|
.jpg) History
and the Sequence of Events:
The United Cooperative House Building Society was allotted 9.40 acres of
land in Sector 68, Mohali by PUDA for construction of 364 dwelling units
on 14.03.2000. However on actual measurement of the land, the area was
found to be 8.75 acre instead of 9.40 acres. Consequently PUDA
reduced the number of dwelling units from 364 to 338.
However the managing committee of the society, headed by its president
Mr. Swaran Singh, enrolled many bogus members in the society to satisfy
their vested interests and the society produced the name "Bogus
Society" for itself. Following the revelation,
some members of the society filed a petition, which pleaded that the
list of 356 members submitted by the society to PUDA was not genuine.
The Court of the Registrar Cooperative Societies, in its orders passed
on 23rd Feb 2000, held that the membership of the society was “bogus”
and constituted a three-member scrutiny committee to ascertain the
genuineness of the members of society. On appeal, the orders of
Registrar were upheld by the Financial Commissioner, Cooperation vide
his orders dated 04.10.2000 and then by the Hon’ble Punjab and Haryana
High Court vide their orders dated 08.02.2002 in CWP No. 16968 of 2000.
After the scrutiny, the Registrar, Cooperative Societies, Punjab passed
the order dated 31.05.2002 holding 231 members of the society as
genuine. These orders were also challenged before the Financial
Commissioner, Cooperation, who set aside the same vide his orders dated
8.8.2003 and directed that the “Registrar should give an opportunity to
all the interested parties by issuance of a public notice and
carry out an
in-depth probe into genuineness of members of the society in order to
avoid any malpractice or giving a chance to the interested elements to
enroll fictitious names for their own vested interest”.
These orders of FCC were also challenged before the Hon’ble Punjab &
Haryana High Court in CWP No. 16577 of 2003. The Hon’ble High Court,
vide orders dated 20.11.2003 upheld the orders of FCC with the
directions that no member of the Society is to be condemned unheard and
full opportunity be afforded by the Scrutiny Committee to the members to
present their claims/objections. The Hon’ble High Court, further
directed the scrutiny committee to submit its report latest by
31.07.2004.
In March, 2004 the scrutiny committee comprising of three
senior most Additional Registrars carried out the detailed scrutiny of
599 members as per the society records and only 286 members were found
to be genuine. The list of 286 genuine members was notified by the
Registrar, Cooperative Societies vide its detailed orders dated
31.07.2004. Other members, most of them transferees, were found to be
bogus, since these persons never replied to repeated public notices and
registered letters sent to them by the scrutiny committee returned
undelivered.
However, while
the list of 599 members was being scrutinised by the Cooperative
Department, the President and Secretary of the society conspired with
the Contractor and sold 109 flats in the open market between Jan to Mar
2004 after charging huge premiums from them following increase in market
prices of flats. The purchasers of these flats were substituted as
members of the society against the non-existent/bogus members.
Most of these persons were enrolled and charged directly by the
contractor and they were even committed the floors on which they will be
allotted the flats. And obviously, higher premiums were charged for
better floors.
The scrutiny committee in its report dated 31.07.2004 also recorded on Page 36 of its report that :
“It is
strange that while scrutiny committee was examining genuineness of
originally enrolled members, the Managing Committee of the society was
not only enrolling new members but was audacious enough to delete
membership of a large number of originally enrolled members. These
newly enrolled members have then been put into the shoes of old
non-genuine members who have not come forward before the Scrutiny
Committee to establish their genuineness. There is a serious question
mark on this action of the managing committee of the society. Almost all
the members whose place has been shown taken by the new members are
those who had not responded to the public notices etc. and have thus
been declared as non-genuine by the Scrutiny Committee”
Page 36 (540 kb),
Complete report (39 Pages - 24 MB Size)
After the orders of Scrutiny Committee, the 286 members declared genuine
by the committee, were issued the demand notices on 09.09.2004
<click here to see (670
kb)> to
deposit the land cost amounting to Rs. 2.35 Lacs per member within one
month. However
without waiting
for any payments from genuine members, on 12.09.2004 itself, the
society management arbitrarily allotted the flats with their own whims &
fancies. Most of the allotments were given to the near and dear
ones or to those persons from whom hefty premiums were charged without
any consideration of genuineness of their membership. No notice
was issued to the members/Registrar regarding any meeting/draw and no draw of lots
was held. The flats were allotted as per the premiums charged from
the person or to the near and dear ones in gross violation of bye-laws, rules &
regulations. The office of the Registrar Co-operative Societies
and members of the society were not even informed of the date of
allotment, what to talk of their being present at the allotment. Cash receipts amounting to a total of Rs. 31 Lacs were issued in his own
favor and in the favor of his near and dear ones by Mr. Swaran Singh on
11.09.2004 to make them eligible for allotment of flats {1. Swaran Singh
(Self) - Rs. 30000 to 235000, 2. Gagandeep (Son) - Rs 25000 to 235000,
3. Kulbir Singh (Nephew) - Rs 40000 to 235000, 4. Balbir Singh (Nephew)
- Rs 40000 to 235000 and many more}, while many genuine members who had paid much more
money than Mr. Swaran Singh himself were not even spared an opportunity
to pay the balance money and were declared ineligible/defaulters.
