Y. V. Manyavasi vs The State Of Telangana And 10 Others on 25 January, 2024

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Telangana High Court

Y. V. Manyavasi vs The State Of Telangana And 10 Others on 25 January, 2024

Bench: Nagesh Bheemapaka

       HON'BLE SRI JUSTICE NAGESH BHEEMAPAKA

   WRIT PETITION Nos 46502 of 2022, 7152, 8100, 8106,
   8116, 13150, 16349, 18446, 8415 AND 16274 of 2023

COMMON ORDER:

Heard Sri S. Ram Babu, learned counsel for petitioner in Writ Petitions No. 46502 of 2022, 7152, 8116, 13150, 18446 and 16349 of 2023, Sri S. A. Subba Rao, learned counsel for petitioner in Writ Petition No. 8100 of 2023, Sri Srinivas Podicheti, learned counsel for petitioner in Writ Petition No. 8106 of 2023, Sri C. Ruthwik Reddy, learned counsel for petitioner in Writ Petition No. 8415 and 16274 of 2023, learned Government Pleader of Cooperation on behalf of Respondents 1 to 3 in Writ Petition No. 46502 of 2022, 7152, 8100, 8116, 8106, 13150, 18446, 16349, 8415 of 2023, learned Government Pleader for Cooperation on behalf of Respondents 1 to 4 in Writ Petition No. 16274 of 2023, learned Government Pleader for Stamps and Registration for respondent No 6, and Sri Kadiyala Ravi Chandra Mohan, learned Counsel for the 4th respondent in Writ Petition No. 46502 of 2022, 7152, 8100, 8116, 13150, 18446 and 16349 of 2023, learned counsel for the 5th respondent in Writ Petitions No. 8415 and 16274 of 2023, Mrs. Neelam Narania, learned counsel for Respondents 5 and 10 in Writ Petition Nos. 7152, 8100 and 13150 of 2023, Mr. Rahul 2 Kandharkar, learned counsel for the 5th respondent in Writ Petition No. 16349 of 2023 .

2. In these Writ Petitions, petitioners challenge supersede / expelling management Committee and appointing an OFFICIAL ADMINISTRATOR / PERSON IN CHARGE in place of Management Committee for looking and conducting day-to- day affairs of Telugu Cine Workers' Cooperative Housing Society Limited (for short 'the Society'). The main grievance of petitioners is against the manner in which Management Committee of Society is functioning, affecting the rights of individual members, mismanagement of funds and assets of Society. On the complaint filed by some of the members of the Society, inquiry under Section 51 of the Telangana Cooperative Societies Act, 1964 (for short, 'the Act') and Surcharge Order under Section 60 has been conducted; even thereafter, the present Management Committee members are admitting members, who are non-cine workers and allotting flats duly collecting huge money from them. Petitioners paid the entire amount against the allotted flats by the five-men allotment committee, but Management Committee did not register the flats.

3. Learned counsel for petitioners also contended that the present Management Committee holding the Society for 3 ransom and are acting in a way which causes grave prejudice to members of the Society as well as in direct contravention of Bye- laws of the Society by altering / terminating the membership and handing over flats/ units to non-cine workers which is direct detriment of the intent of the Society. WRIT PETITION No. 46502 OF 2022:

4. Learned counsel for petitioner contends that the Management Committee of the Society is holding the Society for ransom and the respondents are acting in a way which causes grave prejudice to members of the Society as well as direct contravention of bye-laws of the societies. Further, the Society as well as its Management Committee members are altering / terminating the membership and handing over flats/row houses to non-members (non-cine workers) which is a direct detriment of the intent of the Society. The Management Committee conducting themselves in complete disrespect of the Society bye-laws and law of the land which fact was confirmed by the Inquiry Report dated 28.07.2021 submitted by the Special Grade Deputy Registrar/ Inquiry Officer under Section 51 of the Act. The said report was confirmed by the Deputy Registrar of Co-operative Societies exercising powers under Section 60 of the Act. As per Section 21-AA (5), the Management Committee shall place the aforementioned inquiry report dated 28.07.2021 and 4 surcharge report under Section 60, dated 24.06.2022 before the General Body Meeting and called for meeting of the General Body, but, in the subject case, the Management Committee purposely concealed the aforesaid report, thereby the Management Committee committed an offence under Section

81. Section 34 (1)(b) specifically contemplates, if the Committee defaults in placing the inquiry report before the General Body within a period of 15 days, then Management Committee shall be kept under suspension for a period of six months and the 3rd respondent shall conduct fresh elections to constitute the Management Committee within a period of six months.

Learned counsel for petitioner contends that as the Deputy Registrar was appointed as Surcharge Officer and she furnished a report under Section 60(1) of the Act observing that the unofficial respondents siphoned funds to the tune of Rs. 86.48 crores and directed them to refund the said amount to the Society. He further contends that total amount of Rs.86,48,04,924/- along with interest at 18% per annum has been directed to be recovered from the present members as well as the earlier Management Committee members under Surcharge proceedings vide Re.No.01/TCWCHS/SC-60/2021 dated 24.06.2022.

It is contended that petitioner and others filed various Writ Petitions No. 41145, 38330 and 36749 of 2022 and all those Writ Petitions were disposed of with a direction to Respondents 1 to 3 to consider the representations given by petitioner and other petitioners in four to five weeks. Despite such orders, the members of Management Committee are trying to hand over flats/row houses to other members, who are not connected to cine field.

