HYDERABAD: In interim orders on Thursday, the Telangana High Court suspended the registration of new members in the Jubilee Hills Co-operative Housing Society and also a halt on any deals for its Phase-4 project in Manchirevula, Gandipet.
Justice T Madhavi Devi was hearing a lunch motion petition from businessman Jyotiprasad Kosaraju, who raised concerns about alleged irregularities within the society.
Claiming that his complaints against the society had been ignored, Kosaraju urged the court to order a thorough investigation. He questioned the legality of registering new members and a real estate agreement with private entities that he argued violated the Co-operative Societies Act.
The court directed the principal secretary and registrar of Cooperative Societies to issue notices to the society, asking them to file a counter by the next hearing on November 14.
Advocate Y Rama Rao, representing Kosaraju, argued that the society was acting unlawfully by registering new members while investigations were on. He pointed out that according to Section 19 of the Telangana Co-operative Societies Act, new members could only be admitted if plots were available, and unallocated plots must not exceed 10% of the total. Yet the society was promoting a new project requiring a Rs 5 lakh booking fee for flats, counsel said.
Rama Rao said that the partnership with a private firm was illegal and could cause irreparable harm to existing members, nearly 1,800 of whom were still awaiting plots. He noted that the district collector was unaware of the society’s actions, which lacked official approval.
Counsel for the government stated that while the petition filed on September 24 had not been served, a complaint submitted on October 9 was under review. They requested additional time to gather details.
After considering the arguments, Justice Madhavidevi suspended all new membership registrations and the real estate deal, effective immediately, and instructed the respondents to submit their counter arguments at the next hearing.