It is however learnt that the cash
amount of Rs 31 Lacs, for which the receipts were issued on 11.09.2004
was never deposited in the bank accounts of the society.
Similarly, many other persons were issued receipts in back date to make
them eligible for allotment of flats over genuine members. Some
allotments were made to the persons who were not even primary members of
the society. While allotting
the flats, most of the genuine members were left out and were neither
asked to deposit any money nor allotted any flat at all,
thereby cheating them and depriving them of their legitimate right of
getting their share in the society. In fact the flats were sold in the
market just like private builders and higher premiums were charged for
flats at prime locations. Further the perspective buyers
were even allotted their committed flats with least respect or concern
for the rules, regulations and law of land.
On receiving complaints about this, the then Financial Commissioner
(Coop) vide his orders dated 04.02.2005 directed the Registrar to
Constitute a Scrutiny Committee under the chairmanship of Sh. Raminder
Singh I.A.S (Addl. Registrar Admn.) for verifying the genuineness of 109
members. Further, the orders also directed the managing committee
of society not to induct any new members and not to make any illegal
allotments to individuals. The Scrutiny Committee issued a notice
dated 25.02.2005
<click here
to see the notice (400kb only)>, which was carried by local newspapers on
28.02.2005, calling these 109 members to file their claims
within 15 days i.e, upto 15.03.2005.
However, in the meantime the managing committee also managed to get
occupancy certificate of 104 flats from Punjab Urban Planning and
Development Authority (PUDA) on 03.03.2005,
which was issued by PUDA in gross violation of clause 10 of its own land
allotment letter No. PUDA-A-4/2000/76 dated 14.03.2000. It is further
pertinent to note that occupancy certificate was issued by PUDA inspite
of the fact that the society was a persistent defaulter on account of
payment of land cost.
The 286 genuine members had deposited an amount to the tune of Rs.
15 Crores and 210 newly inducted members had deposited an amount of Rs.
11 Crores besides the premium, which was paid underhand. However
it is learnt that a major chunk of money collected from
members for payment of land cost to PUDA was channelised to buy
properties and land at Dera Bassi and elsewhere through advance
payments worth crores of rupees to the contractor M/s U. T. Builders by Mr. Swaran Singh.
However there
was
a constant default on account of payment of land cost to PUDA and the
members had to bear penalties and penal interest of crores of rupees
imposed on the society by PUDA on account of payment defaults. In
this regard, Registrar, Co-operative Societies Punjab vide his letter
No. 8702 dated 01.07.2005 ordered an enquiry headed by Superintending
Engineer (Housefed), Punjab, to ascertain the actual cost of flats
being constructed by the society and alleged excess payments made to the
contractors. After repeated requests to the managing committee for
submitting the requisite record, S.E. (HOUSEFED) submitted an incomplete
report on 09.11.2006 <click
here to see the report>
which clearly mentioned that the managing committee has not co-operated at all
in the enquiry and has not supplied any record. It was further
mentioned that from the available record and measurements taken from the
site it is evident that the contractors M/s ADD ON Builders have
executed the work of Rs. 7.60 Crores and M/s U.T. Builders have executed
the work of Rs. 10.22 Crores till date. While as per the
information gathered from the Office of Registrar Co-op Societies,
the managing committee has made payments
of Rs. 8.95 Crores and 17.62 Crores to M/s ADD ON Builders and M/s U.T.
Builders respectively. This means that an advance payment to the
tune of Rs. 8.75 Crores was made to the contactors whereas there was a
consistent default of payment to PUDA.
However inspite of the consistent payment defaults, the occupancy certificate was issued by PUDA and
after getting the occupancy certificate.jpg)
Mr. Swaran Singh handed
over physical possessions of the half built flats to the illegally
enrolled members whose
fate was yet to be ascertained by the scrutiny committee while deserting
the genuine members of the society who had actually paid for the
construction of flats over the years. These persons
were further advised that they should immediately occupy the flats and
also complete the construction and get the furnishing work done so that
it becomes difficult to oust them by the authorities. After moving
into the flats, the residents also had a very tough time because at that
time the society didn't even had a water and sewerage connection.
