrepancies in the financial statements related to the redevelopment project, indicating possible misuse of funds. In such cases, members can approach the Registrar, provide evidence of the discrepancies, and request a thorough investigation to hold the responsible parties accountable.

In summary, under the Gujarat Cooperative Societies Act, 1961 and Rules, members have the legal recourse to address the misuse of society funds during redevelopment by lodging complaints with the Registrar, initiating inquiries, and seeking appropriate remedies to safeguard the interests of the society and its members.

References

• Section 73 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 134 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]