Chennai: Madras high court has directed the registrar of co-operative societies to take action against authorities, who failed to take action to disqualify members of the board including president or vice president, responsible for misappropriation of funds of societies.
“If there is any deviation on the part of the authorities concerned, the registrar of co-operative societies shall take necessary action against the authorities concerned,” said Justice D. Krishnakumar.
Following allegation of misappropriation of funds in Vandavasi Primary Agricultural Co-operative Credit Society in Tiruvannamalai district, an enquiry was conducted in 2002.
Based on the recommendation of the enquiry officer to collect the loss, the deputy registrar of co-operative societies, Cheyyar, had conducted surcharge enquiry and on February 4, 2004 ordered to collect the loss of '30 lakh from T. Veeraragavan, secretary, V. Sundara Vadivelu, attender, D. Chinnaraj, senior-clerk, P. Babu, senior-clerk, S. Saminathan, senior-clerk and V. Muthukrishnan, president.
Aggrieved, Muthukrishnan preferred an appeal and the District Co-operative Tribunal confirmed the order of the deputy registrar and dismissed his appeal. Challenging the order of the tribunal, Muthukrishnan filed the current petition.
Pointing out that the petitioner was not impleaded as a party before the Tribunal, Justice Krishnakumar set aside the order of the Tribunal and remanded the matter back to the Tribunal, which shall suo-motu implead the petitioner as a party and afford sufficient opportunity to all parties concerned, the judge added.
The judge directed the registrar of co-operative societies to file a report as to why action has not been initiated under section 36 (1) of the Act.
On queries posed by the judge, the additional registrar of co-operative societies informed that action being taken against some of the members of the society. Finally on April 26, 2017, the joint registrar and additional registrar of co-operative societies appeared before the court and produced a circular issued recently by the registrar of co-operative societies, wherein instructions had been issued to take action under section 36 (1) of the Act. Taking the circular on record, the judge gave the above directive.
