Delhi High Court
The Yogi Raj Krishna Cooperative vs Delhi Development Authority & Anr. on 25 July, 2008
Author: Manmohan Sarin
Bench: Manmohan Sarin, Veena Birbal
* HIGH COURT OF DELHI
% Date of decision: August 25, 2008
+ WP(C)No.10066/2004
The Yogi Raj Krishna Cooperative
Group Housing Society Ltd. ...Petitioner
through
Mr. Rajesh Tyagi with Ms. Aparna
Bhardwaj, Advs.
Versus
Delhi Development Authority & Anr. ..Respondents
through
Mr. K.C.Mittal, Advocate, Amicus Curiae with
Mr. Sujeet Kumar Singh and Mr. Sumit
Babbar, Advocates.
Mr.K.K. Rai, Sr. Advocate with Mr.Sanjay
Kumar Pathak for applicants in CM
Nos.7568/08, 15387/06 & 6134/06.
Mr. Sandeep Kumar for Bhagwani CGHS.
Mr.R.N.Bhardwaj for ISI CGHS,Ram Dev
CGHS, Joint Living CGHS, Sarvottam CGHS.
& Rose Marry CGHS.
Mr. Fanish Kumar Jain for Lokpriya Vihar
CGHS
Ms. Rekha Palli for the applicant in CM
No.13286-87/06 and for Chinar CGHS.
Mr.Sanjeev Ralli for Jan Vikas CGHS.
Mr.Harish Gulati with Mr. Anindya Malhotra
for CBI with Mr.A.K.Malhotra, DIG, CBI.
Mr. V.K. Tandon for Registrar, Cooperative
Societies
Ms. Sujata Kashyap for DDA
Mr.Sanjay Katyal for UOI.
Mr. U.K. Worah, Registrar, Cooperative
Societies.
Coram :
Hon'ble Mr.Justice Manmohan Sarin
Hon'ble Ms.Justice Veena Birbal
(1) Whether reporters of local paper may be
WP(C)No. 10066/2004 Page 1 of 14
allowed to see the judgment? Yes
(2) To be referred to the reporter or not? Yes
(3) Whether the judgment should be reported Yes
in the Digest ?
Manmohan Sarin, J
CM No.11864/2006 (by Vishrantika Coop.Group Housing Society)
CM No.11866/2006 (by New Ekta Coop.Group Housing Society)
CM No.2840/2007 (by M.V.Janhit Coop.Group Housing Society)
The applicants/Societies contend that they have a vital interest
in directions that may be given in this writ petition and, therefore,
they may be impleaded in this writ petition. We may note that
these Cooperative Group Housing Societies have been present in
these proceedings for quite sometime. The said applications are
allowed and the societies are formally impleaded as parties. Liberty
given to these societies to move the court for appropriate directions
depending upon the stage of completion of construction of units in
their respective societies.
Petitioner is directed to file amended memo of parties on
record.
CM No.1637/2006 (by applicant-Shekhar Vashisht)
CM No.6134/2006 (by members of Jai Bhagwan Coop.Group Housing
Society)
CM Nos.13286-13287/2006 (by members of Chinar Coop.Group
Housing Society)
WP(C)No. 10066/2004 Page 2 of 14
CM No.15387/2007 (Association of Coop.Group Housing Society
Affected Members (AOCAM)
CM 7157/2005 (by Nav Rachna Resident Welfare Assn.)
The above CMs. are moved by members of the respective
Societies and an association of affected members of a society. These
applicants are permitted to intervene in the matter.
WP(C)No.10066/2004
1. On 16th June, 2004 petitioner i.e. Yogi Raj Krishna Cooperative
Group Housing Society filed this petition contending that DDA had
fixed cut-off date as 31.10.2003, for allotment of land to the
societies shortlisted for that purpose. It was contended that much
after the cut off date, respondent no. 2 Registrar of Cooperative
Societies (RCS) forwarded a list of 35 societies to DDA i.e.
respondent no.1 for allotment of land. It was urged that most of the
societies in said list were either non existent or totally defunct or
decayed beyond retrieval. Notice of petition was issued to
respondents for 30.08.2004. In the meanwhile, operation and effect
of communication dated 25th March, 2004, whereby additional list of
35 societies had been furnished, was stayed.
2. On 31.8.2004, an application was filed by Awas Deep Society
averring that any decision taken in the writ petition would affect the
WP(C)No. 10066/2004 Page 3 of 14
right of applicant. Notice of the said application was issued and
after hearing, Awas Deep Society was made a party in the writ
petition and arrayed as respondent. It was also ordered that till the
next date no land be allotted to any society. Counter affidavit has
been filed by respondent no.2 i.e. Registrar, Cooperative Societies.
