Short Answer

Yes, if the society has rules against rentals, they need to amend the by-laws to enforce them.

Detailed Explanation

Rule 56 of the Gujarat Cooperative Societies Rules, 1965 states that the by-laws of a cooperative society may contain provisions regarding the purposes for which funds may be used, the manner in which they shall be invested, and the restrictions on the transfer of shares. This means that the by-laws of a society can include rules related to rentals and their enforcement. If the society wishes to prohibit or regulate rentals within its premises, it must amend the existing by-laws to explicitly include such provisions.

In practice, this amendment process involves convening a general body meeting of the society's members to propose the changes to the existing by-laws. The proposed amendments must be approved by a certain majority of the members as specified in the existing by-laws or the Gujarat Cooperative Societies Act, 1961. Once the amendments are duly passed, they become legally enforceable, and the society can take action against any member found violating the rental rules.

For example, let's consider a scenario where a cooperative housing society decides to ban short-term rentals like Airbnb within its premises due to security concerns. The society can propose an amendment to the by-laws specifying this prohibition. After the necessary approvals from the members, the amended by-laws will now legally prevent any member from engaging in such rental activities within the society.

Another scenario could involve a society wanting to regulate the rental amounts charged by its members to ensure affordability for all residents. By amending the by-laws to include rental price caps or guidelines, the society can maintain harmony and fairness in the rental arrangements within the premises.

In summary, amending the by-laws is essential for a cooperative society to enforce rules against rentals effectively. This process ensures that all members are aware of the regulations and can be held accountable for any violations.

References

• Rule 56 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

• Gujarat Cooperative Societies Act, 1961