Important Point—Consultation means a meaningful and effective consultation.

1. The petitioners (18) in number representing the elected Managing Committee of the District Cooperative Central Bank Ltd., Warangal, maintained the writ petition against (6) respondents viz., 1. The State of Telangana, represented by Secretary, Cooperative Department, 2. Principal Secretary to the Chief Minister, Chief Minister’s Office, 3. Commissioner for Cooperation and Registrar of Cooperative Societies, 4. Joint Registrar/District Cooperative Officer, Warangal (Urban) 5. District Collector, Warangal (Rural) and 6. The District Cooperative Central Bank Ltd., Warangal, rep. by its Chief Executive Officer and the prayer in the writ petition reads as follows:

“…to issue an order or direction more particularly one in the nature of Writ of Certiorari calling for the records relating to Rc.No.3126/2017/CR-2, dated 18-04-2017 passed by the 3rd respondent under Section 34(1)(c) of TSCS Act suspending the Managing Committee of District Cooperative Central Bank, Warangal for a period of six months and also appointing Collector and District Magistrate, Warangal (Rural) District as Official Administrator to manage the affairs of DCCB, Warangal and quash the same holding it as highly arbitrary, bad and illegal and consequently restore the Managing Committee of the DCCB, Warangal and pass such other order or orders as deem fit and proper.”

2. The affidavit filed in support of the petition running in several pages is in relation to mostly reproduction of the reply given on 17.4.2017 to the Commissioner for Cooperation and Registrar of Cooperative Societies-3rd respondent, in meeting the allegations made in the show cause notice issued by him on 15.04.2017 in Rc.No.3126/2017/CR-2. It is ultimately from those writ petition affidavit averments in referring to the show cause notice and the reply supra but for to produce to the extent necessary wherever required not of such necessity now to mention, the impugned order dated 18.04.2017 was passed by the 3rd respondent referring to the letter received from the 2nd respondent-Principal Secretary to Chief Minister dated 21.03.2017 and the proceedings of the 3rd respondent covered by references (2) and (3) and the show cause notice supra as reference (4) and the explanations submitted by the 1st petitioner and other petitioners in their capacity as the case may be as reference (5) and the order reads as follows:

“Vide reference 2nd read above, the CC and RCS, TS, Hyderabad, who on verification of the records to find out the truth or otherwise of the allegations against the mismanagement of the Managing Committee, had found prima facie material suggesting the violation of the provisions of TSCS Act. 1964, Rules, Banking Regulation Act and guidelines issued by the ANABARD and TSCAB. Vide reference 3rd read above, the CC and RCS, TS, Hyderabad ordered a statutory Inquiry U/s.51 of the Act into the constitution, working and financial condition of Warangal DCCB, while appointing Sri G.Srinivasa Rao, Additional Registrar/Chief Auditor as Inquiry Officer.

Vide reference 4th read above, notice was issued U/s.34(1)(c) of the Act calling upon the Chairman of Warangal DCCB and Managing Committee, Warangal DCCB, to explain why the Managing Committee of Warangal, DCCB, cannot be suspended U/s 34(1)(c), while appointing the Official Administrator for Managing the affairs of Warangal DCCB.

With reference 5th read above, the Chainman of Warangal DCCB and members of Managing Committee (Board) of Warangal DCCB, submitted explanations to the notice issued. The Registrar examined in detail the explanations submitted and found them to be not satisfactory.

The Registrar has come to a conclusion that the Board of Warrangal DCCB, committed acts prejudicial to the interest of the Cooperative Society and its members and the Board is also negligent in performance of its duties. The Registrar has also come to a conclusion that continuation of the Board is prejudicial for conducting a thorough and fair inquiry into the