Short Answer

If a society fails to hold an audit at all, certain steps can be taken under the Gujarat Cooperative Societies Act, 1961 and Rules, 1965.

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 empowers the Registrar to direct a society to conduct an audit if it fails to do so. The Registrar may appoint an auditor to conduct the audit and recover the expenses from the society. Failure to comply with the Registrar's directions can lead to penalties or other actions as per the Act.

Rule 79 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the audit process and the consequences of non-compliance. It outlines the procedure for conducting an audit, the qualifications of auditors, and the submission of audit reports. If a society fails to hold an audit as required, the Registrar can intervene and ensure compliance through appropriate measures.

In practical terms, if a society neglects to conduct an audit, the Registrar may issue a notice directing them to do so within a specified period. If the society still fails to comply, the Registrar can appoint an auditor on their behalf and recover the audit expenses from the society's funds. Non-compliance with the Registrar's directives can result in fines, penalties, or even suspension of certain privileges.

Example 1: ABC Cooperative Society fails to conduct its annual audit for two consecutive years. The Registrar issues a notice directing them to appoint an auditor within 30 days. If ABC Society fails to comply, the Registrar appoints an auditor and recovers the audit expenses from the society.

Example 2: XYZ Cooperative Society repeatedly ignores the audit requirements despite reminders from the Registrar. As a result, the Registrar imposes a penalty on XYZ Society and appoints an auditor to conduct the overdue audit.

Example 3: LMN Cooperative Society refuses to cooperate with the appointed auditor during the audit process. In such cases, the Registrar may take stricter actions, such as suspending the society's banking operations until the audit is completed.

Reference

• Section 81 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 79 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]