Short Answer

To challenge unauthorized loans or advances in the accounts, you can take recourse to Section 73 of the Gujarat Cooperative Societies Act, 1961 and Rule 84 of the Gujarat Cooperative Societies Rules, 1965.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 empowers members to challenge unauthorized loans or advances taken by the society. This section allows any member to file a complaint with the Registrar regarding such unauthorized transactions. The Registrar will then conduct an inquiry to determine the validity of the complaint and take necessary actions to rectify the situation. In practice, this section serves as a safeguard against misuse of funds by the society's management.

Rule 84 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for lodging complaints related to unauthorized loans or advances. It outlines the format and content requirements for filing such complaints with the Registrar. Additionally, the rule specifies the timelines within which the Registrar must initiate an inquiry and communicate the findings to the concerned parties. This rule ensures transparency and accountability in dealing with financial irregularities within cooperative societies.

Practical Examples

• Scenario 1: Mr. Patel, a member of a cooperative society, notices discrepancies in the financial statements indicating unauthorized loans. He files a complaint with the Registrar citing Section 73 of the Act.

• Scenario 2: A group of members collectively challenges a series of unauthorized advances made by the society's management, following the procedures outlined in Rule 84 of the Rules.

• Scenario 3: The Registrar conducts an inquiry into a complaint regarding unauthorized loans, finds evidence of wrongdoing, and directs the society to rectify the financial records as per Section 73.

References

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

• Rule 84 of the Gujarat Cooperative Societies Rules, 1965: Official PDF