Short Answer

Yes, a society can be penalized if it is found not keeping the required books.

Detailed Explanation

Section 75 of the Gujarat Cooperative Societies Act, 1961 mandates that every society shall maintain proper books of accounts. Failure to do so can lead to penalties under Section 85 of the Act. This means that societies must keep records of their financial transactions, assets, liabilities, income, and expenditure in a systematic manner. Non-compliance with this requirement can result in legal consequences, including fines and other penalties.

Furthermore, Rule 74 of the Gujarat Cooperative Societies Rules, 1965 specifies the various books and registers that a society must maintain, such as cash book, ledger, minutes book, etc. These records are essential for ensuring transparency, accountability, and proper management of the society's affairs. Failure to maintain these books can not only lead to penalties but also hinder the smooth functioning of the society.

In practice, if a society is found not keeping the required books, the Registrar of Cooperative Societies may issue a notice directing the society to rectify the non-compliance within a specified time. If the society fails to comply, the Registrar may impose penalties as per the provisions of the Act and Rules. This enforcement mechanism ensures that societies adhere to the statutory requirements regarding record-keeping.

For example, if a housing cooperative society fails to maintain its financial records as per the prescribed format, the Registrar may levy a fine on the society. Similarly, if a credit cooperative society neglects to keep proper minutes of its meetings, it could face penalties under the law. In extreme cases of persistent non-compliance, the Registrar may take further legal action, including suspension or cancellation of the society's registration.

In conclusion, maintaining the required books and records is crucial for the proper functioning and governance of cooperative societies. Failure to do so can result in penalties and other legal repercussions, highlighting the importance of compliance with the statutory provisions.

References

• Gujarat Cooperative Societies Act, 1961: Section 75, Section 85

• Gujarat Cooperative Societies Rules, 1965: Rule 74