Short Answer

No, the committee cannot collect the maintenance budget if it is not approved by the Annual General Meeting (AGM).

Detailed Explanation

Section 72 of the Gujarat Cooperative Societies Act, 1961 states that the committee of a cooperative society must prepare a budget for the maintenance of the society's property and services. This budget needs to be approved by the AGM. If the AGM does not approve the maintenance budget, the committee cannot collect it from the members. This provision ensures transparency and democratic decision-making within the society.

In practice, if the AGM does not approve the maintenance budget, the committee should convene another meeting to address the concerns raised by the members. The committee must work towards reaching a consensus on the budget to ensure smooth functioning of the society. Without the approval of the AGM, the committee does not have the authority to collect the maintenance budget.

Real-world Scenarios

• Scenario 1: During the AGM, the members raise objections to certain expenses included in the maintenance budget. As a result, the budget is not approved. In this case, the committee must address the objections and revise the budget accordingly before seeking approval from the AGM.

• Scenario 2: The committee decides to collect the maintenance budget despite it not being approved by the AGM. This action would be in violation of Section 72 of the Act and could lead to legal consequences.

• Scenario 3: The AGM approves a revised maintenance budget after the committee addresses the concerns raised by the members. The committee can then proceed with collecting the approved budget from the members.

References

• Section 72 of the Gujarat Cooperative Societies Act, 1961: Official PDF