APHC010621962025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3460]

(Special Original Jurisdiction)

WEDNESDAY,THE ELEVENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 32262/2025 Between:

D.Harinatha Reddy ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S)

Counsel for the Petitioner:

1. GANTA PRASAD Counsel for the Respondent(S):

1. GP FOR COOPERATION The Court made the following:

THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION No.32262 of 2025

O R DE R:

The Writ Petition is filed questioning the Proceedings dated

24.08.2024 issued vide Rc.No.728/2024-C1 by the Respondent No.3/District Cooperative Officer, Chittor, whereunder an enquiry under Section 51 of the Andhra Pradesh Cooperative Societies Act, 1964 ( for short ‘the A.P.C.S. Act, 1964’) was ordered into the affairs of the Respondent No.7 Society, as illegal and arbitrary and consequently set aside the subsequent proceedings issued by the Respondent No.5 under Section 60 (1) of the A.P.C.S Act.

2. The facts leading to filing of the present Writ Petition are as follows:

It is stated that the Petitioner was appointed as the unofficial person in charge of the Respondent No. 7 Society by the Deputy Registrar, Madnapalli, vide Rc. No. 40/2018, dated 05.06.2021, and accordingly he discharged his duties without any blemish till his resignation on 08.06.2024. It is further stated that the C.E.O of the Respondent No.7 Society had addressed a Letter to Respondent No.4 wherein certain allegations were made against the Petitioner and the staff of the Respondent Society and sought the initiation of action. On the basis of the Letter issued by the Respondent No. 4 vide Rc. No. 690/2021-B, dated 20.06.2024, certain directions were given to the Respondent No. 6 to conduct an inquiry and submit a report. In pursuance thereto, the Respondent No. 6 directed the Respondent No. 7 to furnish books of accounts relating to the Petrol Bunk on 12.07.2024.

3. It is further stated that Respondent No. 6 conducted a preliminary enquiry and recommended for inspection under Section 52 of the A.P.C.S. Act. Thereafter, Respondent No. 3 ordered an enquiry under Section 51 of the A.P.C.S. Act, and a report was submitted on 21.07.2025 pointing out certain lapses in the management of the Society. In furtherance thereto, a Notice under Section 60(1) of the Act was issued to the Petitioner on 28.10.2025 to explain the reasons as to why the misappropriated amount mentioned in the notice should be recovered with 18% interest. In the said Notice, the Petitioner was called upon to appear before the Authority concerned on 14.11.2025. Hence, the present Writ Petition.

4. Learned counsel for the Petitioner submits that the statutory requirement for initiation of enquiry under Section 51 of the Act is absent, and therefore, the Enquiry Report and consequential notice under Section 60(1) of the Act cannot be sustained. He further submits that the recommendation of the Senior Inspector/Auditor, dated 02.08.2024, was only an inspection under Section 52 of the Act, and there is no recommendation for for conducting an enquiry under Section 51 of the Act. In support of his contentions, the learned counsel for the Petitioner relied upon the following decisions: i) T. Satyanarayana vs. Joint Registrar/District Cooperative Officer, West Godavari District, Eluru and others ii) Bhimavaram Cooperative Urban Bank Limited, Bhimavaram v District Collector, West Godavari, Eluru

5. The learned Assistant Government Pleader submits that Respondent No. 3, upon being satisfied that there was a prima facie requirement to conduct an enquiry under Section 51 of the Andhra Pradesh Cooperative Societies (APCS) Act, 1964, duly initiated the proceedings under Section 51 of the Act and there is no abuse for the power conferred under 51 of the Act. Learned counsel further submits that the present Writ Petition is an afterthought as it is filed after the enqu