Learned counsel for petitioner contended that Management Committee is not only creating 3rd party rights over the flats/houses of the Society but are also misusing the funds. The said fact was completely ignored by the official respondents and permitting them to continue as Management Committee and the official Respondents are acting hand-in- glove with the members of the Management Committee and causing grave prejudice to the deprived class of cine industry.

5. Learned counsel for the 4th respondent submits that inquiry was conducted by the Inquiry Officer / Special Grade Deputy Registrar under Section 51 of the Act and inquiry report was submitted on 28.07.2021. Thereafter, the Deputy Registrar of Co-Operative Societies exercised power and initiated Surcharge Proceedings under Section 60 and submitted report on 24.06.2022. The Management Committee of the 6 4threspondent Society placed inquiry report before the general body in the meeting conducted on 29.08.2021. An appeal has been filed under Section 76 of the Act against the surcharge order dated 24.06.2022 before the Co-Operative Tribunal to grant interim suspension of surcharge order and in I.A.No. 43 of 2022 in CTA No. 11 of 2022, the surcharge order has been suspended by the Cooperative Tribunal on 30.01.2023.

Learned Counsel further submits that there is no misuse / misappropriation of funds or property of the Society by the Management Committee of the Society (ex and present) for which an interim order also passed by the Cooperative Tribunal in I.A. No. 142 of 2021 in CTA No 17 of 2021 dated 18.08.2022 which clearly stated as " It is prima facie established that there is no misappropriation or misuse of funds by petitioners for their personal gain to establish a case against petitioners under Section 21AA (1) (b) of the Act. The Management Committee had not done any default as per Section 34 1(b) but it is only the advance amount released to contractors for completion of project for the benefit of all members of the society". CTA No. 17 of 2021 is pending before the Cooperative Tribunal and the advances were released to contractor M/s IVRCL which went into liquidation and the Liquidator admitted the Society claim of Rs.46.26 crores and Society had initiated arbitration 7 proceedings against rest of the advances paid to other contractors.

Learned counsel for the 4threspondent Society contends that as Writ Petitions No. 41145, 38330 and 36749 of 2022 were disposed of by this Court directing Respondents 1 to 3 to consider the representation made by petitioners in four to five weeks, DCO had initiated proceedings vide RC No. 339/2022-H dated 13.12.2022 within a period of five weeks and issued direction vide RC No. 2128/2017- H dated 15.12.2022 to the Management Committee of the Society (i.e. TCWCHSL) not to make any re-allotment and not to do any further registration of row houses and flats; based on the directions by the DCO, the Society stopped re-allotment and registration of row houses / flats. The proceedings are pending before the DCO. WRIT PETITION No. 7152 of 2023:

6. Learned counsel for petitioner submits that the inquiry report dated 28.07.2021 under Section 51 of the Act is with regard to (i) irregularities in allotment of flats and membership issues; (ii) irregular construction of row houses and duplexes; (3) misappropriation of funds by IVRCL in collusion with EC members; (4) irregularities in payment of huge advances to contractors / construction companies; (5) irregular permission to Kairos Global School Establishments; (6) irregular 8 construction of complexes and allotment of shops; (7) irregular availment of loans from banks; (8) irregular collection of registration charges; (9) allotment of flats to persons not belonging to cine field and against bye-laws and eligibility; (10) irregular payment of advance of Rs. 37,50,000/- to M/s SPG Enterprises and non-recovery of same in spite of lapse of period from the persons responsible; (11) Management Committee deliberately and intentionally did not place the said inquiry report and surcharge report before the GBM before the period contemplated under the Act despite lapse of ten months, the said action of the Management Committee members confirm their misdeeds and (12) Respondents 5 to 11 without respecting the law, continued to disobey the bye-laws of the Society and transferring the properties allotted to members and causing great loss to members of the Society.

Learned counsel for petitioner also contends that the Deputy Registrar was appointed as the Surcharge Officer and she furnished a report under section 60(1) of the Act and observed that the unofficial respondents siphoned funds to the tune of Rs. 86.48 crores and directed them to refund the said amount to the Society. He further contends that total amount of Rs. 86,48,04,924/- along with interest at 18% per annum has been directed to be recovered from Management Committee as 9 well as the earlier Management Committee members under surcharge proceedings vide Rc.No.01/TCWCHS/SC-60/2021, dated 24.06.2022. He submits that Section 34(b) of the Act stipulates the condition when arisen, the Committee shall be superseded. The said provision reads as under:

" 34(b) The Committee may be superseded or kept under suspension in case -

 (i)     Of its President default; or
 (ii)    Of negligence in the performance of its duties; or

(iii) The Board has committed any act prejudicial to the interests of the Co-

operative society or its members; or

(iv) There is stalemate in the constitution or functions of the Board;

(c) by order, supersede or suspend the Committee from a specified date and appoint the Official Administrator (The Registrar may after giving the Committee on opportunity of making its representations) to manage the affairs of the society, as per the conditions of service as may be prescribed, for a period of not exceeding six months:.."

