The impugned notification/order dated 17.10.2011 was applicable only in cases of self draw where the issue of regularisation arises and not per se applicable to all situations. A member who is otherwise qualified and not subjected to any disqualification set out in Section 22 or Rule 20 cannot be precluded from participation in the draw of lots.

S. RAVINDRA BHAT, J.

1. These two writ petitions urged common grievances. The petitioner in W.P.(C) 3641/2014 is a member of the Belur Cooperative Group Housing Society Ltd. (respondent in the proceedings). The petitioner in W.P.(C) 2908/2014 is a member of the Chinar Cooperative Group Housing Society Ltd.

2. The facts in both cases are brief; criminal proceedings were initiated against both petitioners - who are members of the respective Cooperative Group Housing Societies. Consequent upon investigation, in the case of Sanjay Bajaj, member of Chinar Cooperative Group Housing Society, charges were framed; however, the criminal proceedings were stayed by the Supreme Court. In the case of Gopal Bansal, the petitioner, a member of the Belur Cooperative Group Housing Society, charges have not yet been made. Their grievance is that the Registrar of Cooperative Society (“RCS”) has refused to process and forward their names for consideration and eventually allotment of a flat constructed by it, to the DDA. The RCS relies upon the policy/decision of the Lieutenant Governor (“LG”) in respect of 26 Societies dated 17.10.2011. The same is extracted below: -

"However the member and other office bearers of CBI investigated societies who have been charge-sheeted by CBI shall not get the benefit of such regularization and their names shall not be sent to DDA till the criminal cases pending against them are finally decided as in the case of other CBI investigated CBI Societies."

3. It is argued by the writ petitioners that the directions sought to be relied upon by the Registrar cannot be applied blindly and that it is applicable only in the cases of members of Societies who were given the benefit of draw of lots wherever there was a self draw. In the present case, however, no “self draw” was conducted and the petitioners claim to be entitled to allotment of a flat on the strength of their memberships. Learned counsel also relies upon the Delhi Cooperative Societies Act and the Rules framed thereunder to submit that barring Rule-90, which expressly stipulates that such members who indulge in any irregularity in respect of draw of lots are not permitted to contest election in any office in the Society, and there is no disqualification. Counsel relies upon Section 22 and Rule 20.

4. Counsel for the respondents, on the other hand, submits that having regard to the large scale irregularity - in some cases even suggestive of criminality - a conscious approach has been adopted. Consequently, the impugned Circular was issued in public interest. Section 22 and Rule 20 which are relevant for the purposes of these proceedings read as follows: -

Rule-20 OF THE DELHI CO-OPERATIVE SOCIETIES RULES, 2007

20. Disqualification of membership

(1). No person shall be eligible for admission as a member of a co-operative society if he:-

(a) has applied to be adjudicated an insolvent or is an un-discharged insolvent; or

(b) has been sentenced for any offence other than an offence of a political character or an offence not involving moral turpitude and dishonesty and a period of five years has not elapsed from the date of expiry of the sentence, or 16

(c) In the case of membership of a co-operative housing society,

(i) owns a residential house or a plot of land for construction of residential house in any of the approved or un-approved colonies or other localities in the National Capital Territory of Delhi, in his own name or in the name of his spouse or any of dependent children, on lease hold or free-hold basis or on power of attorney or on agreement for sale: Provided that above clause shall not be applicable,

(a) in case of co-sharers of property whose share is less than 66.72 sq. metres of land; or if the residential property devolves on him by way of inheritance;

(b) in case of a person who has acquired property on power of attorney or through agreement for sale and on conversion of the property from leasehold to freehold on execution of conveyance