Short Answer

If a society's maintenance fund is misappropriated, the Gujarat Cooperative Societies Act, 1961 and the Gujarat Cooperative Societies Rules, 1965 apply to address such issues.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 deals with the audit of the society's accounts. This section mandates that every society must conduct an annual audit of its accounts by a qualified auditor. If misappropriation of the maintenance fund is suspected, the audit report will reveal any discrepancies or irregularities in the financial transactions of the society. This section ensures transparency and accountability in the financial management of cooperative societies.

Rule 122 of the Gujarat Cooperative Societies Rules, 1965 provides for the procedure to be followed in case of misappropriation of funds. This rule outlines the steps to be taken by the society, including reporting the matter to the Registrar of Cooperative Societies, conducting an internal inquiry, and taking necessary disciplinary actions against the individuals involved in misappropriation. By following this rule, the society can take legal actions against the offenders and recover the misappropriated funds.

Practical Examples

• Scenario 1: In a cooperative housing society, the treasurer is suspected of embezzling the maintenance fund. The society follows Section 73 of the Act and conducts an audit, which reveals the misappropriation.

• Scenario 2: A cooperative society notices discrepancies in the maintenance fund accounts. Following Rule 122 of the Rules, the society reports the matter to the Registrar and initiates an internal inquiry to identify the culprits.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 73

• Gujarat Cooperative Societies Rules, 1965: Rule 122