Learned counsel for petitioner also submits that various grave and prima facie irregularities are being committed deliberately by the Management Committee members with the aid and support of the official respondents. The Management Committee members in violation of bye-laws and directions of the official respondents creating 3rd party rights. The action of the Management Committee is in complete violation of bye-laws as well as G.O.Ms. No. 658. It is submitted that Management Committee continued their misdeeds even after findings of Inquiry Report dated 28.07.2021 and Surcharge Report dated 10 24.06.2022 by creating 3rd party rights and issued new membership to non-cine workers, etcetera. The 3rd respondent, after a detailed enquiry, cancelled the illegal allotments to an extent of over 300 units made by the unofficial respondents / Management Committee vide letter dated 12.01.2023. Despite such a finding, no action has been initiated as contemplated under Section 34 of the Act.

7. Learned counsel for Respondents 5 and 10 contends that inquiry was conducted under Section 51 of the Act and surcharge order has also been passed and the said order was stayed in Cooperative Tribunal. Learned counsel for the 4th respondent Society and learned Government Pleader also contended the same as the surcharge order was suspended in I.A No 43 of 2022 in CTA 11 of 2022 dated 30.01.2023.

According to learned counsel, as per Section 34 (1)

(b) under proviso iii 'The Board has committed any act prejudicial to the interest of the co-operative society or its members' has not been established that the Management Committee committed any misappropriation or violation and Section 34 (1) (c) clearly stated under exceptions as "Provided that the committee of any Co-Operative society shall not be superseded or kept under suspension where there is no Govt. Shareholding or Loan or financial Assistance/ subsidy of any 11 form or any Guarantee by the Government. The 4th respondent Society is purely a private body and no shareholding or loan or financial assistance from the Government to supersede the Management Committee. Learned counsel also contends the same as the Society is a private body and there is no subsidy or financial assistance from the government to supersede the Management Committee, exceptions under Section 34 (1) (C) will be attracted as per the Act.

It is further submitted that admission of 20 new members is as per the Management Committee's meeting dated 19.07.2022 and same has been kept for approval before the General Body conducted on 25.09.2022; Agenda point No. 19 was mentioned in notice of minutes of the meeting, dated 07.09.2022 and decision taken by the Management Committee has been approved through the General Body meeting, and there is no violation in relation to admission of new members and also there is no tempering of membership, as alleged by petitioner. Petitioner also levelled allegations against voters' list for 2005. In fact, the Election Officer released voter's list for 2020 after proper verification only and Management Committee was elected as per elections conducted on 10.12.2020 for a tenure of five years.

8. Learned counsel for the 4th respondent-Society argued that proceedings initiated by the 3rd respondent for cancellation of 336 registrations of flats/units has been suspended by the Cooperative Tribunal in I.A No 26 of 2023 in CTA No. 6 of 2023 dated 28.08.2023 and in I.A No 33 of 2023 in CTA. No. 7 of 2023 dated 17.03.2023. The list for cancellation of 336 registration in which 151 units were allotted by the five- men committee only and the 3rd respondent issued the proceedings without proper verification in which it has been suspended by the Cooperative Tribunal.

WRIT PETITION No. 8100 of 2023:

9. Learned counsel for petitioner questions the action of the unofficial respondents in conducting general body meeting on 26.03.2023. The unofficial respondents, who are found guilty in surcharge report furnished under Section 60 of the Act are liable to pay Rs. 86 crores. Further the said Management Committee was disqualified by the 3rd respondent and the matter is pending before the Co-operative Tribunal in CTA No. 17 of 2021. Without finalization of the said CTA, on mere obtaining interim stay, the Management Committee is committing grave irregularities, tampering membership, allotting units to non-cine workers and the same was confirmed 13 and found correct by the 3rd respondent. Until and unless the order of disqualification of the present Management Committee in CTA No. 17 of 2021 is pronounced, the Management Committee has no power to take any policy decision, conduct General Body meeting, amend bye-laws, remove Society members at their whims and fancies.

It is contended that there are more than 800 tampered memberships / discrepancies in the Society members. When fake members are introduced in the Society who are henchmen of the unofficial respondents, it would be obvious that the General Body meeting is unilateral and all such non- cine and fake members will support the present General Body, which itself found guilty of various irregularities and liable to pay Rs. 86 crores, hence, prayed to stay conduct of General Body meeting on 26.03.2023 by Management Committee and not to take any major decisions which affect the rights and interests of the Society members. Learned counsel also contends that Management Committee members from time-to- time invited tenders without prior approval of the General Body, which establishes that they are acting arbitrarily and without following due process for which stay is required.

Learned counsel contends that petitioner being an active and senior citizen member of the Society, actively 14 participated in upliftment of society; petitioner was allotted HIG Duplex 4-103, which was subsequently allotted to a 3rd party, contrary to the five-men committee allotment.

10. Learned counsel for Respondents 5 and 10 argues that as per Bye-laws and Section 32 of the Act, it is the duty of the Management Committee to conduct General Body Meeting every year to reveal all the internal affairs and financial transactions before the members of the Society and very same petitioners are objecting to conduct general body meeting only with a mala fide intention to disturb the operations of Society.

11. Learned counsel for the 4th respondent submits that there is no tempering of membership or allotment of flats to its members. The procedure adopted in the Society for membership is as per verification of voters' list prepared by the election officer after removal of non-cine workers and in relation to allotment of flats or units is done by the five-men allotment committee only. The Society is only facilitating to register allotted flats once the member pays consideration amount for the flat or unit. It is also argued that respondent Society facilitates for changes or modifications as per the directions of allotment committee and statutory authorities. If any flat allotted member wants to sell the flat or unit due to financial problems, respondent Society is issuing NOC and this has been 15 wrongly portrayed by petitioners before various authorities as Society is doing 3rd party registrations.