3. During the pendency of proceedings and on consideration of
the material on record, it was felt that the matter required further
probe and consideration on account of 'Builders' having taken over
Cooperative Societies. It was observed in order dated 22.11.2004,
that societies were being sold and bought by builders in Delhi. Court
expressed its deep concern over the matter and called for Vice
Chairman, DDA and Registrar of Cooperative Societies to be present
in person in court. Pursuant to said order Mr. M Gupta, Vice
Chairman, DDA and Mr. S Gopal Sharma, Registrar Cooperative
Societies, appeared in person in court and they informed that
authorities were aware that after allotment of land to Cooperative
Housing Societies in certain cases, the society as a whole is
purchased by Builders and thereafter members are changed on the
basis of en masse resignations, expulsions and new members
inducted by charging premium at market rates, taking advantage of
loopholes in the Rules and Regulations. The court observed the need
for formulation of a comprehensive policy with regard to allotment of
land to Cooperative Societies taking into account the above factors.
Union of India was also issued notice and has filed its affidavit.
Learned Additional Solicitor General pointed out that an earnest
attempt was being made to see that land allotted to societies was
WP(C)No. 10066/2004 Page 4 of 14
not hijacked by the builder mafia in Delhi and certain suggestions
were placed on record.
4. On 05.04.2005, DDA was directed to file an affidavit pertaining
to the categorization of societies i.e. list of those societies which
underwent liquidation and now were seeking revival and allotment
of land and the list of genuine societies which had approved list of
members till 31.10.2003, from the office of Registrar Cooperative
Societies, with their membership duly verified.
5. Considering that enormous amount of money that had been
pumped in and invested by the influential Builder mafia and other
vested interests, collusion and complicity of the staff and officers of
RCS and others to hijack the societies, Director CBI was directed to
constitute a special investigation team headed by an officer not
below the rank of DIG with adequate staff to investigate the whole
matter. On 31.8.2005, counsel appearing for CBI informed about
outcome of preliminary investigation. CBI was directed to file a
detailed affidavit in this regard. On 3.10.2005 CBI filed status
report wherein it pointed out that out of 135 societies, 19 societies
appeared to be genuine, the names of said societies had been given
in Annexure A to the report. On the same date the names of those
societies were ordered to be deleted from the list of 135 societies
which were directed to be scanned by the CBI. Registrar
Cooperative Societies was directed to verify the list of members in
accordance with law.
6. During the pendency of proceedings, this court further noted
that many societies had been allotted land after the year 2000. It
WP(C)No. 10066/2004 Page 5 of 14
was noted that as the price of the land started soaring in Delhi after
the year 2000, this spurt in land prices led to unholy nexus between
builders and powerful persons in various authorities. Societies which
were hitherto defunct or had lost interest in allotment for one reason
or another were sought to be revived by the office of the Registrar of
Cooperative Societies and thereafter land was demanded from DDA
on the basis of such recommendation. The court ordered DDA and
Registrar of Cooperative Societies to give details of all the societies
which were allotted land after the year 2000 and also directed them
to produce the relevant files in court along with recommendations of
allotment to DDA. CBI was directed to look into those allotments
and also with regard to the members who had been allotted land.
Mr. K C Mittal, Advocate, was appointed Amicus Curiae to assist the
Court.
7. On 08.09.2006, this court noted that in all CBI was referred
252 societies for investigation. The aforesaid 252 societies were
divided into two categories, 152 societies were those where land
was yet to be allotted by DDA and the other 100 societies where
land had already been allotted and construction was either complete
or continuing. The CBI was directed to give priority in investigation
to the societies where construction was complete or was continuing.
During the course of hearing of the matter, CBI had been submitting
its report of investigation about the societies which were involved in
the scam and in some of the cases they have already filed charge-
sheet and in some cases they are awaiting sanction from the
Competent Authority. In few cases it is reported that there is no
WP(C)No. 10066/2004 Page 6 of 14
criminal act attributed to the societies, some of the societies were
found to have committed irregularities in procedures. The report
submitted by CBI has been gone into by all concerned including the
Amicus Curiae, who had been appointed to study and report if any
Society had been wrongly given a clean chit.
In all, it has been found that there are 58 societies where
construction is complete and the flats can be allotted after following
the due procedure. The list of the Societies is as per Annexure I to
this order.
8. We are of the view that members and newly inducted
members having invested their hard earned money and have been
waiting for long for allotment, it was necessary that the current
impasse is ended at the earliest to prevent attrition of the flats by
disuse.
