Short Answer

If the committee of a cooperative society ignores the Registrar's directions, they may face legal consequences and penalties.

Detailed Explanation

Section 74 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to issue directions to the committee of a cooperative society for proper management and administration. If the committee fails to comply with these directions, it can lead to serious repercussions. Ignoring the Registrar's directions can result in the Registrar taking punitive actions against the committee members, including removal from office, imposition of fines, or even dissolution of the society.

In practice, this provision ensures that the decisions and directives of the Registrar, who acts as a regulatory authority, are followed diligently by the committee to maintain transparency, accountability, and good governance within the cooperative society. Failure to adhere to the Registrar's directions can disrupt the functioning of the society and lead to legal disputes and conflicts among members.

For example, if the Registrar instructs the committee to conduct a financial audit of the society within a specified timeframe and the committee disregards this directive, the Registrar may initiate disciplinary proceedings against the committee members. This can tarnish the reputation of the society and erode trust among its members.

Another scenario could involve the Registrar directing the committee to rectify certain irregularities in the society's bylaws, and if the committee chooses to ignore these instructions, it could result in legal action being taken against them. Ultimately, non-compliance with the Registrar's directions can jeopardize the stability and credibility of the cooperative society.

In case of persistent non-compliance, the Registrar may escalate the matter to higher authorities or seek judicial intervention to enforce compliance with the directions. Therefore, it is crucial for the committee of a cooperative society to respect and adhere to the directives issued by the Registrar to avoid legal repercussions and maintain the smooth functioning of the society.

References

• Section 74 of the Gujarat Cooperative Societies Act, 1961: [link]

• Gujarat Cooperative Societies Act, 1961: [link]