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EXTRAORDINARY
PUBLISHBDBY AUTHORITY
Vol. LIV] MONDAY' AfBM5,
Separatepaging is given to this Part in order that it may be filed as a SeparateCompilation.

PART IV
Acts of GujaratLegislatureand Ordinancespromulgatedand
Regulationsmade by the Governor.

The following Act of the Gujarat Legislature,having been

assentedto by the Governor on the lzth April, zAiB is hereby
publishedfor generalinformation.
c. J. GOTHT,
Secretaryto the Governmentof Gujarat,
Legislativeand ParliamentaryAffairs Department.

GUJARAT ACT NO. 17 OF 2013.

(First published,after having receivedthe assentof the Governor,in the
"GujaratGovernment Gazette",onthel5'hApril, 2013).

AN ACT

further to amendthe Gujarat Co-operativeSocietiesAct, 1961.

WHEREAS by the Constitution (Ninety-Seventh Amendment)

Act, 2011, PART IXB relating to the Co-operative Societieshas been
insertedin the Constitution;

AND WHEREAS it is expedient to amend the Gujarat Co-

operative Societies Act, 196l in conformity with the Constitution
(Ninety-SeventhAmendment)Act, 2017.

It is hereby enactedin the Sixty-fourth Year of the Republic of

India as follows :-

TV-EX-17-1 n-1
 lt-2 GUJARAT GOVERNMENTG AZETTE.EX.. I 5 -04-2013 IPARTtV

Shorttitle. 1. This Act may be called the Gujarat Co-operativeSocieties

(Amendment)Act, 2013.

Amendm entof 2. In the Gujarat Co-operative Societies Act, 1961 (hereinafter Guj.X ,t'1e62.
section2 of Guj. referredto as "the principalAct"), in sectiofr2,-
X of I 962.
(1) afterclause(1), the fbllowing clauseshall be inserted,nameiy :-

"(1A) "authorisedperson" means a person duly authorisedby

the Registrarto take action under the provisions of this
Act:":

(2) for clause(5), the following clauseshallbe substituted,namely:-

"(5) "committee" means the Managing Committee or other

goveming body of a society to which the direction and
control of the managementof the affairs of a society is
entrustedto;".

Insertionof new 3. In the principal Act, after section28, the following sectionsshall
28Aand be inserted"namely :-
sections
28B in Guj. X of
1962.

Attendanceof "28A. It shall be the duty of every memberof a society-

meetingby
members.
(i) to attendatleasttwo meetingsof the generalbody
within a consecutiveperiod of five years;
(ii) to utilize minimum level of servicesas prescribed
in the bye-laws:

Provided that a member who does not attend atleasttwo

meetings of the general body as above or does not utilize
minimum level of servicesas prescribed in the bye-laws for a
consecutiveperiod of five years,shall be liable to be removedby
the Registraras the memberof the society :

Provided further that before removing such person from

the membership of the society, he shall be afforded an
opportunity of being heard and if his explanation is found
satisfactory,his name shall not be removedfrom the membership
of the society.

Provision for co- 288. The State Government may impart co-operative
operative education education and training to the members of the co-operative
and training to
societiesso as to enablethem to effectively managethe affairs of
members.
the society.".
PARTIV I GUJARATGOVERNMENTGAZETTE,EX.,t5-04-20t3 1l-3

4. In the principal Act, after section41, the following sectionshall Insertion of new
be inserted.namelv :- section41A in Guj.
X of 1962.
Returns, "41'lA. rt.., society shall file returnswithin six months of the
etc' closure of every financial year to such authority as may be
designatedby the State Governmentfor the purpose, including
the following, namely :-

(a) annualreport of its activities;'

(b) its auditedstatementof accounts;
(c) plan for surplus disposal as approved by the
generalbody of a society;
(d) list of amendmentsto the bye-laws of the society,
if any;
(e) declaration regarding date of holding of its
generai bociy meeting anci conciuct of elections
when due; and
(0 any other information required by the Registrarin
pursuanceof any of the provisionsof the Act.".

