C.K.BIJU Vs. STATE OF KERALA

JUDGEMENT

(1.) Enquiry and investigation by the Vigilance Officer under Section 68A of the Co-operative Societies Act is challenged on the ground that the same was initiated on dictation and not on a reference by the Registrar on his satisfaction.

(2.) Heard Sri.N.Reghuraj, learned counsel for the petitioner and Sri.K.S.Mohamad Hashim, the learned Special Government Pleader (Co-operation).

(3.) The facts involved pertains to the period 2004-05 and relate to the procurement and disposal of paddy by the Oorukkary Service Co-operative Bank of which the petitioner was the president. The allegation is that, approximately 9083 quintals of paddy procured by the Society at the rate of Rs.750/- per quintal, which was the support price for paddy fixed by the Government, was disposed of by the Society at a much lower price on a decision by the Managing Committee. Excessive quantity of rice was procured without proper godown. The paddy was permitted to be lifted even before payment of the entire purchase price. Only a part of the agreed purchase price was paid to the Society and the balance remain unpaid. The cheques issued towards the balance purchase price were dishonoured. These are in essence the allegations leading to Section 68A investigation.