1 WP-10210-2011 srk IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 10210 OF 2010 Arun Nathuram Gaikwad and anr. ...Petitioners Versus The State of Maharashtra & ors. ...Respondents Mr.R.V.Bansode for petitioners. Mr.C.R.Sonawane, AGP for respondent nos.1 to 5. Mr.Kishore S. Patil for respondent nos.10 to 14, 16, 17 and 21. Mr.N.N.Bhadrashete for respondent nos.7 to 9. CORAM: B. H. MARLAPALLE & SMT. NISHITA MHATRE, JJ. November 22, 2011. P.C. 1. This petition filed under Articles 226 and 227 of the Constitution of India prays for directions against respondent nos.2 and 3 to initiate appropriate action within a stipulated period against the members of the managing committee i.e. respondent nos.9 to 20 and based on the Re- Audit Report dated 8/2/2010 in respect of the business transactions of 2 WP-10210-2011 Shiv Jyoti Co-operative Credit Society Ltd. and Kurla Citizens’ Co- operative Bank Ltd. so as to protect the interest of the members / shareholders / depositors of the said societies. We have perused the affidavits in reply filed as well as the Re-Audit report submitted by Shri V.R.Sakhare, Divisional Joint Registrar, Co-operative Societies (Audit), Mumbai Division vide his letter dated 8/2/2010. It may be pertinent to note that the said Re-Audit was carried out as per the letter dated 7/12/2009 issued by the Additional Registrar, Co-operative Societies, Pune and this was noted in our order dated 11/12/2009 passed in Criminal Writ Petition No.1321 of 2009. 2. We have perused the Re-Audit Report submitted by Shri Sakhare and more particularly on the main two issues i.e. (a) the reported theft at the Kurla Branch of the Kurla Citizens’ Co-operative Bank and (b) mismanagement in respect of the dividend warrants. It has been concluded in the Re-Audit report that the actual theft was Rs.2,55,000/- whereas the Bank deliberately reported the theft of Rs.6,14,800/-. The report also concluded that the managing committee of the Patpedhi deliberately included the amount of Rs.3,59,800/- in the stolen amount when the said amount of Rs.3,59,800/- was spent by the managing 3 WP-10210-2011 committee for the animal feed factory at Wai. 3. So far as the second issue regarding the dividend warrants is concerned, it has been noted that prima facie the misappropriated amount was recovered from the account holders and deposited in the account of the Kurla Citizens’ Co-operative Bank. The report further states that Shri Dinkar Krishnaji Gadhave was the Chairman of the Credit Society and one of the Directors of the Kurla Citizens’ Co-operative Bank. He admitted the fraud in respect of the dividend warrants and an amount of Rs.1 crore was invested as deposit by the Credit Society with the Co- operative Bank. The report concludes by directing further action under Section 83 of the Maharashtra Co-operative Societies Act, 1960 against the persons concerned. 4. We, therefore, direct the respondent no.2 to ensure that the respondent no.3 initiates appropriate action as recommended in the Re- Audit Report dated 8/2/2010 against the concerned members of the managing committee of the Credit Society as well as the Kurla Citizens’ Co-operative Bank within a period of four weeks from today and respondent no.3 shall submit a compliance report to the respondent no.2. 4 WP-10210-2011 Undoubtedly the action so directed will be as per the provisions of the Maharashtra Co-operative Societies Act, 1960 and the Rules thereunder. 5. The petition is disposed off in terms of the above directions. (SMT.NISHITA MHATRE, J.) (B. H. MARLAPALLE, J.)