Short Answer

A member whose share is fraudulently transferred can take legal action under the Gujarat Cooperative Societies Act, 1961.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 empowers a member to challenge any fraudulent transfer of shares. This section allows the member to file a complaint with the Registrar of Cooperative Societies, seeking redressal for the wrongful transfer. The member can request the Registrar to investigate the matter and take necessary actions to rectify the fraudulent transfer.

Furthermore, Rule 148 of the Gujarat Cooperative Societies Rules, 1965 provides detailed procedures for lodging complaints related to share transfers. The rule outlines the documentation required, the process of filing a complaint, and the investigation mechanism that the Registrar will follow to resolve the issue. Members must adhere to the guidelines specified in Rule 148 to ensure their complaint is properly addressed.

In practice, if a member suspects a fraudulent transfer of shares, they should gather evidence to support their claim and submit a formal complaint to the Registrar of Cooperative Societies. The Registrar will then initiate an investigation based on the provisions of Section 63 and Rule 148. If the transfer is found to be fraudulent, appropriate actions will be taken to rectify the situation, which may include reversing the transfer and penalizing the wrongdoer.

Practical Examples

• Mr. Patel, a member of a cooperative society, discovers that his shares were transferred without his consent. He files a complaint with the Registrar under Section 63, citing the fraudulent transfer and providing evidence to support his claim. The Registrar investigates the matter as per Rule 148 and orders the reversal of the transfer.

• Ms. Desai suspects foul play in the transfer of her shares to another member. She follows the procedures outlined in Rule 148, submits a detailed complaint to the Registrar, and cooperates with the investigation. The Registrar's inquiry confirms the fraudulent transfer, leading to appropriate corrective measures.

• In a case where multiple members raise concerns about share transfers within the society, a collective complaint can be filed with the Registrar under Section 63. The Registrar conducts a comprehensive investigation based on Rule 148, ensuring that all affected members receive justice in case of fraudulent transfers.

References

• Section 63 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 148 of the Gujarat Cooperative Societies Rules, 1965: Official PDF