Short Answer

For funding major structural work in case of repair instead of redevelopment, Gujarat Cooperative Societies Act, 1961 allows cooperative societies to utilize their reserve funds, take loans, or levy special contributions on members.

Detailed Explanation

Section 66 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to utilize their reserve funds for major repairs or structural work. This means that societies can dip into their accumulated reserves to finance significant repairs without resorting to redevelopment. In practice, this provision offers societies a financial cushion to address urgent structural issues without burdening members with immediate special contributions or loans.

Additionally, Rule 96 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on raising funds through loans. Societies can approach financial institutions for loans to fund major structural repairs, ensuring timely completion of essential work. This rule streamlines the process for societies to secure necessary funds for critical repairs, safeguarding the structural integrity of their buildings.

In real-world scenarios, a cooperative housing society facing severe structural issues such as a collapsing roof or weakened foundation can utilize its reserve funds as per Section 66 to undertake immediate repairs. This ensures the safety of residents and prevents further damage. Furthermore, if the reserve funds are insufficient, the society can follow the procedures outlined in Rule 96 to secure a loan for comprehensive structural work.

Practical Examples

• Scenario 1: A cooperative society in Gujarat discovers extensive water damage to its building's foundation. The society decides to repair the damage instead of opting for redevelopment. They utilize their reserve funds as per Section 66 to address the structural issues promptly.

• Scenario 2: Another society faces a similar situation but lacks adequate reserve funds. Following Rule 96, they approach a bank for a loan to fund the necessary repairs, ensuring the building's stability and safety for all residents.

References

• Section 66 of the Gujarat Cooperative Societies Act, 1961

• Rule 96 of the Gujarat Cooperative Societies Rules, 1965