Savadi's volte-face: Admitting outsiders in HBCS wrong

Tainted former Co-operation Minister Lakshman Savadi, who had two years ago defended the admission of non-members in a House Building Co-operative Society (HBCS), now says it is a violation. 

In a telephonic conversation with Deccan Herald, Savadi said: “The few co-operative housing societies which admit outsiders into their fold are doing it illegally. There is always a seniority set for the admission of people into HBCSs and allotting sites.

Unfortunately, a few societies have been doing that against the law.” Savadi had, on March 2, 2010, as the minister for cooperation - responding to a question posed on a High Court ruling specifically for employees HBCS - had said: “But the Registrar of Co-operative Societies has issued a direction under the powers vested on him under Section 30 B of the Karnataka Co-operative Societies Act, 1959, to all the house building co-operative societies to adopt the bye-laws in the admission of associate members to the extent of 10 per cent of the regular members and 10 per cent of the associate members are eligible for the allotment of sites in house building co-operative societies.”

In what seems to be a fallout of losing his portfolio after getting caught in the ‘porngate’ scandal, Savadi’s statement on admission of non-members into HBCSs has raised curiosity over the department’s stand on the eligibility of non-members being awarded sites across the State

Justifying that the department under his reign had taken steps to correct the anomalies in the model bye-laws and the Karnataka Land Revenue Act, Savadi nonetheless admitted that few of the HBCSs were in fact in possession of agricultural land as opposed to the blanket ban imposed by a circular by the Revenue Department. 

Circular number RD 44 LGP 85, dated August 29 1985, stated: “It may be pointed out that the House Building Co-operative Societies are prohibited to hold agricultural land under the provisions of Section 79(B) of Karnataka Land Reforms Act, 1961.”

“Most of these societies have been taking possession of agricultural land by hiring middlemen to convert it for non-agricultural purpose, to be utilised by the HBCSs. But they have no other option,” suggesting circumvention of laws by the HBCSs.