Learned counsel contends that petitioner is the member of the Society vide membership No. 3079 and the Society allotted a flat - HIG Duplex 4-103 as per Five-Men Allotment Committee List and in the 6th allotment made by the Five-Men Allotment Committee dated 21.11.2015, the allotment was proposed to Mr. GVS Madan Mohan, S/o. GD Raju and got registered in his name. Allotment of flat is purely as per the Five-Men Allotment Committee and neither the Society nor the Management Committee has any role in change / allotment of HIG Duplex 4-103.

WRIT PETITION No. 8106 of 2023:

12. Learned counsel for petitioner submits that petitioner was allotted a flat M-1-309 by the Five-Men committee in pursuance of G.O.Ms. No 658 and the Management Committee has not registered the flat in the name of petitioner. It is submitted that there are more than around 900 fake members in the Society, who are not connected with cinema industry. All such members are inducted into the Society for getting votes and to cover the misdeeds and ratify the same. Unless the voters' list and members' list is finalized, General Body should not be conducted.

13. Learned counsel for the 4th respondent Society contends that petitioner is a member of the Society and he was allotted flat No. M-1-309 as per the Five-Men Allotment Committee but the said petitioner paid an advance amount of Rs. 4,00,000/- after allotment he defaulted to pay remaining balance amount / consideration even after reminders by the Society. Due to default by petitioner, subsequently, the flat was allotted to another cine worker and also contended that all the members in Society are cine workers only. After Section 51 Inquiry report, Society found 412 member as fake and non-cine worker and same was communicated to District Co-operative Officer through corresponding letter dated 02.01.2023 and some of the members submitted their concerned craft union letters. WRIT PETITION No. 8116 of 2023:

14. Learned counsel for petitioner contends that the present Management Committee members of the Society are holding the subject Society for a ransom and the said respondents are acting in violation of bye-laws of the Society. The Management Committee in connivance with few members who acted as members previously trying to amend the bye-laws and to ensure that they alone will become members of the Management Committee forever. With that mala fide intention, Management Committee attempted to conduct a General Body 17 meeting of the Society on 26.03.2023. The Management Committee violated bye-laws 36(d). As per the said bye-law, the Management Committee shall issue notice at least 15 calendar days in advance to the members. In the subject case, Management Committee failed to issue notice to all the members including petitioner. Bye-law No. 39 mandated that Management Committee shall maintain a list of members on the rules of the Society qualified to vote at General Body meeting and shall bring such list up to date 30 days prior to the date fixed for each meeting of General Body. It is pertinent to mention that total number of members at the inception is 4800 and Society needs to construct 4213 units. Whereas present Management Committee in connivance with previous Committee manipulated the members record and now they are trying to project approximately 9000 members. Thereby, it is clear, the present Management Committee manipulated the Society record with a mala fide motive to remove the original members who paid cost of construction of units (flats/row houses) as demanded by the Management Committee(s) from time to time. It is found by the 3rd respondent that the 4th respondent Society and Management Committee is acting completely in violation of bye-laws and G.O.Ms. No. 658 and allotting flats to persons, who are not members of the Society and/ or who are brought 18 into Society through back door who have no connection with the cinema industry.

Learned counsel also contends that the Management Committee is acting in tandem and manipulating the records and removing the persons who paid cost of construction as demanded by the Management Committee from time to time and majority of members are weaker sections of cine field and their livelihood is mainly dependent upon the work and the persons referred to above are influential and they are causing inconvenience to members, who are opposing their actions / inactions and mala fide action of members of Management Committee was brought to the notice of the authorities and an inquiry was conducted by the Special Grade Deputy Registrar and a report was submitted under Section 51 of the Act.

Learned counsel prayed to appoint a PERSON-IN- CHARGE in place of Management Committee for looking and conducting day-to-day affairs of Society to protect the interests of Society members and also to stay the General Body meeting which was proposed to be conducted on 26.03.2023.

15. Learned counsel for the 4th respondent Society contended that on the date of conducting elections in 2020, total number of members of Society is 4810 only. The Society or 19 its Management Committee has no role in manipulating list of members of Society and all the members admitted into the Society are purely cine workers and no outsider was admitted as a member of the Society and total number of constructed flats @ 4213 are allotted to its members by the Five-Men Allotment Committee only (Five Men Committee Consisting 2 members from Film Industry, 3 members from Government i.e.,1. Commissioner I & PR, 2. Registrar of Co-operative Society, 3. District Collector, Ranga Reddy). Conducting General Body meeting is a mandatory rule under Section 32 of the Act and bye-laws of Society to reveal the internal affairs and financial position, future planning of the Society before all the members only. The Society issued notices to all the members for conducting AGM which was conducted on 26.03.2023 and notice for General Body meeting and its agenda was posted on 06.03.2023 (by providing 20 clean days). Petitioner already filed so many Writ Petitions with same prayer and continuously, disturbing the day-to-day operations of the Society and trying to stay the General Body Meeting and misguide the Court with false allegations and prays in all the Writ Petitions to supersede the Management Committee and appoint the PERSON -IN - CHARGE OR OFFICIAL ADMINISTRATOR, even though the Society is a private body and supreme power is vest in the 20 General Body, instead of the procedure adopted in the Act, petitioner is directly approaching the High Court and damaging the reputation and financial status of Society. WRIT PETITION No. 13150 of 2023:

16. Learned counsel for petitioner seeks to stay tender notification dated 13.04.2023 and all other action taken in General Body meeting dated 26.03.2023 which is contrary to the order in Writ Petition No. 8100 of 2023. It is contended that Management Committee deliberately and intentionally, violated the interim order in Writ Petition No. 8100 of 2023 and finalized increase in rates of row houses and circulated notices to members and demanding an additional amount to be paid before 15.04.2023.