A temporary electricity connection taken by the builder for construction
of flats was extended to the residents and they had to pay commercial
rates for electricity for many months. It is
further pertinent to note that the term of the managing committee had
expired on 04.03.2005 and Assistant Registrar, Mohali was appointed
administrator of the society by the Registrar, Cooperative Societies,
Punjab. But the self styled Honorary Secretary, Mr Swaran Singh, issued the allotment letters and handed over
.jpg) illegal physical
possessions of flats to some 39 members on 06.03.2005
with the convenience of newly appointed administrator. However
when some genuine members of the society tried to ascertain their status
from the Honorary Secretary Mr. Swaran Singh, they were defrauded,
misguided and were given to understand that they have been declared
as in-genuine by the scrutiny committee constituted by the Registrar and therefore their shares have
been forfeited. The Honorary Secretary even refused to deposit of
installment amount from the members. Shocked at this, the members
reported the matter to Director General of Police, Punjab and the police
enquiry in the matter revealed that Mr. Swaran Singh had allegedly sold
flats of the Society to Non-members following a rise in their market
prices. Following the enquiry report an FIR was lodged against Mr.
Swaran Singh and the CIA staff, Ropar arrested Swaran Singh on
18.03.2005 under Sections 406, 420, 468, 471 & 120-B of the IPC. <Click here to
see the copy of
news item published by local newspapers (50kb only)>
He was however later released on bail and the case (FIR No. 83 dated
17.03.2005) is gathering dust
with the police department since last more than 20 months.
However, when this news was carried by the local News Papers,
the Additional Registrar (Admin), Co-op Societies, Punjab, issued the following warning to
the Administrator of the society (Asstt. Registrar, Co-op Societies, Punjab) vide his
letter No. Addl RCS (A)/3643 dated 24.03.2005
"The
Interim orders of worthy F.C.C., dated 04.02.2005 have already been
conveyed to you by the office of RCS, Punjab, Chandigarh for strict and
meticulous compliance. However it has come to my notice that while
the process of scrutiny as per the interim orders of worthy F.C.C. is
still under progress by the scrutiny committee constituted for the
purpose (chaired by undersigned), grave malpractices such as illegal
allotments and giving unauthorised possessions to the individuals whose
fate is yet to be ascertained (still under scrutiny) are still
continuing. This may further aggravate/complicate the problem.
Therefore you are hereby directed to engage the services of a private
security agency for ousting the unauthorised people till the final
decision is taken by the Government in this case as the matter is
already in the notice of the Govt. You are directed to comply with
promptly and it shall be your personal responsibility."
Click here to see
the true copy of
the letter (32kb only)
In addition to the above the following NOTICE was published in the
newspapers and was also placed at the construction site of society to
bring these gross irregularities in the notice of members and general
public being misled by the managing committee (Picture 1)
“Common
Public is intimated that as per the orders of Hon’ble Financial
Commissioner, the office of Registrar Co-operative Societies, Punjab is
 conducting a probe into the membership of the flats being constructed by
the United Cooperative House Building Society Limited, Mohali and Sh.
Dalbir Singh, Assistant Registrar, Co-operative Societies, Ropar has been
appointed as the Administrator of the society after the expiry of the
tenure of its managing committee. The previous managing committee is
offering plots/flats and possession in an unauthorised manner, which is illegal. Therefore the
general public is intimated that no person should try to occupy or do
any additional construction in any flat because the flats shall be
allotted to the eligible members after final decision by the Government.
Legal action shall be taken against the person who shall violate the
above orders. – By Order Registrar, Cooperative Societies, Punjab, Chandigarh.”
(Disclaimer : The above
matter has been translated from Punjabi. Although all efforts have
been made to reproduce the exact translation but any mistake on this
account shall be purely coincidental. No legal claim is made
regarding the accuracy of the translation. The original photograph of
the NOTICE in Punjabi is also placed for ready reference)
Following these developments,
there was a great uncertainty and fear amongst the members of the
society. Under these circumstances some members of the society took initiative to assemble and guide the society members under the name
and style of UNITED ACTION FRONT.
However, fearing action from
the authorities, 39 beneficiary members to whom illegal possessions were
offered by Swaran Singh, filed 3 different petition in
the Civil Courts of Kharar restraining the Society from ousting them
from the flats. The Hon'ble court ordered a status quo
to be maintained till the decision of petition.
However again making mockery of the court orders, Mr. Swaran Singh
issued many more possession letters in back date and by the end of 2005
about 80 flats stands occupied. Again the official of the
Cooperative Department are mock spectators and most of the concerned officials were
found speaking the
language of culprits when they were asked to take action against these
illegal occupants. The officials of the department were physically
taken to the site by the Adhoc Committee members and were shown that
more than 80 flats stands occupied in violation of the court order.