5. In the principal Act, in section 50, in sub-section(2), after the Amendment of

words "deducted to the society", the words 'within a period of fourteen section 50 of Guj. X
of 1962.
days from the date on which such deductionis made" shall be inserted.

6. (1) In the principal Act, in section74, after sub-section(1), Amendment of

the following sub-sections shall be inserted,namely :- section74 of Guj. X
of 1962.

"(1A) Except as otherwise provided herein, the Managing

Committee of a society shall consist of such number of
members as may be provided in the bye-laws but not
exceedingtwenty-one members.

(lB) (i) There shall be reservedone seatfor the Scheduled

Castesor the ScheduledTribes and two seatsfor Women
in the managingcommitteeof every society consistingof
individuals as members and having members from such
classor categoryof persons.

(ii) One seatmay be reservedfor the personswho are

small farmers and marginal farmers.

Explanation.- The expressions 'lmarginal farmer" and

"small farmer" shall have the meaningsrespectivelyassignedto
them in clauses(g) and (p) of section 2 of the Gujarat Rural
president,s
Act DebtorsRelief Act, 1976;
No.35orre76.

(iC) The term of offrce of the elected members of the

managing committee and its office bearersshall be five
 17-4 G AZETTE.EX..15.04-2413
GUJARATGOVERNMENT IPARTIV

years fiom the date of election. The {epr1 of offrce

bearersshall be co-terminuswith the term of managing
committee:

Provided that the managing committee may fili up a

casualvacancyin the committeeby nominationout of the same
class or categoriesmembers in respect of which the casual
vacancy has arisen, if the tetm of oftice of thc managing
committeeis lessthan half of its originalterm.

(1D) (a) The societyshall co-opt personshaving experiencein

the field of banking, management, finance or
in any other field relatingto the objectsand
specialisation
activitiesundertakenby the societyas the membersof the
manasinscommittee:

Provided that the number of such co-opted

membersshall not exceedtwo in addition to the twenty-
one membersas specifiedin sub-section(1A).

(b) The co-optedmembersas aforesaidshall not have the

right to vote in any election of the society in their
capacityas such membersor to be eligible to be elected
as office bearersof the Managing Committee.

(ltr) In case,where there are functionaldirectorsof a society,

they shall also be members of the Managing Committee.
Such members shall be excluded for the purpose of
counting the total number of members of the Managing
Committee.

Explanation.- For the pu{pose of this sub-section,

"functional director" meansand includesa Managing Director or
a Chief Executive Officer by whatever designationcalled or any
ex-fficio member or any of the Head of the Departmentof the
concernedsociety,nominatedby the Committee.".

Deletion of 7. In the principal Act, section 748 shall be deleted.

section748 of
Guj. X of 1962.

Amendmentof 8. In the principal Act, in section 74C, after sub-section(3), the

74Cof following sub-sectionshallbe added,namely:-
section
Guj. X of 1962. ,

"(4) The election of the Managing Committee shall be

conductedbefore the expiry of its term so as to ensurethat the
newly elected members of the Managing Committee assumes
office immediately on the expiry of the term of office of the
membersof the outgoingManagingCommittee.".
 PART IV ] GUJARAT GOVERNMENT G AZETTE.EX.. 15-04-2013 1l -5

9. In the principal Act, afler section 74C, the following section

shallbe inserted"namelv:- Insertion of new
section74CC in
"7 4CC. ( I ) The election of the Committee and of the office Guj. X of 1962.
Electionof
societiesother bearersof the societiesotherthan the specifredsocietiesas referredto in
than specified section l4C shall be conducted by such authority as the State
societies.
Governmentmay, by notification in the Official Gazette,notify.

(2) The authority appointed under sub-section( 1) shall hold the

electionasper the rules as may be prescribed.

