CIRCULAR MEMORANDUM OF THE SPECIAL COMMISSIONER FOR COOPERATION AND REGISTRAR OF COOPERATIVE SOCIETIES, ANDHRA PRADESH, HYDERABAD
Present: M.V. Seshagiri Babu, I.A.S
SPl. Commissioner & Registrar
SPl. Commissioner & Registrar
Rc.No.14890/2014/PACS Dated:20.08.2015.
Sub:- Cooperation Department – Misappropriation – Prosecution of delinquents involved in misappropriation of funds in Cooperative Societies – Instructions withdrawn – Regarding.
Ref:- Circular Memo Rc.No. 15091/2007/PACS-Gen, dated 17-05-2007 of the CC&RCS, AP, Hyd.
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The attention of the District Cooperative Officers in the State is drawn to the subject and reference cited. The District Cooperative Officers are aware that in the reference cited instructions were issued, among others, that the District Cooperative Officers should get the Surcharge Inquiry completed first and submit proposals for sanction of prosecution if sufficient grounds are found in Surcharge Inquiry.
2. The District Cooperative Officers are informed that the said instructions were issued in the light of the orders of Hon'ble High Court in W.P. No. 27774 of 2005 dated 08-11-2006, in which it was observed as follows:
"Once the Surcharge proceedings which were initiated on the basis of the Inquiry u/s 51 of the Act were concluded holding that there is no material against the petitioner to hold them liable for any deficiency caused to the assets of the society and dropped the proceedings/the question of further filing a criminal complaint does not arise / even if permission is granted by the Registrar as required u/s 83(3) of the Act. Once the Surcharge proceedings are dropped, the criminal proceedings against the petitioners on the basis of the very same Inquiry report u/s 51 of the Act submitted by the officer concerned earlie0 could not have been taken up".
3. It is observed that the departmental officers are not initiating criminal proceedings in view of the instructions issued in circular memo cited, even though it was specifically recommended in Statutory Inquiry / Inspection reports for criminal action where loss caused to the funds of the societies. The District Cooperative Officers are well aware that the Surcharge proceedings initiated on the findings of Section 51 Inquires / 52 or 53 Inspections are not being finalized by the departmental officers for years together due to various reasons.
4. In one case i.e., D. Prabhakar Reddy Vs District Collector, Kurnool, and others, 1997(1) ALD 500 it was held that the proceedings contemplated under Section 60 (1) of APCS Act are entirely different. The said proceedings are in the nature of recovery proceedings. Merely because there is a possibility of initiating proceedings u/s 60 (1) of the Act, there is no legal objection to the initiation of criminal proceedings. In law, there is no bar on or prohibition against initiating criminal proceedings, if so, warranted by the facts of the case. Initiation of prosecution would not amount to putting a person in double jeopardy within the meaning of clause (2) of Article 20 of the Constitution if Surcharge proceedings are also initiated against the said u/s 60 (1) of the Act.
5. In order to make good the loss caused to the society and to punish the culprits at the earliest possible, the Civil and Criminal actions in accordance with Law and procedure prescribed shall be initiated simultaneously as both are different and distinct.
In view of the above, the instructions issued in the circular memo cited are here by withdrawn.
Sd/-M.V. Seshagiri Babu
Spl., Commissioner & Registrar
To
All the District Cooperative Officers in the State
Copy to the CC&RCS, Telangana State, Hyderabad.
Copy to the Additional Registrars I & II in Head Office.
Copy to all the Joint Registrars in Head Office.
Copy to all the Deputy Registrars Head office.
Copy to all the Divisional Cooperative Officers in the State (through DCO concerned).
Copy to Stock file.
Copy to the CC&RCS, Telangana State, Hyderabad.
Copy to the Additional Registrars I & II in Head Office.
Copy to all the Joint Registrars in Head Office.
Copy to all the Deputy Registrars Head office.
Copy to all the Divisional Cooperative Officers in the State (through DCO concerned).
Copy to Stock file.