However, no action was taken by the department and as a result some
beneficiaries of the illegal allotment have even started renovating the
flats in the next block of the society for which the possession letters
have still not been issued by the society because of the stay granted by
the Hon'ble Court.
In the meantime, the Scrutiny Committee summoned 109 members on 08.04.2005 out of which
only 67 members appeared before the committee while other 42 were again
found to be non-existent.
The Scrutiny Committee submitted its report on 22.04.2005, with the
following findings and recommendations:
“The scrutiny of new members
enrolled between January and March 2004 was carried out by the Scrutiny
Committee. Out of 109 members, only 62 members
appeared before the committee on 08.04.2005 and every member was
asked to produce the proof of his identity. Every member produced the
documents. All 109 members were enrolled between January to March 2004
and almost all members were enrolled by way of transfer of membership of
an old member. Column No 7 of the enclosed performa shows the
membership number of the new members. The details of the old member
against whom new member has been enrolled is also given at Column No 5
of the performa. From the analysis of the
record, it has been noticed that none of the new members have been
enrolled against those members who were declared genuine (286) by the
Registrar, Cooperative Societies, Punjab in his orders dated
31.07.2004. Rather those members who were declared non-genuine/bogus by
the Registrar, Cooperative Societies, Punjab in his orders dated
31.07.2004 have been substituted to enroll these new members. Although
all these members have paid an amount ranging from Rs. 1 Lac to 12 Lacs
for getting the flat, but still these newly enrolled members cannot be
declared as genuine members. Further investigations have revealed that
even after March 2004 and till February 2005, the President and
Secretary of the managing committee has enrolled many new members after
taking huge money from them. The scrutiny of these members is
being done separately by this office.
In
compliance of Hon’ble Financial Commissioner, Cooperative orders dated
04.02.2005, the above report is submitted and it
is reiterated that 109 new members enrolled between January and March
2004 does not qualify to be the genuine members of the society.”
Click here to
see the copy of the original report (190kb only)
(Disclaimer : The above
matter has been translated from Punjabi. Although all efforts have
been made to reproduce the exact translation but any mistake on this
account shall be purely coincidental. No legal claim is made regarding
the accuracy of the translation. The original version of the document in
Punjabi is also placed for ready reference)
However,
while the department was contemplating the list of 109 members, the
president and secretary of the society enrolled yet another 101
members again on huge premiums. Further the self-contained and
detailed reports of these scrutiny committees had made it amply clear
that the Managing Committee had intentionally enrolled the bogus members
so that these shares could be sold in the open market at a later date to
earn premium at the cost of genuine members. However when the Hon’ble
High Court ordered the detailed scrutiny of membership, the President
and Secretary of the society immediately transferred some of these
shares in favor of new members, while some other bogus names were again
incorporated, so that these flats could be sold at still higher premiums
at a later date. The same was reflected in the second scrutiny when
only 62 out of 109 newly enrolled members appeared before the scrutiny
committee. However, all these self
speaking findings of scrutiny committees and gross misconducts by the
managing committee making mockery of all rules/regulations and law of
land failed to convince the new Financial Commissioner (Coop), S. K.
Sinha who vide his orders dated 26.07.2005, not only declared all 109
members as genuine contrary to the recommendations of scrutiny
committees constituted by his predecessors but also regularised the
newly inducted 101 members without any verification thereby annulling
the long drawn process of verification of genuineness of membership. Mr. Sinha in his orders dated 26.07.2005 said as under:
“The
Managing Committee is the competent to enroll new members and this has
been so held even by the F.C.C. in his order dated 26.12.2003. I find
that there is no malafide in enrolling the new members and the new
members were enrolled in the interest of the Society. The genuineness
of the members was to be considered of the members which were subject
matter of litigation before the Financial Commissioner and the High
Court. There is no restriction on the rights of the Managing Committee
to limit the number of members or enroll new members under the Act,
Rules or the bye-laws. Although as per the committee report, they have
been enrolled as new members in place of non-genuine members but the
fact remains that they are the newly enrolled members.
They have paid interest of the society by the managing committee to pay the
claims of PUDA for the land allotted to them, which is the objective of
the society and which they were fully competent to do so. Therefore, I
hold the newly enrolled 109 members as also the subsequent enrolment on
or before 04.02.2005 to be genuine and in the interest of the Society.”
Click here to see the copy of the order (3.12 MB)
The orders took the total membership of society again to 286+109+101 =
496 against 338 flats available with the society.
