Vidhi Codex

The Gujarat Co-operative Societies Act, 1961

The Gujarat Co-operative Societies Act, 1961

Corporate1961224 sections

The Gujarat Co-operative Societies Act, 1961 provides a comprehensive legal framework for the formation, registration, governance, audit, and management of co-operative societies across the State of Gujarat. It applies to primary agricultural credit societies, housing societies, urban co-operative banks, land development banks, and federal co-operative unions. The law establishes the Registrar of Co-operative Societies to supervise operations, protect member rights, settle internal disputes, and prevent financial malpractices. For ordinary citizens, farmers, and urban residents, this Act guarantees transparent democratic decision-making in member-owned organizations, secures credit access, protects financial deposits, and provides a specialized forum for resolving co-operative disputes without entering long court battles.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement.
  2. 2. Definitions.
  3. 3. Registrar and other officers and their powers.
  4. 4. Societies which may be registered
  5. 5. Registration with limited or unlimited liability
  6. 6. Conditions of Registration.
  7. 7. Power to exempt societies from conditions as to registration.
  8. 8. Application for registration.
  9. 9. Registration and provisional registration, certificate of registration.
  10. 10. Registrar of societies.
  11. 11. Power of Registrar to decide certain questions.
  12. 12. Classification of societies.
  13. 13. Amendments of bye-laws of societies.
  14. 14. Power to direct amendment of by-laws.
  15. 15. Change of name
  16. 16. Changes of Liability.
  17. 17. Amalgamation, transfer, division or conversion of societies.
  18. 17A. Powers to direct amalgamation and re-organisation of societies in public interest, etc.
  19. 18. Cancellation of registration of amalgamated divided or converted societies.
  20. 19. Reconstruction of societies.
  21. 20. Cancellation of registration.
  22. 21. Partnership of societies.
  23. 22. Person who may become member.
  24. 23. Removal from membership in certain circumstances.
  25. 24. Open membership.
  26. 25. Nominal associate and sympsthiser member
  27. 26. Cessation of membership.
  28. 27. No rights of membership to be exercised till due payments are made
  29. 28. Voting powers of members.
  30. 29. Restrictions on holding of shares.
  31. 30. Restrictions on transfer of share or interest
  32. 31. Transfer of interest on death of member
  33. 32. Shares or interest not liable to attachment
  34. 33. Right of members to see books, etc.
  35. 34. Liability of person who has ceased to be member
  36. 35. Insolvency of members.
  37. 36. Expulsion of members.
  38. 37. Societies to be bodies corporate.
  39. 38. Address of societies.
  40. 39. Register of members.
  41. 40. Copy of Act, etc. to be open to inspection
  42. 41. Admissibility of copy of entry as evidence
  43. 42. Exemption from compulsory registration of instruments relating to shares and debentures of society.
  44. 43. Power to exempt from taxation.
  45. 44. Restriction on borrowings.
  46. 44A. Power of Committee of co-operative credit structure
  47. 45. Restrictions on making loans.
  48. 46. Restrictions on other transactions with non members
  49. 47. Change and set-off in respect of share or interest of member on immovable property of members borrowing from certain societies.
  50. 48. Prior claim of society
  51. 49. Charge on immovable property of members borrowing from certain societies.
  52. 50. Deduction from salary to meet society’s claim in certain cases.
  53. 51. Direct partnership of State Government in societies.
  54. 52. Indirect partnership of State Government in societies.
  55. 53. Principal State Partnership Fund
  56. 54. Subsidiary State Partnership Fund
  57. 55. Approval of State Government for purchase of shares
  58. 56. Liability to be limited in respect of certain shares
  59. 57. Restriction on amount of dividend.
  60. 58. Indemnity of Apex and Central Societies.
  61. 59. Disposal of share capital and dividend, etc.
  62. 60. Disposal of Principal or Subsidiary State Partnership Fund on Winding up of Apex or Central Society
  63. 61. Principal or Subsidiary State partnership Fund not to form part of assets
  64. 62. Agreement by State Government and Apex Societies
  65. 63. Other forms of State aid to societies.
  66. 64. Provisions of this Chapter to override other laws
  67. 65. Fund not to be divided
  68. 66. Appropriation of profits.
  69. 67. Reserve Fund
