Short Answer

No, a society is not allowed to sell common utilities like reverse osmosis water for profit.

Detailed Explanation

Rule 92 of the Gujarat Cooperative Societies Rules, 1965 prohibits cooperative societies from engaging in activities for profit other than those specified in their bylaws. This means that societies cannot sell common utilities for profit unless it is explicitly allowed in their bylaws. In practice, this rule ensures that societies operate for the benefit of their members rather than for commercial gain. Selling common utilities for profit could lead to conflicts among members and go against the cooperative principles of mutual help and service.

Furthermore, Section 66 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to inquire into the affairs of a society if there are complaints or suspicions of misconduct. If a society is found to be selling common utilities for profit without proper authorization, it could face penalties or even dissolution. Therefore, it is crucial for societies to adhere to the rules and regulations governing their operations to maintain transparency and accountability.

In a real-world scenario, if a cooperative society decides to sell reverse osmosis water for profit without the necessary authorization in their bylaws, it could lead to disputes among members regarding the use of common resources for personal gain. This could result in legal action being taken against the society by dissatisfied members or regulatory authorities. To avoid such conflicts, societies should always operate within the legal framework provided by the Gujarat Cooperative Societies Act and Rules.

For a step-by-step process, if a society wishes to sell common utilities like reverse osmosis water for profit, they must first amend their bylaws to include this provision with the approval of the general body meeting. They should then seek permission from the Registrar of Cooperative Societies to ensure compliance with the law and prevent any potential disputes or legal consequences.

Examples:

• ABC Cooperative Society decides to sell purified water from its reverse osmosis plant to non-members at a higher price than members. This action goes against Rule 92 of the Gujarat Cooperative Societies Rules, 1965, leading to discontent among members and a possible inquiry by the Registrar.

• XYZ Cooperative Society includes a provision in its bylaws allowing the sale of common utilities for profit, including reverse osmosis water. This decision is made after obtaining approval from the general body meeting and the Registrar, ensuring compliance with the law and preventing any disputes.

References

• Rule 92 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

• Section 66 of the Gujarat Cooperative Societies Act, 1961: Official PDF