THE KARNATAKA LOKAYUKTHA M.S. BUILDINGS v. THE STATE OF KARNATAKA

(BY SRI. MAHANTESH SHETTAR, AGA FOR R1; SRI. RANJITH CHIPLUNKAR, ADVOCATE FOR SRI. PRASANNA KUMAR S, ADVOCATE FOR R2) …RESPONDENTS ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTTION OF INDIA PRAYING TO QUASH BY A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, OR ORDER OR DIRECTIONIN THE NATURE OF A WRIT THE ORDER PASSED UNDER ORDER DATED 2.5.2017 AT ANNEX-G PASSED BY R-1 AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE E.S.INDIRESH ORAL ORDER This petition is filed by the Karnataka Lokayuktha, assailing the order No.266/2016 dated 02.05.2017 (Annexure- G) passed by respondent no.1.

#2. The relevant facts for adjudication of this petition are that Site No.14, 'Q' block, formed in Survey Nos. 132 and 133 of Katriguppe, Banashankari III stage, Bangalore, formed by Bhavani Housing Co-operative Society Ltd., was allotted to one Smt. K.S. Sowmya @ Soundarya and pursuant to the same, an Absolute Sale Deed dated 22.06.1999 was executed in favour of the said allottee-Smt. K.S. Sowmya @ Soundarya, by the Bhavani Housing Co-operative Society Ltd., and Possession Certificate was also issued on 11.07.2001. It is further stated in the petition that the said allotee- Smt. K.S. Sowmya @ - 3 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR Soundarya, died in an air crash accident on 17.04.2004 and after the death of the original allottee, the legal representatives of the original allottee/owner had executed a registered Sale Deed dated 24.09.2005 favour of the complainant- Smt. Siddamma. It is also stated in the petition that the said complainant-Smt. Siddamma was in actual possession of the same after purchasing the aforementioned property on

24.09.2005 and in the meanwhile, the said purchaser came to know about the dispute that had been raised before the respondent no.2 by one Chandrappa on the ground that the allotment made favour of the vendor of complainant/Smt. Siddamma had been held to be cancelled. In the meanwhile, respondent No.2 was working as an Additional Registrar of Co-operative Societies at that time in collusion with the Secretary of the aforementioned society-P.H.Dayanand and others, has set aside the Sale Deed dated 22.06.1999 executed by the society in favour of the original allottee-Smt. K.S. Sowmya @ Soundarya and therefore the complainant has approached the petitioner herein as per the complaint at Annexure-A to the writ petition. - 4 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR

#3. Pursuant to the same, the complaint was registered as FIR in Crime No. 80/2015 by the Lokayuktha Police as per Annexure-B. The petitioner after conducting enquiry, filed a Final Enquiry Report as per Annexure-E to the writ petition. Holding the cancellation of the sale deed by respondent no.2 while exercising his office as Additional Registrar of Co- operative Societies and thereby committing an offence under Sections 464, 466, 468, 471, 420 r/w Section 120(B) of the IPC and under Sections 13(1)(d) r/w Section 13(2) of the Prevention of Corruption Act, 1988, the petitioner has made a representation to the government seeking prosecution against respondent No.2 for the alleged offences referred to herein. The said sanction was rejected by order dated 02.05.2017 (Annexure-G) and being aggrieved by the same, the petitioner herein has presented this petition.

#4. I have heard Sri V.S.Arbatti, learned counsel appearing for the petitioner, Sri Mahantesh Shettar, learned AGA appearing for respondent No.1 and Sri Ranjith Chiplunkar for Sri Prasanna Kumar S., learned counsel appearing respondent No.2. - 5 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR

#5. Sri V.S.Arbatti, learned counsel for the petitioner, contended that respondent No.2, while exercising the power contemplated under the Karnataka Co-operative Societies Act, has set aside the sale deed made in favour of Smt. K.S. Sowmya @ Soundarya and thereby allotted the said site in favour of the sister-in-law of the Secretary of the society, which itself makes it clear that respondent No.2 has acted illegally contrary to the power vested with him under the Karnataka Co- operative Societies Act. It is also argued by the learned counsel appearing for the petitioner, by inviting the attention to the finding recorded by the Enquity Officer as per Annexure-E, that respondent No.2 had taken illegal gratification to help the sister-in-law of the Secretary of the Society involved in the Criminal Conspiracy and therefore respondent No.2 has committed offence under Section 13(1)(d) read with Section 13(2) of the Prevention of Corruption Act, 1988 and therefore the finding recorded by respondent No.1, rejecting the sanction, exonerating respondent No.2 amounts to violation of law and therefore, sought for interference by this court. - 6 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR

#6. Per contra, Sri Mahantesh Shettar, learned AGA sought to justify the impugned order at Annexure-G.

