ORDER :

The petitioners are the President and the Vice-President of the Perambur Cooperative Building Society Ltd. These writ petitions assail the proceedings of the 1st Respondent dated 01.06.2021 suspending the petitioners, in exercise of powers under Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983 (hereinafter referred to as “the Act”), for a period of 6 months pending an inquiry under Section 81 of the said Act.

2. The petitioners were elected as the President and Vice President, respectively, during the elections conducted in 2018 for a period of 5 years. The Joint Registrar (Inspection Cell) gave a report dated 20.05.2021to the Deputy Registrar of Cooperative Societies (Housing), the 2nd Respondent herein, to the effect that an inspection was conducted in the Society and certain serious violations were identified during inspection. Consequently, a recommendation was made to conduct an inquiry under Section 81 of the Act. Acting on this report, an inquiry was ordered by the 2nd Respondent through proceedings dt. 24.05.2021 under Section 81 of the Act and a senior inspector was appointed as the inquiry officer. Pending the inquiry, the 2nd Respondent sent a proposal to the 1st Respondent to suspend the petitioners in the interest of the Society since there was prima facie evidence involving criminal misconduct and serious violations. The 1st Respondent on receipt of recommendations of the 2nd Respondent issued the impugned proceedings dt. 01.06.2021 suspending the Petitioners for 6 months from 01.06.2021, in exercise of powers under Section 76-A of the Act. These writ petitions assail the aforesaid orders dated 01.06.2021.

3. The Respondents have filed a counter affidavit and an additional counter affidavit. It is stated in the counter affidavit that on the inspection conducted by the Joint Registrar (Inspection Cell), it was found that the Board of Management, without getting any administrative sanction and without following the procedure had allotted 0.18 cents of vacant land belonging to the society in favor of one Mr. Murugan by entering into a lease agreement with him on 24.09.2020. A further allegation made in the counter affidavit is that the property was leased for a period of 11 years and the vacant site was handed over to the said Mr. Murugan for a paltry lease amount of Rs.25,000/- per month. Therefore, according to the Respondents, a property with a market value of more than Rs.5 crores has been let out for a monthly rent of Rs.25,000and this property is situated at a prime locality. By virtue of this lease deed, the lessee has been permitted to put up permanent structures and the society is incurring a huge loss. On such serious violations being identified at the time of inspection, an inquiry has been ordered under Section 81 of the Act and an inquiry officer has also been appointed. Since the respondents found prima facie material pointing to violation of rules, breach of trust and serious irregularities in allotment of land, it was decided to place the petitioners under suspension pending Section 81 inquiry.

4. Mr.P.H.Aravindh Pandian, learned Senior Counsel appearing on behalf of the Petitioners attacked the impugned proceedings of the 1st Respondent on the ground that it is tainted with malafides, it has been done with a political vendetta and that the procedure contemplated under Section 76-A of the Act has not been strictly followed. The learned Senior Counsel submitted that the subject property had been encroached by anti-social elements and a lot of effort was taken to remove the encroachers with the help of the police. Thereafter, to safeguard the property and to prevent any further encroachment, a compound wall was constructed around the property. During 2015-16, the same was intimated to the concerned authorities and a resolution was also passed by the society to rent out the premises to both prevent any future encroachments and to augment the income of the Society. The learned Senior Co