HON’BLE SRI JUSTICE K. LAKSHMAN W.P. No.13802 OF 2025

ORDER

Heard Mr. D.Goverdhana Chary, learned counsel for petitioner, learned Govt. Pleader for Cooperation appearing for 2^nd respondent, Sri Mummaneni Srinivasa Rao, learned Standing Counsel for Telangana State Mineral Development Corporation (TSMDC) appearing for 5^th respondent and Sri Ramesh Babu Vishwanathula, learned counsel appearing for 7^th respondent.

2. This writ petition is filed to set aside the proceedings No.462/sand/Wadagudem-IV/2023 and proceedings No.437/sand/ Wadagudem-V/2023 both dated 04.04.2025 of 3^rd respondent issued in respect of sand bearing areas in Godavari river area at Wadagudem village, Mangapet Mandal, Mulugu district and consequent agreements both dated 11.04.2025 of 5^th respondent, as illegal.

3. Petitioner's Society is a society registered under the Telangana Cooperative Societies Act, 1964 (for short, ‘the TCS Act’) and has been in existence and doing sand quarrying from Godavari River at Wadagudem of Mangapet Mandal, Mulugu district, duly obtaining license. There are five identified sand bearing areas in Godavari river at Wadagudem Village and out of five, for technical reasons, sand bearing areas I and III could not be allotted, whereas sand bearing area No. II was allotted to the petitioner's society in the year 2022. Agreement dated 12.04.2022 was also entered with District Cooperative Officer/Respondent No.5 and out of the earnings, dividend was paid to its 111 members who depended upon the quarrying.

4. Pursuant to the proceedings of 3^rd respondent, dated

04.04.2025, the District Collector/4^th respondent, allotted sand bearing areas IV and V to Respondent No.7. Respondent No.5 entered into agreements both dated 11.04.2025 with 7^th respondent with regard to extraction of sand in respect of Wadagudem-IV and V sand bearing areas, in utter violation of the provisions of the TCS Act, as 7^th respondent society was formed U/s.5 of the Telangana Mutually Aided Cooperative Societies Act, 1995 (for short, ‘TMACS Act’).

There cannot be two societies in the same village.

5. 7^th respondent society having been formed under TMACS Act, 1995, cannot seek any kind of aid from State Government, Central Government or local Government.

6. 3^rd respondent/The Commissioner for Cooperation, earlier issued a Circular dated 12.07.2022 directing 4^th respondent to ensure that one village shall have only one society and vide memo dated 22.05.2023, withdrew the said circular. The said memo dated 22.05.2023 was challenged in W.P.No.13756 of 2023 wherein this Court vide order dated 06.06.2023 granted status quo and later vide order dated 13.06.2023 granted interim suspension of the said memo. Therefore, Respondent No.4 registered the society of Respondent No.7 in the same village under two different Acts, having knowledge of said interim suspension, is not permissible.

7. 7^th respondent seeking allotment of sand bearing areas for its members who are just 24 which TMACS Act, does not permit and further Section 14 of TMACS Act, requires to mobilise funds in the shape of share capital, deposits, debentures, loans and other contributions from its members only. Proviso of said Section 14(2) (A) clearly mandates the society formed under TMACS Act, shall not accept share capital from the government but may accept other funds or guarantees from the government on such terms and conditions as are mutually agreed thereupon. Therefore in the absence of Memorandum of Understanding, it cannot seek any funds from the Government.

8. Petitioner society was formed in the year 2012 and has 111 members which is evident from the audits conducted to the society in the years 2022-2023 and for the year 2023-2024, whereas 7^th respondent society formed under TMACS Act, is just having 24 members, is trying to deprive the livelihood of 111 members of the petitioner’s society. Therefore, existence of Respondent No.7 and its entitlement for excavation of sand is bad in law and aforesaid proceedings dated 0