Short Answer

Members have protection under Section 73 of the Gujarat Cooperative Societies Act, 1961 if the society's accounts are fudged by officials.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 states that if any officer or member of a cooperative society willfully makes a false entry in any book, account, or record, or willfully omits a material entry, with the intent to defraud the society or any other person, they shall be punishable with imprisonment for a term which may extend to two years, or with a fine, or both. This provision aims to safeguard the interests of the members and ensure the integrity of the society's financial records.

In practice, if members suspect that the society's accounts have been tampered with or manipulated by officials, they can file a complaint with the Registrar of Cooperative Societies, providing evidence of the fraudulent activities. The Registrar will then conduct an investigation into the matter, examine the records, and take necessary legal actions against the guilty parties.

Real-world Scenarios

• In a cooperative housing society, the treasurer manipulates the accounts to siphon off funds for personal use. Members discover discrepancies during an audit and report the matter to the Registrar under Section 73.

• A cooperative credit society's manager alters loan records to benefit certain members unfairly. Upon investigation by the Registrar, the manager is found guilty under Section 73 and faces legal consequences.

• In a farmers' cooperative society, the president colludes with suppliers to inflate procurement costs and embezzle funds. Members file a complaint, leading to a thorough investigation and legal action.

References

• Section 73 of the Gujarat Cooperative Societies Act, 1961: Official PDF