IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITION Nos.39165 of 2025 and 608 OF 2026 DATED : 08.01.2026 W.P.No.39165 of 2025 Between Bodla Mallesham & another ... Petitioners AND The State of Telangana Rep. by its Principal Secretary Agriculture and Cooperative Department, Secretariat Buildings, Hyderabad and 4 others ... Respondents W.P.No.608 of 2026 Between Gangam Shekhar ... Petitioner AND The State of Telangana Rep. by its Principal Secretary Agriculture and Cooperative Department, Secretariat Buildings, Hyderabad and 3 others ... Respondents

COMMON ORDER

Since a common issue is involved in these Writ Petitions, they were taken up and heard together and are being disposed of by this common and consolidated order.

2. These Writ Petitions are filed challenging the action of the Deputy Registrar/District Co-operative Officer, Karimnagar, and the Special Category Deputy Registrar of Co-operative Societies, respectively, in initiating surcharge proceedings against the petitioners herein and subsequently passing the surcharge orders dated 18.07.2023 and 14.08.2023, respectively, under Section 60 of the Telangana Cooperative Societies Act, 1964, (for short, “the Act”), without having any jurisdiction and contrary to the orders of respondent No.1 in G.O.Ms.No.10, Agriculture and Cooperation (Coop.II) Department, dated 30.01.2017, as illegal and arbitrary and consequently to set aside the same and to pass such other order or orders.

3. Heard learned counsel for the petitioners and learned Government Pleader for Cooperation.

4. The petitioners in W.P.No.39165 of 2025 were the employees of respondent No.5-society and the petitioner in W.P.No.608 of 2026 was the Chief Executive Officer of respondent No.4-soicety. Respondent No.5-society in W.P.No.39165 of 2025 is a Large Sized Cooperative Society and respondent No.4-society in W.P.No.608 of

2026 is a Primary Agricultural Cooperative Society.

5. Learned counsel for the petitioners submitted that vide G.O.Ms.No.10 dated 30.01.2017, powers of the Registrar under various provisions of the Act were delegated to departmental authorities in view of reorganization of new districts. It is submitted that in respect of Primary Agricultural Cooperative Societies, the powers of the Registrar only under sub-section (1) of Section 116-C of the Act, subject to guidelines issued by the Registrar of Cooperative Societies, were delegated. It is further submitted that subsequently, when action was sought to be taken under G.O.Ms.No.10, the same was challenged by similarly placed in W.P.No.38595 of 2022, and this Court had granted interim relief by order dated 17.10.2022. Thereafter, in W.Ps.No.13532 and 15470 of 2024, this Court had passed final orders holding that G.O.Ms.No.10 did not delegate the powers of the Registrar to the Cooperative Departmental Officials to take action under the Act except for Section 116-C of the Act. It was also observed therein that the respondents admitted that a typographical error has occurred in G.O.Ms.NO.10 dated 30.01.2017 and in order to rectify the same, the Government has issued G.O.Ms.No.1 dated 10.01.2024 conferring powers on the Deputy Registrar of Cooperative Societies/Special Cadre Deputy Registrars/Joint Registrar, to conduct inquiry into the affairs of the PACS. It was further observed that for the period from 30.01.2017 to 10.01.2024, the Government has not delegated any powers to the Special Cadre Deputy Registrars for conducting inquiry into the affairs of the PACS. It is further submitted that in a similar matter, i.e., in W.A.No.622 of 2023, filed challenging the order dated 08.06.2023 in W.P.No.24514 of 2022 passed by the learned Single Judge, the Division Bench of this Court held that the Deputy Registrar had no powers to initiate such action i.e., initiating proceedings under Section 21-AA(1)(b) of the Act against the appellant therein. However, liberty was granted to the Registrar of the Coo