It is further contended that tender notification was issued on 13.04.2023 in Hans India and Surya Newspapers inviting "Expression of Interest" for Twin Towers, which is point No. 10 in the Agenda. Further, the respondents intended to finalize bids on 09.05.2023 which may cause damage to Society.

17. Learned counsel for Respondents 5 and 10 contends that with regard to Twin Towers' tenders in General Body meeting held on 26.03.2023 under agenda point No.10, it was mentioned as "Explanation of Twin Towers" only. A decision for construction of Twin Towers was taken in the General Body 21 meeting held on 25.09.2022 stating that permission from HMDA for new construction was to be given for 120 feet road instead of 100 feet. The Society stated as getting 388 flats and it is also explained to the members in General Body meeting dated 26.03.2023 that previous tenders called for construction of Twin Towers with 100 feet road were cancelled and fresh tenders will be called with 120 feet road. In this regard, calling of tenders' decision was not taken in this General Body meeting and it is only information to members for twin towers progress. In continuation of this process, the Management Committee of the Society called for tenders for twin towers on 13.04.2023. However, process has been stalled as per the directions of the Court vide order dated 04.05.2023. It is further informed that Management Committee of the 4th respondent Society has not violated Court directions issued on 24.03.2023 in Writ Petition No. 8100 of 2023. It is submitted that Agenda of General Body meeting comprises 11 points. Point No. 7 deals with validation of row houses, subject to increased rates. Petitioner is trying to represent the meaning wrongly before the Court regarding the contents mentioned in the Agenda. It is very clearly stated in Agenda point No.7 as validation of row house as subject to increased rates. Management Committee already conducted a meeting with all the row house members regarding the present 22 increased price of construction value (as per market survey and raw material rates). After decision of all the row house members only, this was discussed before the earlier General Body meeting and all row house members also agreed by giving their signature in the row house minutes of meeting dated 30.01.2023. Petitioner wrongly stated as a row house member. As per the Society records, petitioner is a member of EWS flats. Due to default in payment of amount for row house - 57, Five- Men Committee in its 6th minutes of meeting dated 21.11.2015 allotted a flat in EWS No. E-5-104 (EWS-Economically Weaker Section) and subsequently, row house was allotted to other member of Society. In the row house members' meeting and working of Management Committee, petitioner wrongly represented before the Court in agenda discussed points and stated wrongly that Management Committee of the 4th respondent Society violated the order passed by this court.

18. Learned counsel for the 4th respondent - Society contends that petitioner filed various petitions on the same grounds and misrepresented the Court though he is not a row house member and is the beneficiary member in allotted flat in EWS No E-5-104 and paid only Rs. 8,12,500/- and till date, not registered the allotted EWS flat and wrongly contesting for Row 23 House No -57 which was already registered to other cine worker allotted by the 5 men allotment committee only. WRIT PETITION No. 16349 of 2023:

19. Learned counsel for petitioner contends that official Five-Men Committee in its second meeting held on 13.06.2010 allotted row house No. 57 to petitioner, who paid membership fees as well as consideration amount, however, the Management Committee illegally registered row house to other member in violation of bye-laws and deviating G.O. Ms No 658. It is argued that the District Cooperative Officer issued impugned letter dated 19.06.2023 and permitted registration of row house No. 57 to a member, who is not the official Five-Men Committee allotted person. It is argued that contempt case has been filed against the Management Committee members for violating the order passed by this Court in Writ Petition No. 16349 of 2023.

20. Learned counsel for the 4th respondent Society contends that petitioner is misrepresenting the Court though he is not a row house member and petitioner is beneficiary of flat in EWS No E-5-104 and paid only Rs. 8,12,500/- and till date not registered the allotted flat and wrongly contesting for row house No-57 which was already registered to other cine worker allotted by the Five-Men Allotment Committee in its 6th meeting 24 dated 21.11.2015. He also contends that there is no violation of order in Writ Petition No. 16349 of 2023 and petitioner misguided the Court with false information.

21. Learned Government Pleader submits that the District Cooperative Officer issued a letter to the Society for cancellation of registration as the Management Committee is competent and also trying to lock row house No. 57 and there is no wilful violation / disobedience of the order dated 26.06.2023 in I.A.No. 1 of 2023 in Writ Petition No. 16349 of 2023.

22. Learned counsel for Respondents 4 and 5 contends that respondents have no information of the order dated 26.06.2023 and they received petitioner's letter only on 30.06.2023 after registration of row house No. 57 to other member.