#7. Sri. Ranjith Chiplunkar, learned counsel appearing for respondent No.2, referring to the proceedings in Dispute bearing No.AR(H&M)D2/NMD/18/2013-2014, and contended that respondent No.2, after conducting the proceedings under Section 70 of the Karnataka Co-operative Societies Act, 1959, has nullified the sale deed made in favour of the original allottee-Smt. K.S. Sowmya @ Soundarya and therefore no interference is called for in this petition. It is also contended by the learned counsel appearing for respondent No.2 that this court has limited jurisdiction to interfere with the discretion exercised by respondent No.1 by rejecting the sanction and therefore sought for dismissal of the petition.

#8. In the light of submissions made by the learned counsel appearing for the parties, the undisputed facts are that the Bhavani Housing Co-operative Society Limited has executed the registered Sale Deed dated 22.06.1999 in favour of one Smt. K.S. Sowmya @ Soundarya and thereafter, the original allotee- Smt. K.S. Sowmya @ Soundarya died in an air crash - 7 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR accident on 17.04.2004. It is also to be noted that the legal heirs of the deceased Smt. K.S. Sowmya @ Soundarya, had executed a registered sale deed in favour of one Siddamma (complainant) on 24.09.2005. In the meanwhile, proceedings have been initiated against the original allottee as proceedings dispute bearing No.AR(H&M)Dis.D2NMD/18/2013-14 in the office of respondent No.2, wherein at the instance of the application filed by one Chandrappa under Section 70 of the Karnataka Co-operative Society Act and in the said proceedings respondent No.2 has allowed the application and as such the allotment made in favour of the original allottee- Smt. K.S. Sowmya @ Soundarya was set aside.

#9. Undisputably, respondent No.2 therein, i.e. the original allottee-Smt. K.S. Sowmya @ Soundarya, died in an air crash accident on 17.04.2004 and the order of quashing the registered Sale Deed dated 22.06.1999 made in favour of the deceased Smt. K.S. Sowmya @ Soundarya on 11.04.2014, i.e., order was passed by respondent No.2 exactly 10 years after the death of the original allotee-Smt. K.S. Sowmya @ - 8 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR Soundarya. It is also to be noted that in the said proceedings the allotment made in favour of the sister-in-law of the Secretary of the Bhavani Housing Co-operative Society Ltd. It is also to be noted that the legal representatives of the deceased Smt. K.S. Sowmya @ Soundarya had sold the site, which was allotted in favour of the deceased Smt. K.S. Sowmya @ Soundarya, in favour of one Smt. Siddamma (complainant) as per the registered Sale Deed dated 24.09.2005. In that view of the matter, a perusal of the findings recorded in the Final Enquiry Report produced at Annexure-E makes it clear that respondent No.2 has committed an offence as alleged in Annexure-E to the writ petition.

#10. It is also forthcoming from the order dated

07.04.2016 in WP.No.5963/2016 (Annexure-D), wherein respondent No.2 has preferred the aforementioned writ petition, which came to be dismissed by this court by rejecting the contention raised by respondent No.2 herein seeking benefit under Section 127 of the Karnataka Co-operative Societies Act, which has reached finality. In that view of the matter, the petitioner herein has made out a case that, - 9 - NC: 2025:KHC:41323 WP No. 53762 of 2017 HC-KAR respondent No.1 herein by order dated 02.05.2017 (Annexure- G) has not considered the aforementioned aspects and has whimsically, without application of mind, by considering Section 127 of the Karnataka Co-operative Societies Act which has already been considered and rejected by this Court in the petition filed by respondent No.2 in WP.No.5963/2016 dated

07.04.2016 (Annexure-D) and therefore respondent No.1 has not properly appreciated the entire material on record in a manner known to law and has passed the impugned order at Annexure-G erroneously which requires to be quashed. Therefore, I am of the opinion that the sanction be accorded for taking action against the respondent No.2 in a manner known to law. Accordingly, the writ petition is allowed. SD/- (E.S.INDIRESH) JUDGE HDK List No.: 1 Sl No.: 30 CT: BHK