MEKALA OBULA REDDY AND 22 OTHERS Vs. THE GOVERNMENT OF ANDHRA PRADESH, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF COOPERATION, HYDERABAD AND 24 OTHERS

JUDGEMENT

(1.) - This writ petition is filed for declaring the action of the respondents in conducting an enquiry as directed by the Minister for Cooperation, Government of Andhra Pradesh, without issuance of any notice to the society and its members and also in violation of Sec. 51 of the A.P. Cooperative Societies Act, 1964, thereby depriving the members of Nallalingayapalle PACS, Kamalapuram Mandal, Kadapa District in becoming beneficiaries of the loan waiver scheme to be unveiled shortly by the Government of Andhra Pradesh, without following due process of law and also without following the principles of natural justice as illegal and arbitrary.

(2.) The case of the petitioners is that they are all members of Primary Agricultural Cooperative Society (PACS), Nallalingayapalli and their grievance is that an enquiry under Sec. 51 of the A.P. Cooperative Societies Act, 1964 was conducted pursuant to the order of the Minister for Cooperation on the representation submitted by the Ex-MLA, contrary to the said Act. It is stated that the enquiry was conducted for certain contingencies and unless the provisions contemplated in Sec. 51 of the Act have been complied with, no enquiry can be initiated. It is also stated that this Court on 25-07-2014 granted stay of all further proceedings and the enquiry was conducted as per the endorsement made by the Minister for Cooperation dated 18-07- 2014 and no notice was issued before conducting such enquiry. The enquiry is on the allegation that the loans were taken basing on bogus passbooks and on benami names of the members of the society. Aggrieved by the same, the present writ petition is filed.

(3.) The respondents 1 to 4 filed their counter admitting that the enquiry was conducted basing on the endorsement made by the Minister for Cooperation, Government of Andhra Pradesh, on the representation of Ex-MLA dated 18-07-2014 on the allegations made by the members of the society. It is further stated that basing on the marginal orders on 18-07-2014 on the representation dated 18-07-2014, a domestic enquiry was ordered to be conducted by one B. Ramesh, the Divisional Cooperative Officer, who was appointed as Enquiry Officer and who submitted his report vide Rc.No.936/2014-C2, dated 25-07-2014 stating that he has verified the pass books of the members, who have taken the loans and found that 60% of the pass books are bogus. It is also stated that the signatures of Tahsildar and Revenue Development Officer seems to have been forged and recommended for verification of the bogus pass books by the Revenue Authorities for taking stringent action against the persons those who are responsible in preparation of bogus Government documents. It is further stated that no benami loans are brought to his notice, but a detailed inquiry may be conducted as the loans are sanctioned to the farmers on fake or duplicate pass books and also large procedural gaps are caused in sanctioning the loans. It is also stated that due to lack of time, the Divisional Cooperative Officer has not issued notice to the society before conducting such enquiry and the sum and substance of the counter is that before conducting a statutory enquiry, a reasonable opportunity will be given to the petitioners as per the provisions of A.P. Cooperative Societies Act. It is also stated that the enquiry under Sec. 51 of the Act will be ordered only whenever necessary and reasonable opportunities will be given to the members of the society by the Inquiry Officer as per the principles of natural justice.