WRIT PETITION No. 18446 OF 2023:

23. Learned counsel for petitioner contends that Five-

Men Committee allotted row house No. 177 to petitioner, who paid Rs.37,61,000/- but the same was not registered in his favour by the Management Committee. The Management Committee registered the said row house to another member which is in total violation of G.O. Ms No 658. The Management Committee is cancelling the allotments of several original 25 allottees and allotting to their relatives and friends for their personal benefits.

24. Learned counsel for the 4th respondent Society submits that the Society found petitioner as fake member and identity card was found to be fabricated and created which fact was confirmed by the Telugu Film Director's Association (Directors Union) Letter dated 30.12.2022. As per the said letter, it was clearly mentioned that Smt. Gayathri did not apply for any membership with their Association. It is submitted that petitioner filed Writ Petition No. 46326 of 2022 and withdrew the same with liberty to avail the remedies available under Law. It is further submitted that GPA holder document is fabricated with a reason that petitioner is staying outside the country from long time.

WRIT PETITIONS No. 8415 AND 16274 of 2023 :

25. Learned counsel for petitioners contends that Five- Men Allotment Committee constituted under G.O.Ms. No. 658, dated 04.07.1994 had conducted a draw on 21.11.2015 for allotment of row houses / flats in the said layout to its members and as per the Committee recommendations, Society received total estimated amount of Rs. 16,75,000/- from petitioner No.1 and on receipt of said amount, Society had issued letter dated 26 20.10.2017 allotting MIG Flat No. M-7-803 with built-up area of 1000 sft. and in similar way, after receiving most of the estimated amounts, Society had issued a letter of allotment of flat dated 08.07.2017 to Petitioner No. 2 allotting MIG Flat No. M-6-310 with built-up area of 1000 Sft. Petitioners have paid total amounts as demanded by the Society including escalation charges, car parking, etcetera, and all the payments were made through Bank DD's and RTGS and respondent Society had issued receipts acknowledging receipt of amounts on various dates. The respondent Society has also collected amounts from petitioners towards registration of conveyance deeds in respect of the said flats in their favour.

26. Learned counsel for Society contends that petitioners are found as fake members in verification. Management Committee also submitted list of fake members (non-cine workers) to the District Cooperative Officer vide letter dated 02.01.2023. In case petitioners submit their union letter to prove themselves as cine workers, Society has no objection to register flats in their names. It is further contended that in Writ Petition No. 16274 of 2023, petitioner was found with fake I.D card as a member. In case petitioner submits the union letter to the Society, Society has no objection to register a flat in petitioner's name.

27. Learned Government Pleader filed a detailed reply on behalf of the 2nd respondent District Cooperative Officer:

"The Telugu Cine Workers Cooperative Housing Society Ltd., was initially registered as "A.P. Cine Workers Cooperative Housing Society Ltd.," under A.P. Cooperative Societies Act 1964 with registration number TBC-608 on 08-09-1994. The name of the Society was changed to Telugu Cine Workers Cooperative Housing Society on 30-05-2015 through amendment of bye-laws with an area of operation confined to the limits of Manikonda Jagir, Rajendranagar Mandal. The Objective of the Society is providing 'Housing' facilities to the cine workers/members of the subject Housing Society. The Government of erstwhile A.P. allotted land containing Hillocks admeasuring Ac.67.16 guntas in Sy. No.246/1 of Manikonda Village, Rajendranagar Mandal, Ranga Reddy District vide G.O.Ms.No.658, Revenue (Assignment) Dept., dt04- 07-1994, for construction of 'Flats to the Cine Workers on cost- to-cost basis and also constituted a five members allotment committee consisting of (i) Commissioner, Information & Public Relations (ii) Registrar of Cooperative Societies (iii) District Collector, Ranga Reddy District and two members from the Film Industry.

The membership eligibility is 'any individual Cine Worker who has attained majority and who is competent of sound mind and who does not have any house/flat/apartment/duplex/row house/pent house in the area of operation of the Society in his name or in the name of his wife or minor children and who is not a member in any other House Building Society in the same area shall be eligible for admission as member'. The said 5 men Committee did six allotments and completed allotment of all the units and observed that, any changes or withdrawal in future shall be approved by the elected Managing Committee of the Society from time to time in accordance with the registered bye-laws and provisions of the Cooperative Societies Act, 1964 and to propose to the ensuing General body meeting for rectification In view of number of complaints submitted by the Members and Associations of Telugu Cine Workers alleging the irregularities in allotment of flats and membership issues, construction of row houses and duplexes, misappropriation of funds, payment of huge advances to builders, construction of complexes and shops, availment of loans from banks, allotment of flats to non- cine field workers etc., the Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, has ordered a statutory inquiry u/s 51 of the TCS Act 1964 and appointed the Inquiry Officer vide proceedings dt: 07-10-2020. Accordingly, the Inquiry Officer has conducted the inquiry and submitted the Inquiry Report along with the findings of the inquiry, recommending for appropriate action against the Ex- Managing Committee Members of the Society under Telangana Cooperative Societies Act, 1964.

On receipt of the statutory inquiry report, in order to protect the interest of members of the society, issued Show Cause Notice Rc.No.2128/2017-H dated: 19-08-2021, to the (5) Managing Committee Members of the present elected Committee of the Society, who were also the Members of the Managing Committee of the Society for the previous term of the Society I.e., from 2015 to 2020, and found to be responsible for the grave financial irregularities, guilty of misuse of property of the Society leading to huge financial loss to submit their explanation within (15) days on proposed action U/s 21 AA (1)(b) of Telangana Cooperative Societies Act, 1964.