The orders of Mr. Sinha
regularised all misdeeds of the managing committee thereby providing
another impetus to their vested interests but the destiny of genuine
members who have not paid hefty premiums to the managing committee members
was put on stake. Many genuine members who have paid all their dues
demanded by the society so far, have either not been allotted any flats
or were issued allotment letters of flats on fifth and sixth floors that
do not exist at all as per the approved plan, in order to accommodate
those from whom huge premium/bribes have been charged thereby
systematically robbing the genuine members of their flats. Some of the
members when reported this matter to Registrar, Cooperative Societies,
Punjab, it was confirmed that the allotted flat is non-existent and the
Assistant Registrar suggested
that a criminal police complaint should be lodged against the President
and Secretary of Society <click
here to see the letter (40kb only)>. Pursuant to this many
members have lodged criminal complaints with Superintendent of Police, Mohali,
Punjab against the
President of society Mr. Swaran Singh, however no action has been taken
by the Punjab Police even months after the complaints were filed.
Another complaint was filed under rule 80 with the RCS, wherein it was
pleaded that the allotments made by the society vide resolutions dated
12/09/2004 and 16/02/2005, were contrary to the directions of the
Registrar. It was pointed out that no notice, no agenda, no time, no
date, venue etc was given to members/Registrar for allotment of flats.
No draw of lots was held. Allotment letters did not bear dispatch no. &
date and resolutions did not indicate father’s/husband’s name or
membership no. etc thus creating confusion. Some flats were not allotted
at all, whereas some were allotted twice. Taking note of the above
irregularities, the
Court of Deputy Registrar (Legal), passed the following orders on
27.12.2005.
"I have
heard the council for the petitioners, pursued the petition, reply from
respondents and the record of the society was also checked by me and
some of the petitioners who appeared before me with their council.
Since the entire contents of the petition stands admitted in the written
reply of the respondents and the record of the society further proves
that the resolutions have been passed in the violation of Bye-Laws as no
notice was issued to the members and the Registrar Cooperative Societies
Punjab about the General Body Meeting, before passing resolutions dated
12/09/2004 (Annexure P2) and 16/02/2005 (Annexure P3) by the Society.
Flat No 108, 122, 123 have not been allotted at all. Flat No 124, 137,
157, 172, 197 and 434 have been allotted twice by the Society.
Resolution Annexure P-2 does not indicate Father’s/Husband’s Name and
membership No and similarly resolution Annexure P-3 does not indicate
membership No and further resolution have shown cutting without
authentication. On page 1 of Annexure P-2 in column no 3, there are 14
members shown, whereas flats allotted to them are 13 only. Similarly
flat No 117 and 118 have been allotted to non-members.
This clearly shows that the previous managing
committee has passed resolutions, made allotments to his near and dear
ones for extraneous considerations without serving proper notice under
rule 80 of the rules laid. The allotment letters does not
bear the date and dispatch nos.
Further, unauthorized allottees have been allowed un-authorised
possession of the flats. Some allottees who have not even paid cost and
further installments have also been allotted flats.
In view of
above produces record, evidence and factual position, I hereby set aside
resolution Annexure P-2 dated 12.09.2004 and Annexure P-3 dated
16.09.2005 passed by the respondent No 5 – Society under rule 80 of the
rules laid. The competent authority of the society is directed to
initiate legal action against unauthorized occupants as per law. The
Society may take further steps for re-allotment of flats in accordance
with law to the members of the Society."
Click here to see the true copy
of the order (93kb only)
The Supervisory Committee formed by the Registrar, Cooperative Societies
to manage the affairs of the society after completion of the tenure of
its managing committee, also passed the following orders on 04.12.2005.
"Complaints
from many members of this society have been received regarding the
allotment of the flats which was made by the previous Managing Committee
on 12.09.2004.
This process of allotment undertaken by the previous
managing committee in the Resolution of Annual General Body meeting is
not in conformity with the provision of bye-laws of the society,
instructions of RCS Punjab, principal of natural justice and fair play
that is why many members are agitating against the manner in which the
allotment on said date was done. No draw of lots was undertaken in the
process of allotment of flats to the members. Thus making whole process
of allotment arbitrary, discriminatory and an element of subjectivity.
Assistant
Registrar Coop Societies, Mohali on the instructions from RCS Punjab
issued a notice U/S 10A of the Punjab Coop Societies Act 1961 for
amendment of bye-laws of the society which envisaged that RCS or his
nominee at the time of allotment has to be present to maintain
objectivity. This notice was received by Shri Swaran Singh the then
Honorary Secretary of the society on 13.07.2004, but this
information was knowingly
suppressed to pursue their vested interests to have the allotment done
in a subjective and in an arbitrary manner to give maximum benefit to
few selected members.