9. We had vide our order of 5.3.2008 with the same objective in
mind, constituted a Committee comprising Justice J.P. Singh
(retired), Chairman, Mr. A.K. Malhotra, DIG, CBI, Mr. U.K. Worah,
Registrar of Cooperative Societies, Mr. S.S. Gill, Director, Land
(residential), DDA, to scrutinize the cases of each of these Societies
to determine the members, who are eligible for allotment after
verification of the membership considering the question of forged
and forced resignations, expulsions etc. The Committee held in all
about 22 sittings and submitted two interim reports and two status
reports but the task of verification has not proceeded further.
WP(C)No. 10066/2004 Page 7 of 14
10. We have perused the first and the second interim report as
also the proceedings of the Committee that have taken place and its
deliberations. The Committee has reported that the task before it is
a gigantic one concerned with the verification and genuineness of
eligibility of nearly 10,000 fake, bogus or genuine members
comprising members of the societies under question. The
Committee has also noticed that a good number of members have
also transferred their allotments/flats. There was also difference of
opinion surfacing within members of the Committee as regards the
manner of verification to be done. Resultantly, the Chairman of the
Committee Mr. Justice J.P. Singh (retired) desired to be relieved of
the responsibility. We have also considered the comments of the
Registrar of Cooperative Societies filed along with the Committee's
report and also heard a cross section of counsel appearing before us
namely, Mr. K.C. Mittal, Amicus Curiae, Mr. K.K. Rai, Sr. Advocate
with Mr. Sanjay Pathak, Mr. R.N. Bhardwaj, Ms. Rekha Palli, Mr.
Sobhit Mahant, Mr. J.M.Sabharwal, Sr. Advocate with Ms. Sujata
Kashyap, Mr. Sanjeev Ralli, Mr. Fanish K. Jain, Mr. Harish Gulati for
CBI and Mr. V.K. Tandon for Registrar of Cooperative Societies,
Registrar Mr. U.K. Worah as also Mr. A.K. Malhotra, DIG, CBI and
Mr.Rakesh Munjal, Sr. Advocate on the most appropriate manner for
verification of the eligible members for allotment of the flats in the
societies where land has been allotted and construction is complete
or nearing completion. We have also reviewed the progress so far
made.
WP(C)No. 10066/2004 Page 8 of 14
11. Having heard learned counsel representing different view-
points and considered the matter and the progress made so far, we
are of the view that this gigantic task of verification needs to be
performed by those, who are conversant with the requirements and
Rules and can expeditiously deliver. We are conscious of the fact
that it was on account of complicity of former staff and officers of
Registrar of Cooperative Societies that the defunct and bogus
societies were revived and passed on into the hands of builder
mafia. Nevertheless, the same cannot be a ground not to utilize the
available talent and expertise with the office of Registrar of
Cooperative Societies and its staff for the verification especially
when the same is also part of their statutory responsibilities. We
are of the view that the apprehensions and misgivings, if any, on this
account, can be redressed by creation of a mechanism where the
verification carried out by the Registrar of Cooperative Societies and
the Rule Committee is reviewed and approved by an independent
Committee.
We are, therefore, of the view that rather than entrusting the
task of verification itself to the Committee constituted by us, it
would be appropriate if the task is performed by the office of the
Registrar, Cooperative Societies and the Rule 90 Committee and is
reviewed by the Committee constituted by us. However, in view of
the developments noted earlier, the Committee also requires to be
re-constituted.
12. We accordingly re-constitute the Committee as under:
1. Justice R.C. Chopra (retired) - Chairman
WP(C)No. 10066/2004 Page 9 of 14
2. Mr.A.K. Malhotra, DIG, CBI - Member
3. Mr.G.S. Meena, Addl. Secretary,
Land and Building Deptt. - Member
The Committee is hereinafter referred to as Justice Chopra's
Committee.
13. The verification of membership of the 58 Societies excluding
Ashadeep CGHS, i.e. 57 Societies, listed in Annexure I, shall be
carried out by the office of the Registrar of Cooperative Societies
and approved by the Rule 90 Committee within time frame as
agreed to during the hearing. The broad modalities and procedure
to be followed is outlined as under:
(i) All the concerned Cooperative Societies shall furnish all
the information/documents along with the lists of
members in compliance of Schedule VII under the DCS
Rules, 2007 to the office of Registrar within 15 days.
(ii) The concerned Cooperative Societies shall publish a public
notice in two leading daily newspapers of NCT of Delhi,
one each in English and Hindi inviting objections on the
proposal regarding clearance of membership for allotment
of flats/plots by draw of lots as approved by Registrar of
Cooperative Societies.
