Karnataka Housing co-op board booted out over lapses

Many members of the cooperative have been awaiting land allotments for over 10 years, despite having paid earlier.

In a relief to thousands of investors, the Registrar of Cooperative Societies (RCS) has ousted the board of directors of the Karnataka Postal and Telecom Employees Housing Cooperative Society for a period of five years.

The order was issued last week after multiple layers of inquiry found glaring administrative lapses, including the illegal sale of four acres and 37 guntas of land that was meant for the formation of sites.

DH had reported about the irregularities on July 14.

The order to dissolve the board was first issued by K S Naveen, Additional RCS, in February this year under Section 29(C) of the Karnataka Cooperative Societies Act. The society had challenged it before the RCS, who is a quasi-judicial authority. RCS Capt Dr K Rajendra had temporarily stayed the order and passed the final judgement on July 20, upholding the February order.

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This is seen as a partial victory for the 3,391 members and associate members who have deposited a sum total of Rs 316 crore with the hope of owning sites in layouts in Devanahalli, Nelamangala and Varthur. So far, the society claims to have registered sites in the name of only 515 members.

Most others continue to wait for the sites, and have been doing so for the last 10 to 15 years.

A government-appointed administrator is expected to take over the day-to-day activities of the society, including corrective actions that can put the Bengaluru-headquartered society back on track.

The February order had flagged at least 10 lapses. They are: a staggering 92 per cent of the society comprised associate members even though a 15 per cent cap on such memberships was in force prior to September 2014. Second, seniority order was violated with the society allotting sites to select members. Third, allotment of sites that are way bigger than what members paid for. Fourth, sale of four acres and 37 guntas of land in Nelamangala without approvals, etc.

It may be noted that the first complaint pertaining to the discrepancies of the society was first raised in 2014. Justice, some investors say, would have been delivered early had the cooperative department acted quickly and fixed the lapses.