(3) The election of the Managing Committee shall be conducted

before the expiry of its term so as to ensure that the newly elected
membersof the Managing Committee assumesoffice immediately on
the expiry of the term of office of the members of the outgoing
lvianagingCommittee.".

Deletion of
10. ln the principal Act, section74D shall be deleted. section74D of
Guj. X of 1962.

11. In the principalAct, in section77,- A mendm entof

section 77 of Guj.
. x of1962.
(a) for sub-section(1) and the provisosthereunder,the following
shall be substituted.namelY:-

"(1) Every society shall convene the general meeting of its

memberswithin a period of six months of closureof the financial
year to transactthe businessas provided under this Act.";

(5), the words "or, as the casemay be, the

(b) in sub-section
shallbe
periodextendedby the Registrarunderthat sub-section"
deleted.
'
12. In the principal Act, for section 81 the following shall be Substitution of
section 81 of Guj.
substituted,namely '-
X of 1962.

or o'81. (1) If in respectof a Managing Committeeof a society

Supersession
of having the Registrar as its members,the State Government,and
suspension
Managing
in respectof a Managing Committee of a Society which doesnot
Committee.
have the Registrar as its member,the Registrar,is of the opinion
that -

(i) the Committeepersistentlymakesdefault; or

(ii) the Committee is negligent in the performance of its
duties imposed on it by or under this the Act or the rules
made thereunderor the bye-iaws; or
t] -6 GUJARATGOVERNMENTGAZETTE,EX.,15-04-20t3 IPARTIV

(iii) the Committeehas committed any act prejudicialto the

interestof the societyor its members;or
(iv) there is stalematein the constitutionor functions of the
committee;or
(v) the authority which is assigned the f'unctions of
conductingelectionsin respectof Managing Committee
has failed to condugtelections in accordancewith the
provisionsof this Act,

the StateGovernmentor, as the casemay be, the Registrar,after

giving the committee an opportunity of being heard, within
fifteen days from the date of issue of notice, by an order in
writing, supersedeor kept under suspensionthe committeeand
appoint-

(a) a Committee,consistingof one or more membersof the

society, not being the members of the Committee
superseded underthis sub-section,or
(b) one or more Administratorswho need not be membersof
the society, or from amongst the officers of the Co-
operativeDepartmentof the StateGovernment,

to managethe affairs of the society for a period not exceeding

six months :

Providedthat the committeeof any suchsocietyshall not

be supersededor kept under suspension where there is no
Government shareholdingor loan or financial assistanceor any
guaranteeby the Government:

Provided further that in caseof a society carrying on the

businessof banking, the provisions of the Banking Regulation l0orte4e.
Act, 1949 shall also apply :

Provided also that in caseof a society,other than a Multi-

StateCo-operativeSociety, carrying on the businessof banking,
the provisions of this section shall have the effect as if for the
words "six months", the words "one year" had been substituted.

(2) In the case of supersessionof a Managing Committee,

where an Administrator is appointed to manage the
affairs of the society, he shall arrange for conduct of
electionswithin the'periodspecifiedin sub-section(1) or
sub-section (3) and handover the managementto the
incoming Managing Committee.
PART IV ] GUJARAT GOVERNMENT G AZETTE. EX..15-04-2013 t 7- l

(3) No Committee of a society shall be kept under

suspensionfor a period exceedingsix months for the
reasonsstatedin sub-section(1).

(4) In casewhere the committeeis superseded or kept under

suspension and the committee or Administrator so
appointed, shall, subject to the control of the State
Governm.entor, as the case may be, the Registrar and to
such instructionsas he may from time to time give, have
powers to exercise all or any of the functions of the
committee or of any office of the society and take all
such actions as may be required in the interest of the
society.

(5) The conditionsof service of the Administrator shall be

such as may be prescribedby the StateGovernment.".

13. In the principal Act, for section 84, the following shall be Substitutionof
substituted.namelv : -
J J
section 84 of
Guj. X of 1962.