  70. 67A. Bad Debt Reserve Fund.
  71. 68. Restriction on dividend.
  72. 69. Contribution to education fund of Gujarat State Co-operative Union.
  73. 70. Contribution to public purposes.
  74. 71. Investment of Funds.
  75. 72. Employees provident fund.
  76. 73. Final authority of society.
  77. 73A. Freedom for affiliation or disaffiliation with a federal society of choice.
  78. 74. Committee, its powers and functions.
  79. 74A. Disqualification for being designated officer simultaneously of certain specified societies or for being designated officer of the same society for more than six years.
  80. 74B. Reservation of seats on committees of certain societies for Scheduled Castes and Tribes and small and marginal farmers.
  81. 74C. Provision for conduct of elections committees and officers of certain societies and term of office of members of such committees.
  82. 74D. Appointment of custodian in certain circumstances.
  83. 75. Handing over records and property to new Chairman on election.
  84. 75A. Restriction on rates of sitting foes and travelling and daily allowances of members of committees.
  85. 76. Appointment of officers and employees and their conditions of service.
  86. 76A. Appointment or removal of Managing Director or Chief Executive Officer to be approved
  87. 76B. Removal of officer.
  88. 77. Annual general meeting.
  89. 78. Special general meeting.
  90. 79. Acts of societies, etc., not to be invalidated by certain defects.
  91. 80. Power to appoint Government nominee.
  92. 80A. Extension of term of nominated committee or appointment of custodian.
  93. 81. Super session of committee.
  94. 81A. Supersession of Committee of Primary Agricultural Credit Co-operative Society
  95. 82. Register’s power to enforce performance of obligations.
  96. 83. Register’s power to seize records, etc.
  97. 84. Auditor
  98. 85. Rectification of defects in accounts.
  99. 86. Inquiry by Registrars.
  100. 87. Inspection of book of indebted society
  101. 88. Inspection of books by Registrar or Financing Bank or federal society.
  102. 89. Suspension of officer or servant of society
  103. 90. Costs of inquiry and inspection
  104. 91. Mode of recovery of sums imposed as penalty or awarded as costs.
  105. 92. Registrar to bring defects disclosed in inquiry or inspection to notice of society
  106. 93. Power of Registrar to assess damages against delinquent promoters, etc.
  107. 94. Power to enforce attendance etc.
  108. 95. Constitution or recognition of federal society to supervise working of societies.
  109. 96. Disputes.
  110. 97. Limitations.
  111. 98. Settlement of disputes.
  112. 99. Procedure for settlement of disputes and power of Registrar, his nominee or board of nominees.
  113. 100. Attachment before award.
  114. 101. Decision of Registrar or his nominee, or board of nominees
  115. 102. Appeal against decision of Registrar or his nominee or board of nominees.
  116. 103. Money how recovered.
  117. 104. Private transfer of property made after issue of certificate void against society.
  118. 105. Transfer of property which cannot be sold.
  119. 106. Recovery of crop loans.
  120. 107. Winding up.
  121. 108. Appointment of liquidator.
  122. 109. Appeal against order of winding up.
  123. 110. Power of Liquidator
  124. 111. Effects of order winding up
  125. 112. Bar of suit in winding up and dissolution matters
  126. 113. Audit of Liquidator’s accounts
  127. 114. Termination of liquidation proceedings.
  128. 115. Disposal of surplus assects
  129. 115A. Order foe winding up, reconstruction, super session of committee, etc. of insured Co-operative Bank not to be made without sanction or Requisition of Reserve bank of India.
  130. 115B. Definitions.
  131. 115C. Qualifications and disqualifications for being committee member.
  132. 115D. Right to vote.
  133. 115E. Term of officers.
  134. 115F. Ensurance of certain things by Committee.
  135. 115G. Urban Bank Credit Equalization Fund.
  136. 115H. Officers and theirs punishment and Cognizance
  137. 115I. Application of the provisions of section 84 to specified bank
  138. 115J. Chapter to override other provisions of Act.
  139. 115K. Savings.
  140. 115L. transitory provisions.
  141. 116. Application of Chapter to certain Land Development Bank.
  142. 117. Definitions
  143. 118. Appointment, powers and functions of Trustee.
  144. 119. Issue of debentures.
  145. 120. Guarantee by State Government.
  146. 121. Vesting of property in trustee and debenture holder’s charge on assets.
  147. 122. Priority of mortgage.
  148. 123. Order granting loans conclusive of certain matters.
