HON'BLE SRI JUSTICE NYAPATHY VIJAY
WRIT PETITION No.14230 of 2025

O R DE R:

This Writ Petition is filed questioning the order passed by Respondent No.3 vide Rc.No.490/2023/C, dated 29.05.2025, superseding the Petitioner-Society for deliberate and willful disobedience of statutory directions issued by the Registrar.

2. The facts in brief of the case are that: The Petitioner is a Society registered under the provisions of the A.P.Cooperative Societies Act, 1964 (for short 'the Act') with a primary object of acquiring land and obtaining layout permissions and allotting plots to eligible members of the Society. It is stated that the Petitioner-Society had developed several layouts and allotted plots to its members in accordance with the approvals and permissions given by the authorities from time to time. It is stated that the Managing Committee of the Society was duly elected on 03.02.2022 pursuant to the General Body Meeting and resolution.

3. While so, on 26.10.2023, Respondent No.3 had issued a notice vide proceedings bearing Rc.No.490/2023/C under Section 54 of the Act. Pursuant thereto, the Petitioner had submitted their reply. Thereafter, Respondent No.3 again issued a letter Rc.No.490/2023/C, dated 18.03.2025 and the same was replied by a letter dated 03.04.2025. Eventually, on 22.04.2025, Respondent No.4 had issued proceedings bearing Rc.No.1405/2023-B (Coop) under Section 52 of the Act, directing a statutory inspection into the Society along with alleged financial irregularities. It is stated that the said proceedings had no legal basis and were initiated only at the behest of strangers, who do not have any nexus to the Petitioner-Society.

4. Thereafter, Respondent No.3 issued a showcase notice under Section 34 of the Act on 06.05.2025 calling upon for an explanation from the President, Vice President and Managing Committee of the Petitioner-Society as to why it should not be superseded for disobedience of statutory directions issued by the Registrar and improper functioning of the Petitioner-Society. It is stated that the President and Vice President had submitted an elaborate explanation to the said notice on 21.05.2025 explaining every aspect of the showcase notice. However, Respondent No.3, without analysing the explanation given by the Petitioner, had passed the impugned order superseding the elected committee. Hence, the present writ petition.

5. In the counter affidavit filed by Respondent No.3, it is stated that numerous petitions have been received from the members and non-members of the Society alleging illicit acts in entering MOU with Respondent No.8. The Officers have noticed grave misdeeds and violations of the provisions of statutory directions issued under Section 4(2) of the Act and Rules and also bye-laws of the Society without tender process and contrary to the statutory directions issued under Section 4(2) of the Act and Rules. It is also stated that there is non-rectification of the defects pointed out during the course of the audit for the last several years by the previous managements and also the present managing committees. The previous management had collected an amount of Rs.30,000/- from each member as corpus fund, but the money is not accounted for. It is also stated that certain members of the Managing Committee have got more than one plot/flat secured in the landed properties of the Society during the term of the concerned Managing Committees, which is in contravention of the Rules and Regulations and the averments and contentions of the Petitioner in the affidavit are totally false.

6. Counter affidavit is filed by Respondent No.8 stating that it had entered into a legally valid Memorandum of Understanding (MOU) dated 02.01.2023 with the Petitioner for development of land measuring Ac.16.00 cents in Sy.No.30 of Vepagunta Village after due negotiations. As per the MOU, the 8th Respondent has to construct the flats adhering to RERA provisions apart from resolving/incurring entire litigation e