Auditof "84. (1) The society shall cause to be audited its accounts
Accounts atleast once in each financial year and also cause it to be
of society' completedwithin a period of six months from the closureof the
financial year to which such accountsrelate:

Provided that if the society fails to get it accountsaudited

within the stipulatedperiod as stated above, the Registrar shall
cause to be audited the accounts of the society and the cost
incurred for such audit shall be recoveredfrom the societv.

(2) The society shall causeto be audited its accountsby an

Auditor or auditing firm {ro- a panel approved by the
Government or an authority authorized by the State Government
in this behalf, having required qualifications and experienceas
may be prescribed to be eligible for auditing accounts of the
societies:

Provided that the audit of the Central Co-operativeBanks

and the State Co-operativeBanks shall be conductedonly by the
Chartered Accountants from the panel approved by the National
Bank.

(3) The audit report of the accountsof an apex Co-operative

society shall bd laid before the State Legislature as soon as
possibleafter it is received.
'I'he
(4) auditor shall fbr the purpose of audit, at all times
have access to all the books, accounts, documents, papers,
 l7-8 GUJARAT GOVERNMEN'I GAZETTE, EX.,15-04-2013 IPARTIV

securities,cash and other properties belonging to, or in the

custody of the society and may summon any person in
possessionor responsiblefor the custody of any such books,
accounts,documents,papers,securities,cashor other properties
to be produced the same at any place at the headquartersof the
societyor any branchthereof.

(5) If it upp.uffi to the Registrar on an application or

otherwisethat it is necessaryor an expedientto get any account
of the society re-audited,the Registrarmay, by an order, provide
for such re-audit and the provisions of this Act applicableto the
audit of accountsof the societyshall apply to suchre-audit.

(6) For auditing the accountsof a societyunder this section,

everysoc.ietyshall be liable to pay to the alditor suchamountas
audit fee as may be prescribedby the Govemment for different
categoriesor classof societies.

(7) The Registrar shall, in consultation with the National

Bank prescribe Prudential Norms including Capital to Risk
Weighted Assets Ratio for Primary Agricultural Credit Co-
operativeSocieties.

(8) The Registrar shall, by an order, provide for the

periodical inspection by the officers subordinateto the Registrar
or by the federal society or by the financial bank, for a class of
societyunder section87 or section88."

Ame ndm entof 14. In the principal Act, in section107,-

section107 of
Guj.X of re62. (l) in sub-section(1), beforethe words "If the Registrar"the words,
figure, letter and brackets"Except as otherwiseprovided in sub-
section(1A)," shall be inserted;

(2) after sub-section(1), the following sub-sectionshall be inserted,

namely :-

"(lA) Notwithstanding anything containedin sub-section(l), in

casewhere the membersof the society, after having discharged
liabilities towards the debt and assetsof the society, upon a
resolutioncarried by three-fourthmajority of the membersof the
society present at a special general meeting called for the
pu{pose,SLto'motu resolvesto wind up the society and conveys
such resolution to the Registrar. The Registrar shall, after
disposingoff the surplusassetsin accordancewith the provisions
of section 115, cancel the registration of such society under
section20.".
PART IV ] GUJARATGOVERNMENTGAZETTE.EX..15-04-2013 n-7

(3) No Committee of a society shall be kept under

suspensionfor a period exceedingsix months fbr the
reasonsstatedin sub-section(1).

(4) In casewhere the committee is supersededor kept under

suspension and the committee or Administrator so
appointed, shall, subject to the control of the State
Gorrernmentor, as the casemay be, the Registrarand to
such instructionsas he may from time to time give, have
powers to exercise all or any of the functions of the
committee or of any office of the society and take all
such actions as may be required in the interest of the
society.

(5) The conditions of service of the Administrator shall be

such as may be prescribedby the StateGovernment.".