  149. 124. Mortgages executed in favour of Primary Land Development Banks to stand vested in State Land Development Bank
  150. 125. Registration of mortgage in favour of Land Development Banks.
  151. 126. Mortgages not to be questioned on insolvency of mortgagor.
  152. 127. Right of land development bank to pay prior debrs of mortgagor.
  153. 128. Mortgages executed by managers of joint Hindu families.
  154. 129. Restrictions on lease.
  155. 130. Section 8 of Act XXXII of 1956 to apply to mortgages to Land Development Banks, subject to certain modifications.
  156. 131. Power of Primary Land Development Bank to receive money and give discharge.
  157. 132. Power of land Development Bank where mortgage property is destroyed or security becomes insufficient.
  158. 133. Power to distrain.
  159. 134. Sale of mortgaged property.
  160. 135. Right of mortgage bank to buy mortgaged property.
  161. 136. Confirmation of sale.
  162. 137. Disposal of sale proceeds.
  163. 138. Certificate to purchaser, delivery of property and title of purchaser
  164. 139. Recovery of loans on Certificate by Registrar
  165. 140. Collector to make recoveries during certain period.
  166. 141. Provision for guarantee funds to meet certain losses.
  167. 142. Agreements executed by members for loans advanced by Land Development Banks to be conclusive evidence
  168. 143. Exemption of officer of Land Development Banks from personal appearance before registering officers
  169. 143A. Transfer of rights and liabilities of Government in respect of schemes sanctioned under Bom. XXVIII of 1942
  170. 144. Service of notice
  171. 145. Officers of banks not to bid at sales
  172. 145-I. Removal or reduction of period of disqualification
  173. 145-J. Corrupt practices
  174. 145-N. Penalty for disorderly conduct in or near polling station
  175. 145-O. Penalty for misconduct at the polling station
  176. 145A. Application
  177. 145B. Definitions
  178. 145C. Time when election to be held
  179. 145D. Conduct of elections
  180. 145E. Cost of conducting elections
  181. 145F. Disqualification for membership
  182. 145G. [Deleted.]
  183. 145H. [Deleted.]
  184. 145K. Maintenance of secrecy of voting.
  185. 145L. Officers etc. at election not to act for candidates or to influence voting
  186. 145M. prohibition of canvassing in or near polling station
  187. 145P. Penalty for illegal hiring or procuring of conveyances at elections
  188. 145Q. Breaches of a official duty in connection with election
  189. 145R. Removal of a ballot papers from polling station to be offence
  190. 145S. other offences and penalties therefore
  191. 145T. Application of section 149 to offences under this Chapter subject to certain modifications
  192. 145U. Disputes relating to elections to be submitted to the Tribunal
  193. 145V. Deposit towards cost for hearing and power to award cost
  194. 145W. Contents of petition
  195. 145X. Relief that may be claimed by the petitioner
  196. 145Y. Powers to make rules for purposes of this Chapter
  197. 145Z. Special provision for election of officers of specified societies
  198. 146. Prohibition of use of the word “Co-operative”
  199. 147. Offences
  200. 148. Punishments for offences under section 147
  201. 149. Cognizance of offences
  202. 150. Gujarat State Co-operative Tribunal
  203. 151. Review of orders of Tribunal.
  204. 152. Tribunal to have power of Civil Court
  205. 153. Appeals
  206. 154. Extension of period limitation of appellate authority in certain cases
  207. 155. Power of State Government and Registrar to call for proceedings of subordinate officers to pass orders thereon
  208. 156. Constitution of State Co-operative Council, its functions, etc.
  209. 157. Recovery of sums due to Government.
  210. 158. Competency of a member to transfer land or interest therein to society.
  211. 159. Registrar’s powers to recover certain sums by attachment and sale of property
  212. 160. Registrar’s powers to give direction
  213. 161. Power to exempt societies from provisions of Act
  214. 162. Delegation of powers of State Government and of Registrar
  215. 163. Branches etc. of societies outside the State
  216. 164. Registrar and other officers to be public servants
  217. 165. Indemnity for acts done in good faith
  218. 166. Bar of Jurisdiction of Courts
  219. 167. Notice necessary in suits
  220. 168. Rules
  221. 169. Repeal saving and construction
  222. 170. Companies Act not to apply.
  223. 0. Preamble
  224. Schedule. Schedule

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