K-327 CHINNAVEERAMPATTI PRIMARY AGRICULTURAL CO-OPERATIVE CREDIT SOCIETY AND ORS. Vs. THE REGISTRAR OF CO-OPERATIVE SOCIETIES AND ORS.

JUDGEMENT

(1.) Heard Mr. S. Silambannan, learned senior counsel assisted by Mr. C. Prabakaran, learned counsel for the petitioners in all writ petitions and Mr. P.H. Arvind Pandian, learned Additional Advocate General, assisted by Mr. L.P. Shanmughasundaram, learned Special Government Pleader, accepting notice on behalf of respondents 1 and 2 in all writ petitions and notice to the fourth respondent society in all writ petitions having been served and the name appeared in the cause list, none appears for them.

(2.) The present proceedings has revealed a scam committed by the Co -operative societies in the manner in which jewel loans were availed. It is not very clear at this stage of the matter as regards the modus operandi adopted, but the statement of the learned Additional Advocate General is that the jewels pledged with the fourth respondent society were taken from the society without the knowledge of those persons, who have pledged the jewels, probably replaced with fake jewels and those jewels have been deposited with the seven societies who are the petitioners in these writ petitions in the names of fictitious persons or relatives or the directors of the fourth respondent society and loans were obtained. The estimated financial loss assessed as on date exceeds Rs. 24 crores. The matter is under investigation by the second respondent, who is the Deputy Registrar of Cooperative Societies, Dharapuram and the present writ petitions have been filed, impugning the order passed by the second respondent dated 08.01.2015, in and by which various amounts which are due to the petitioners societies from the Central Co -operative bank have been retained in a suspense account pending investigation into the allegations said to have been committed by the fourth respondent Co -operative society.

(3.) Learned Senior counsel for the petitioners urged only two contentions. Firstly, by referring to the counter affidavit filed by the third respondent stating that the Additional Registrar (Marketing, Planning and Development) office of the Registrar of Co -operative Societies in his proceedings dated 12.02.2015, ordered the enquiry under Sec. 81 of Tamil Nadu Co -operative Societies Act, 1983, into the alleged financial irregularities including the loan given by the petitioners society on the pledge of jewels fraudulently taken from the fourth respondent society and such enquiry having been ordered only on 12.02.2015, the impugned order could not have been passed on 08.01.2015.