The PUDA
had initially allowed to the society to construct 364 dwelling units in
the allotted 9.40 acres of land. On actual measurement of land the area
of land was 8.75 acre instead of 9.40 acre. PUDA had reduced the number
of dwelling units from 364 to 338. But
the actual number of flats got allotted by the Managing
Committee was more. The Managing Committee allotted the flats on fifth
and sixth floors whereas it was allowed to construct four floors only in
addition to the ground floor.
Keeping in
view the aforesaid infirmity in the manner of allotment got done by the
previous managing committee, the allotment is
hereby cancelled as same is not in confirmation with the provisions of
bye-laws, instructions of R.C.S. Punjab, principal of natural justice
and fair-play."
Click here to
see the true copy of the order (128kb only)
However, Mr. Swaran Singh, through some beneficiary members challenged
the orders of the Deputy Registrar (Legal) and Supervisory Committee in
the court of Financial Commissioner (Coop). In this regard, another 15
aggrieved members also submitted their applications to F.C.C. for
impleading as party in the case. But
Sh.
S. K. Sinha, F.C.C., didn’t even allow the grieving members to enter his
court room on 23.01.2006 despite the fact that their applications for
impleading as party in the case was fixed for hearing in the case. The
F.C.C. “dismissed” the orders of Supervisory Committee vide his
following orders:
"I have
heard the learned counsel for the petitioners and gone through the Act
and record. There is no provision in the Act for appointment of a
“Supervisory Committee” at all. Therefore, the “Supervisory Committee”
appointed after the expiry of the term of appointment of the
Administrator is non est and all its acts are therefore null and void in
law. However, since elections of the Managing Committee of the society
is to take place on 15th and 16th of February
2006, the petitioners who claim to be member of the society may take
their grievance to the new Managing Committee and get them resolved."
Click here to see the true
copy of the order (133kb only)
The orders
of F.C.C not only provided legal cover to the illegal allotments and
possessions in the society but sensing the situation and support of
illegally enrolled members, the F.C.C ordered the elections of society
to be held within 20 days, dismissing
all objections of bogus memberships and gross irregularities etc. Further, the orders passed of
23.01.2006 were not dictated and were actually issued only after the
formation of new managing committee to avoid any legal hassles in the
election process. The
members of Adhoc Committee made various representations against this open
loot to the highest offices in the Government of Punjab. A
delegation of members from Adhoc Committee even met the Chief Minister
of Punjab to explain the case in detail and handed over a representation
requesting postponement of elections and independent enquiry into the
matter. Based on the representation an enquiry was marked by the
Chief Minister, <click
here to see the letter vide which enquiry was marked by CM
(27kb
only)> but
absolutely no action was taken by the cooperative department or any
other authority in Punjab Government on the issue and the elections were
declared as per the wishes of culprit committee members and orders of
FCC.
In a
separate petition, the orders of the Deputy Registrar (Legal) dated
27.12.2005, were also “stayed” by F.C.C., Mr. S. K. Sinha, with the following orders:
"Presented today, heard operation
of the impugned order dated 27.12.2005 passed by Deputy Registrar (L)
Coop Societies, Punjab is stayed. Notice be issued to the respondents.
Record be summoned. To come up on 09.03.2006 for completion of
service."
Click here to see the
true copy of the order (49kb only)
While the
orders were passed on 23.01.2006, they were actually issued after
elections of the society i.e, on 06.03.2006 for the reasons better known
to Mr. Sinha. Following the stay, the
case was pending with the Special Secretary (Cooperation), Punjab,
Chandigarh for around eight months and just when
it was about to reach its logical conclusion, the political bosses in
the co-operative department again intervened to provide relief to the
corrupt and culprit committee members and the case was shifted to
Financial Commissioner (Co-op). The lackadaisical approach taken by the
department is providing sufficient time to the corrupt managing
committee members to implement the illegal allotment thereby making it
impossible to correct it and also to temper the record in their favor.
Taking full benefit of this opportunity, the President of the Society
Mr. Swaran Singh, is ready to give physical possessions of another 104
flats as per the illegal allotments.
Many members have even started furnishing these flats in the new blocks
and this is going to further aggravate/complicate the already terrible
problems that the society is facing owing to the misdeeds of its
managing committee members in alliance with corrupt officials.
Pursuant to the orders of F.C.C for holding the elections, the date for
elections was fixed as 15/16.02.2006. Further, the members of
the Adhoc Committee and many other suffering members of the society made representations to the Returning Officer and Election Manager
that old managing committee members, who were found
indulging in grave malpractices such as selling the society flats,
giving illegal possessions etc. should not be allowed to contest the
elections. It was also brought to their notice some of the members
contesting the elections
specifically Mr. Swaran Singh and his nephew Mr. Balbir Singh have
not even deposited the minimum requisite amount to be
eligible for voting as per the decision taken by the department. It was
also brought to their notice that some F.I.Rs are also pending against
these members with the police department in view of their alleged
cheating the members and other grave malpractices in the society.