Since the explanation submitted by the (5) Managing Committee members was found to be not satisfactory, vide proceedings Rc. No.2128/2017-H dated: 14-09-2021, the District Cooperative Officer, Ranga Reddy District, issued an order for cessation of Membership of (5) Managing Committee Members i.e., Sri.Anil Kumar Vallabhaneni President, Sri.V.Praveen Kumar Yadav Vice President, Sri. Kadambari Kiran Secretary, Sri.A.Mahananda Reddy - Treasurer and Sri.Raghu Bathula MC Member from the Committee of the Society U/s 21 AA (1)(b) of Telangana Cooperative Societies Act, 1964.

It is submitted that, aggrieved by the Cooperative Officer, Ranga Reddy District, Committee Members have filed an appeal order of the district the said (5) Managing U/s 76 of Telangana Cooperative Societies Act, 1964 before the Hon'ble Cooperative Tribunal, Telangana, in CTA No. 17 of 2021 and the Hon'ble Cooperative Tribunal vide order's dated: 20-09-2021 in IA No.142 of 2021 in CTA No.17 of 2021, suspended the proceedings, Rc. No.2128/2017 dated: 14-09-2021 of the District Cooperative Officer, Ranga Reddy District. It is submitted that, the District Cooperative Officer, Ranga Reddy District, filed counter for vacation of orders of suspension issued by the Hon'ble Cooperative Tribunal, Telangana, Hyderabad in IA No.142 of 2021 in CTA No.17 of 2021 on 29- 11-2021.

Based on the contents/ findings of the statutory Inquiry Report, a Surcharge Officer was also appointed by the Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, to conduct an independent inquiry U/s 60(1) of Telangana Cooperative Societies Act, 1964 and to pass surcharge orders for recovery of misappropriated amounts from the concerned delinquents.

The Surcharge Officer, issued Surcharge orders for recovery of an amount of Rs. 86,48,04,924/- along with interest @ 18% from the (5) Managing Committee Members of the Society jointly and severally including five members who are in the present committee.

The follow up action in respect of surcharge orders has been suspended, due to the stay granted by the Hon'ble High Court in W.P.No. 28319 of 2022 dated: 06-07-2022, W.P.No.30413 dated: 16-11-2022 and also orders of the Cooperative Tribunal in CTA No.11 of 2022, dt: 27-06-2022.

The Allotment Committee made as against the total 4213 available houses including cancellation and withdrawn units. 29 Thus, as on date, no vacant flats are available to be allotted to a new member, the Allotment Committee has exhausted allotting all the Units, to its members as per the eligibility criteria.

However, in cases where the members withdrew their membership or claim over the allotted flats, and in cases where the members want to change their allotted units to some other type of units; are to be re-allotted to other senior members who are in waiting list as per the eligibility criteria. The Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, Hyderabad vide Letter Rc.No.4203/2016- HR-2 dated: 17-10-2022 enclosed to the Government Memo requested the Government to rescind the G.O.Ms.No.658, dt: 4- 7-1994 of Revenue (ASN-III) Dept., and permit the elected Managing Committee to make further allotments of units and modification of units as per bye-laws of the Society and provisions of the Act, 1964.

During the last few months, the Office of DCO, RR Dist., has received number of complaints from the Members alleging that the Managing Committee of the Society has irregularly removed their membership, cancelled their allotted units and such cancelled units were re-allotted to other members / non- members without observing the eligibility criteria and also made registrations of such illegal allotted units. Therefore, directions to the Managing Committee of the Society were issued vide Circular Directions Rc.No.2128/2017-H dated:

15- 12-2022, directing them to not to deviate from the original allotments made by the 5 men allotment committee and to cancel all such irregular allotments and also directed not to register any housing units without getting clearance from the DCO.

The Sub-Registrar of Registrations Department, Vattinagulapally has also been requested to not to register the Units, until the clearance from the District Cooperative Officer, Ranga Reddy District was issued, vide Letter Rc.No.2128/2017-H, dated: 15-12- 2022.

The Hon'ble High Court, in order dated: 29-12-2022 in IA No.1 of 2022 in W.P.No.46502 of 2022, has directed the Managing Committee of the Society, restraining it from alienating and creating third party rights. It further ordered that; no documents shall be executed without prior permission of the DCO. Meanwhile, the Office of the DCO, RR Dist., has obtained registrations data from the concerned Registrations Department, I.e., SRO Vattinagulapally, Ranga Reddy District, analysed the same and confirmed that the Society has in fact made number of irregular registrations during the last one year. Such list of deviations containing (336) irregular registrations were communicated to the Society with directions to strictly confine to the allotments made by the Five Men Committee by cancelling the irregular registrations made earlier. The SRO Vattinagulapally, was also requested to stop further registrations in respect of (336) irregular registrations until the matter is examined.

The Cooperative Tribunal, Hyderabad, vide orders dated: 17- 03- 2023 in I. A.No.33 of 2023 in CTA No.7 of 2023, filed by Sri.Panchadaria Appal Raju, a member /Petitioner and (7) other against the DCO, RR Dist., issued interim suspension of DCO, RR Dist. Progs. No.2128/2017-H dated: 12-01-2023 till 27-03- 2023 and extending the same from time to time.