13. In the principal Act, for section 84, the following shall be Substitution
of

il:T:l'"'1,
Auditof "84. (1) The society shall cause to be audited its accounts
Accounts atleast once in each financial year and also cause it to be
of society' completedwithin a period of six months from the closureof the
financial year to which such accountsrelate:

Provided that if the society fails to get it accountsaudited

within the stipulatedperiod as stated above, the Registrar shall
cause to be audited the accounts of the society and the cost
incurred for such audit shall be recoveredfrom the society.

(2) The society shall causeto be audited its accountsby an

Auditor or auditing firm {ro- a panel approved by the
Government or an authority authorized by the State Government
in this behalf, having required qualifications and experienceas
may be prescribed to. be eligible for auditing accounts of the
socletles:

Provided that the audit of the Central Co-operativeBanks

and the State Co-operativeBanks shall be conductedonly by the
Chartered Accountants from the panel approved by the National
Bank.

(3) The audit report of the accountsof an apex Co-operative

society shall bd laid before the State Legislature as soon as
possibleafter it is received.
'I'he
(4) auditor shall fbr the purpose of audit, at all times
have access to all the books, accounts, documents, papers,
PARTrV l GUJARATGOVERNMENTG AZETTE.EX..I 5-04-2013 t 7- 9

15. (1), -
In the principalAct, in section14J,in sub-section A mend m entof
section 147 of
(i) after clause(f), the fbllowing shall be inserted,namely :- Guj. X of 1962.

"(f--a) any person before, during or after the election of

membersof the Managing Committeeor office bearers,
adoptscorupt practice;";

(ii)' afler clause(n), the fbllowing shall be inserted,namely :-

"(n-a) any person wilfully or without any reasonable

excuse disobeys any summons, requisition or lawful
written order issuedunder the provisionsof this Act;";

(iii) after clause(o), the following shall be inserted,namely :-

"(o-a) any officer or custodianwho wilfully fails to hand

over custody of book, accounts,records,cash, security
and other property belongingto a co-operativesocietyof
which he is an officer or custodian. to an authorised
person;"

16. (1), -
In the principalAct, in section148,in sub-section A mendm entof
section148 of
(i) after clause (0, the following clause shall be inserted, Guj. X of 1962.
narnely:-

"(f-(i) ) if it is an offence under clause(f.a) of that section,

with imprisonment for a term which may extend to six
months or with fine which may extend to one thousand
rupeesor with both;";

(ii) after clause (n), the following clause shall be inserted,

namelv :-

"(n-(i)) if it is an offence under clause(n-a) of that section,

with imprisonment for a term which may extend to six
months or with fine which may extend to one thousand
rupeesor with both;";

(iii) after clause(o), the following shall be inserted,namely :-

"(o-(i)) if it is an offence under clause(o-a) of that section,

' with imprisonment for a term which may extend to six
months or with fine which mav extend to one thousand
rupeesor with both;".
 11-r0 GUJARATGOVERNMEN'IG AZETTE.EX..15.04.2413 IPART IV

of new fi.
Insertiou In the principalAct, aftersection168'the fbllou'ingsectionshall
se ction168A in
be inserted' namely :-
Guj. X of 1962.

Transitory "168A. Notwithstanding anything contained in this Act and

provisions'amendments made in view of the Constitutional (Ninety-
SeventhAmendment)Act, 201l, the Committeesof the societies
existing imrnediatelybefore the commencementof the Gujarat Guj. l7 of 2013.
Co-operativeSocieties(Amendment)Act, 2013, shall continue
till the expirationof their term unlesssoonersuperseded.All the
orders of the Administrator or any other order passedby the
Registrar shall continue fbr the period mentioned in such order
as if passed under the arnendedprovisions. All proceedings
pending before the Registraror personauthorisedby him or any
other authority under the provisions of this Act shall stand
transferredwherever necessaryto the Registrar or any authority
accordingto the amendedprovisions of the Guiarat Co-operative Guj. l7 of 2013.
Societies(Amendment)Act, 2013, as the StateGovernmentmay
notifv.".

Govrnxrupxr CnNrnaL PRESS,G,llltgrxacln.

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