But the officers of the department didn't even bother to go into the
merits of the objections being raised and allowed the culprit office
holders of the previous managing committee to contest the elections.
Following this decision of election officers and the support of
illegally inducted members, the old managing committee led by Mr. Swaran
Singh, again managed to secure majority seats (4/7) in the elections
and
all their
misdeeds such as selling the flats in open market, illegal possessions,
grave financial irregularities etc. continue unabated.
However, when the members of society again raised their voice against
the irregularities committed by these members during their previous
tenure, the Asstt. Registrar, Mohali issued a simple letter No. 567-73
dated 23.02.2006 to the new committee requesting them to take police
action against the culprits <click here to see the
letter>. He had probably thought that the culprits will be
kind enough to get themselves booked. The Adhoc Committee members thereafter raised their objections in the court of
Registrar, Co-op Societies, Punjab through a petition, which is pending in the court of Deputy Registrar
(Legal) since more than ten months.
In the general body meeting held on 09.04.2006, the managing committee again tried to kill the law
by passing certain sub-judice and controversial matters in their favor such as illegal
allotments, possessions, audit report etc. etc. by misguiding the house.
All agendas and their decisions were pre-written in the proceeding book
as it suited the managing committee and the members were misguided to
sign on the proceeding book as to mark their presence in the meeting.
Thereafter the proceedings were used as if all the members have
accepted the misdeeds of the managing committee. After the meeting, the members of the
society were asked to deposit more money with the society without any
criteria through pick and choose inspite of the fact that there were no
flats left for allotment to genuine members. No documents were supplied
to genuine members to raise bank loans or arrange the money in spite of
their repeated requests so that they could be declared as defaulters at
a later date. Some of the members when raised objections to this
and asked for the copies of proceeding books were turned down. In
fact the copies of many controversial proceedings are not being supplied
even to the office of Assistant Registrar, Co-op, Mohali in-spite of his
repeated written requests to the society president Mr. Swaran Singh.
Taking
note of these serious irregularities being committed by the new
managing committee, the Deputy Registrar, Cooperative Societies, Ropar,
vide his following orders dated 24.05.2006 placed the managing committee
under suspension and provided them an opportunity under Section 27(1) to
explain their position on the irregularities listed in the orders by
15.06.2006.
"Assistant Registrar Coop Societies Mohali vide his
letter No. RKI/ARCS/Mohali/1230 dated 11.05.2006 has reported that the
managing committee of the United Coop House Building Society Ltd, Daon
at Mohali is committing the following serious irregularities that:
1. The
Committee vide letter No. 567-73 dated 23.02.2006 was directed to take
action against the persons/members and committee members with connivance
of whom the possessions of flats were given illegally. Further the
committee was directed to get the record completed and produce to the
auditor for audit, about which the managing committee of the society did
not taken action.
2. As
the main reason of the dispute in the society was due to illegal
enrolment & transfer of shares, the managing committee vide letter No.
756-58 dated 09.02.2006 was directed not to enroll/transfer any member
share without the written prior approval of ARCS Mohali. This direction
was issued to check the mal-practice of the society’s managing committee
as was done by the ex-committee. But the president of the Society Sh. Swaran Singh by writing his letter No. Spl-4 dated 16.03.2006 that the
committee is competent to enroll/transfer members and there is no need
to get the approval of ARCS. By doing so, the managing committee of the
society cleared its way to repeat the same irregularities committed by
the previous committee.
3. PUDA
approved construction of 338 flats but without getting the completion
certificate from PUDA, 438 flats were allotted in the general body
meeting dated 12.09.2004 and in this way Sh. Swaran Singh, President of
the society and the then honorary secretary of the society misguided the
whole house of the society by not explaining the rules & regulations.
The Assistant Registrar, Coop Societies Mohali reported
that the most of the members of the Committee are the supporters of Sh.
Swaran Singh, who are not ready to take action against the committee
members who committed irregularities of the previous managing
committee. Further he recommended to remove the managing committee of
the society.
On the recommendation of the ARCS, Mohali, I am of the
view that the managing committee is persistently making default and is
negligent in the performance of duties imposed on it by act, rule and
bye-laws. Before removing the managing committee under section 27(1)(a)
I Balbir Singh Sohi, Deputy Registrar, Coop Societies, Ropar exercising
the powers of the Registrar Coop Societies, Punjab, Chandigarh provide
opportunity under Section 27(1), to explain its position on the points
mentioned overleaf by 15th June 2006. In case the reply is
found un-satisfactory or is not received in the stipulated time the
action shall be taken under section 27(1)(a) & 27(7).