In order to facilitate the DCO, RR Dist., to issue clearance letter to the Society/Sub-Registrar concerned, a three men committee consisting the staff of the Office has been appointed to look into the proposals received from the Society for registration purpose and its recommendations, subject to eligibility, vide Office Order No.2128/2017-H dated: 10-03-2023.

Thereafter, the Society, in five spells, has submitted proposals to the DCO, RR Dist., for registration of about 231 units from January to July 2023. Out of which, the DCO has given permission for registration of 150 units by keeping in abeyance (81) units due to various reasons like, (i) allottee nomination details not furnished, (ii) Due to reasons as pointed in the Section 51 Inquiry Report (iii) Irregular allotments in 7th and 8th phases (iv) names found in the surcharge proceedings (v) Arbitration cases etc. Vide DCO RR Dist., letter dated: 08-06-2023, the CC&RCS has been appraised about the permission given by the DCO so far and sought clarification in respect of kept in abeyance cases.

The necessary orders in this regard are awaited from the Office of the CC&RCS".

28. There is a controversy between the parties as regards facts and issues, hence, the Court concluded to appoint Advocate Commissioners to verify the records in the Society as regards allotment / membership and all the counsel agreed with the decision of this Court for appointing Advocate- Commissioners. This Court appointed Mr. Swaroop Oorilla and Mrs. Y. Jhansi, through order dated 18.12.2023 and directed the parties to pay Rs.1,00,000/- each apart from the fees and other expenses at Rs.25,000/-.The Advocate-Commissioners visited the premises of the Society on 27.12.2023 and verified the records in the presence of petitioners and respondents along 31 with respective counsel and submitted the report in a sealed cover to this Court on 29.12.2023.

29. The findings in the report submitted by the Advocate Commissioners are as under:

" On an analysis of the entire records pertaining to the society and the orders passed in various forums i.e. S51 Inquiry Report dated 28.07.2021, Surcharge Order dated 24.06.2022 U/s 60, CTA No 11 of 2022, CTA No 17 of 2022, CTA No 6 of 2023, CTA No 7 of 2023 and above said batch of writ petitions, it is clear that the society has come to standstill and is striving to run the day to day affairs in a smooth manner because of impediments created by only a group of persons out of 4810 members.

Further the irregularities pointed out by the petitioners were answered by the society in front of the Advocate commissioner by confronting the records. Further, we the Advocate Commissioners also found that out of 4810 members only 10 to 15 members are against the society and only those members are present during the verification of the records although, we the Advocate commissioner gave opportunity to other members also to raise an issue with the respect to irregularities. However, we the Advocate Commissioner has not received any representation other than the small group of persons out of 4810 members of the society".

30. On the one hand, petitioners complain that the present Management Committee members of the Society are holding the ransom and the official respondents are acting in 32 violation of the bye-laws of the Society and allotting flats /row houses to the non-cine works and several other irregularities. On the other, the Society feigned ignorance stating that they have no role in manipulating the things and they allotted the flats in accordance with the decision of the Five-Men Allotment Committee which comprises two members from film industry and three from government. Since the interests of large number of members are involved, this Court thought it appropriate to appoint Advocate-Commissioners to know what is actually going on in the affairs of the Society. The Advocate-Commissioners accordingly, visited the Society and verified the records and submitted their report observing that out of 4810 members, only 10 to 15 are aggrieved by the action of the Society and though they provided opportunity to all the members to submit their grievances, if any, they did not appear before them.

31. In view of the rival averments, as detailed supra and in view of the pendency of proceedings before the Cooperative Tribunal as well this Court for a long, and also in the light of the observations of the Advocate-Commissioners, this Court suggested all the parties to consider the feasibility of deciding the issue amicably, for which renowned Senior Counsel Sri Jalli Kanakaiah, Sri C. Damodar Reddy and all other learned counsel conceded positively. Since the affairs of the Society, in which the 33 interests of members, 4810 in number, are involved, and the developmental activities being undertaken by them have come to a stand-still in view of the subject litigation, to give a quietus, learned counsel for the Society fairly submitted that they will register the flats allocated in the name of petitioners in Writ Petitions No. 18446, 16349, 16274 and 8415 of 2023. Hence, this Court is not inclined to go into merits of the matter.

32. The Writ Petitions are therefore, disposed of directing Respondents 2 and 3 to verify flats / units allotted to petitioners in Writ Petitions No. 18446, 16349, 16274 and 8415 of 2023 by the Five-Men Allotment committee / Managing Committee and allow Management Committee of the Society to register 11 flats / units demanded by them in their names within a period of four months from the date of this order. Respondents 2 and 3 shall verify the pending 160 flats / units and grant permission to Management Committee of the Society to complete registration to cine workers. If Respondents 2 and 3 fail to comply with the above-said direction, petitioners are at liberty to approach this Court and make a mention of non- compliance. In view of the above direction and in view of the fair consensus arrived at between the parties, no orders need be passed in Writ Petitions No. 46502 of 2022, 7152, 8100, 8106, 34 8116, 13150 of 2023, accordingly, they are closed. No order as to Costs.

33. Miscellaneous Applications, if any shall stand closed.

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NAGESH BHEEMAPAKA, J 25th January 2024 ksld 35

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