(iii) Cooperative societies thereafter shall submit the revised
proposal, if any, within 30 days of publication of public
notice along with objections received and comments
WP(C)No. 10066/2004 Page 10 of 14
thereon to the Registrar's office. The Registrar shall
dispose the objections after hearing the parties/objectors,
as necessary, within 30 days.
(iv) The scrutiny of the documents furnished shall thereafter
be done by the Office of the Registrar of Cooperative
Societies and deficiency memo, if any, will be issued to
the society for removal of deficiencies within a period of
15 days.
(v) After receipt of complete documents from the societies,
the documents will be scrutinized by the Office of the
Registrar within 15 days.
(vi) At the time of verification, a duly authorized person of the
concerned society shall be present along with requisite
documents in original as per clause 23 of Schedule VII.
(vii) After examining the office records of the proposal
submitted by the Cooperative Society and documents, the
matter shall be referred by the Office of Registrar to the
committee constituted under Rule 90 of DCS Rules along
with its recommendations also taking into account inputs
by CBI for approval.
(viii) On receipt of recommendations, the Rule 90 Committee
shall examine and review recommendations made by
Registrar of Cooperative Societies and take a decision
thereon preferably within 15 days of receipt.
WP(C)No. 10066/2004 Page 11 of 14
(ix) Report of the Registrar of Cooperative Societies together
with the Rule 90 Committee's approval, shall be placed
before the Justice Chopra's Committee constituted by the
Court comprising Justice R.C. Chopra (retired), Mr.A.K.
Malhotra, DIG, CBI and Mr.G.S. Meena, Addl. Secretary,
Land and Building Deptt. for consideration, review and
approval. Justice Chopra's Committee shall consider the
reports and recommendations made and in its discretion,
may approve, modify, reject or remit the reports or any
part thereof or any recommendation as made. It would
also be open for the Justice Chopra's Committee to hear in
its discretion any of the objectors or aggrieved persons
and seek any further information/document or clarification
that it may require and take a decision thereon with
regard to the grievance of such a person, his entitlement,
eligibility or otherwise.
14. Justice Chopra's Committee shall submit its report regarding
the approval, rejection, modification, remission, rejection of the
report of the Registrar and the Rules Committee within two months
of having received the report and recommendations from the
Registrar and Rules Committee. The Court upon receipt of the
report of the Justice Chopra's Committee together with the
recommendations from the Registrar of Cooperative Societies and
the report of Rule 90 Committee shall pass suitable orders and direct
the Registrar of Cooperative Societies to forward the list, as
approved, to DDA for draw of lots.
WP(C)No. 10066/2004 Page 12 of 14
15. We further direct that all the 57 Societies except the Naval
Tech. Officers' Cooperative Group Housing Society, shall deposit a
sum of Rs.15,000/- each with the Registrar General of this Court
within a week from today towards meeting the expenses of the
Committee and carrying out the exercise of verification including the
fee of the Chairman and honorarium for the members of the
Committee. The fee of Justice R.C. Chopra (retired) in the first
instance, is fixed at Rs.1.75 lacs and an honorarium of Rs.40,000/-
each for the other two members of the Committee.
Pursuant to the orders passed in WP(C)No 21912/2005-Naval
Technical Officer Group Housing Society Vs. Registrar of Cooperative
Societies & anr, the petitioner-Naval Technical Officer Group Housing
Society had deposited Rs.75,000/- with the Registrar General of this
Court. Out of that amount, a sum of Rs.60,000/- be returned to the
Society retaining Rs.15,000/-, which is the required deposit from
each Society for the time being. The fee of the Chairman of the
Committee and the honorarium to members be paid by the Registrar
General out of the amounts received from the Societies.
The case of Asha Deep Cooperative Group Housing Society
(registration No.1290) would not be covered as the same has been
the subject matter of a Writ and S.L.P. decided by the Supreme
Court.
16. We record our appreciation for the assistance rendered by the
counsel, Amicus Curiae and Mr.U.K.Worah, Registrar of Cooperative
Societies who adopted a constructive attitude in arriving at a
consensus in respect of the modalities and procedures to be
WP(C)No. 10066/2004 Page 13 of 14
followed in paras 13 and 14 on this complex matter with varying
interests to enable us to arrive at the appropriate procedure to be
followed. The aforesaid order shall apply to the Societies listed in
Annexure I. The Registry would list the writ petitions, if any, filed by
the Societies, covered in Annexure or by any of the Members
concerning the said Societies so that specific orders can be passed
in those writ petitions in conformity with the order passed today.
Writ petition to be listed upon receipt of the report from Justice
Chopra's Committee and earlier, if any directions or clarifications are
required.
Manmohan Sarin, J.
Veena Birbal, J. August 25, 2008 Rk/ssb WP(C)No. 10066/2004 Page 14 of 14