Keeping in view, the general interest of the members of
the society, I Balbir Singh Sohi, Deputy Registrar, Coop Societies,
Ropar exercising the power of Registrar, Coop Societies, Punjab,
Chandigarh suspend the managing committee of the United Coop House
Building Society Limited, Daon at Mohali, under Section 27(2) of the
Punjab Coop Societies Act 1961, and appoint Sh. Gurdip Singh Assistant
Registrar, Coop Societies Mohali as the administrator of the society.
The Administrator is directed to perform his duties in
accordance to the act & rules and as per directions issued by RCS,
Punjab by time to time."
Click here to see
the
true copy of the order (103kb only)
However instead of resolving the irregularities or providing any
explanation to the observations of Deputy Registrar, the managing
committee challenged his orders in the court of Addl Registrar (Credit).
The Addl Registrar (Credit) provided the managing committee another 15
days to resolve the irregularities and file its reply
<Click here to see the
orders>. However the managing committee again challenged
the orders in the court of Financial Commissioner
(Cooperation), Punjab, who vide his following orders dated 21.08.2006 stayed the
orders of Deputy Registrar and restored the powers of Managing Committee.
"I have considered the argument advanced by the counsel and have gone
through the record of the case. I find that the order of the Deputy
Registrar dated 24.05.2006 vide which the Managing Committee has been
suspended to be very perfunctory. In a quasi judicial order, the Deputy
Registrar is expected to pass a well reasoned speaking order clearly
bringing out the irregularities (if any) and his findings on such
irregularities. A mere reading of the impugned order of the Deputy
Registrar does not give any reason for taking such a drastic action
against a legally elected managing committee of a cooperative society.
Even order dated 26.06.2006 passed by the Additional Registrar in the
appeal gives no tangible grounds as to why he has confirmed the order of
the Deputy Registrar regarding suspension of the Managing Committee.
The order dated 26.06.2006 of the Additional Registrar is very sketchy
and non speaking. Accordingly, the Deputy Registrar is directed
to pass a
reasoned and self-speaking order after considering the reply filed by
the managing committee to the notice issued to it under Section 27 of
the Act. The Deputy Registrar may also hear Sh. Basant Singh, who has
filed an application before this court or any other member of the
society who may like to be heard in the instant case. The Deputy
Registrar will pass a final order under section 27 of the Act within a
period of two months. In the mean time, the petitioners (managing
committee) will neither enroll any new member nor make any fresh
allotment of the flats being constructed by the society."
Click here to see
the
true copy of the order (187kb only)
It
is however learnt that the Deputy Registrar and Assistant Registrar were
advised not to take any further action on the issue and
accordingly no further action has been taken by them even months
after the orders of Financial Commissioner (Cooperation).
Further,
the Chief Auditor (Cooperation), Punjab has never been able to complete
the audit of society due to non-availability of the accounts/records in
the society while the auditor namely Mr. Darbara Singh, who is always
deputed by the department to carry out the audit of this society has
never initiated any action to obtain the necessary record or to set the
society’s accounts/records in order. However, the half baked interim
audit report for the financial year 2004-05 has pointed out grave
irregularities in the society, some of which are as under:
1. Member’s
register and their payment accounts are incomplete.
2. List
of members to whom the possessions were given was not available, whereas
39 possessions were given as per proceedings in violation of rules.
3. 39
members of the society were given concession of Rs. 1 Lac each in the
cost of flat without any justification.
4. Advance
payment to two builders amounting to nearly 5 crore made without any
justification.
5. No
stock register of material / no tenders called for purchase of material.
6. Committee
purchasing material such as Iron and Cement at its own level but no
bills were available, only payments have been made.
7. Many
more such irregularities and last but not the least "No
action taken on the audit report of 31/03/2004".
Click here to see the
true copy of the audit report (94kb only)
However,
it can be easily comprehended that in such circumstances when the
officials and politicians of the Department of Co-operation have joined
the culprits in this open loot and the genuine members and being thrown out
of the society and their life time
savings are on stake because of their
inability to bribe the culprit managing committee
and corrupt officials of the cooperative department, hardly anyone is
bothered about the financial irregularities in the society.
It is an open belief in the society and in the market that Mr. Swaran
Singh is the sole owner of the society and can do anything whether as
per law or beyond. It is also widely accepted by his near and dear
ones that he has purchased all concerned officials and politicians of
the cooperative department and all of them are his Yes-Men, which is
also evident from the approach of the top officials of the department. In
view of the above, the
cooperative department of Punjab Government seems incapable of taking any
action to stop this open loot and the managing committee of the society
continues to defraud the genuine members of the society making mockery
of all laws, rules and regulations.
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