Peoples Action and Public Account vs State and Others

During the course of hearing of this Public Interest Litigation some information has been brought to our notice in regard to the working and

functioning of National House Building Cooperative Society. It is stated that one Shri Ram Prakash Puri S/o Shri Bhag Mal R/o Jammu died in the

year 1985 yet his power of attorney was got executed in the year 1998 in favour of one Shri Chander Shekher S/o Shri T. D. Sharma R/o 421-A

Gandhi Nagar, Jammu and Shri Arun Kumar Gupta S/o Shri Dwarka Nath Gupta R/o 170 Rehari Colony, Jammu. After the execution of the

power of attorney, sale seed was executed on behalf of the deceased by the said attorney on 24. 8. 1999 for sale of land in favour of National

House Building Cooperativbe Society Ltd. in regard to land measuring 4 kanals situated at Channi Rama, Tehsil Jammu, for a consideration of Rs.

10,80,000/-. It is sated that in this sale transaction, the National House Building Cooperative Society was represented by Assistant General

Manager( Personnel) of the Housing Corporation. It is stated that the power of attorney was first got executed and then sale transaction took place

on the basis of the said power of attorney.

Another instance which has come to our notice is that in May 2003, land measuring 20 kanals 11 marlas situated at Village Thalori Gujjran,

Tehsil Samba, was purchased by the Housing Corporation from one Shri Sat Pal S/o Parma Nand R/o Thalori Brahmana through his attorney

holder Shri Chander Singh S/o Sh. Hoshiar Singh R/o Village Gurha slathian for an amount of Rs. 61, 65,000/- meaning thereby that the cost of

land per kanal comes to Rs. 3,00,000/-. It is stated that the cost of the land in this particular area by all liberal estimates does not exceed Rs.

50,000/- per Kanal. In this way an amount of Rs. 50,00,000/-, belonging to the Corporation, was swindled by the persons at the helm of the

affairs of the Housing Corporation. It has also been brought to our notice that Sat Pal is a poor person in Thalori Brahmana and it is believed that

he must not have been paid such a huge amount of consideration. Copy of the Sale Deed has been attached with CMP No. 1440/2003 as

annexure B1. The allegation is that the land, which was worth Rs. 50,000/- per Kanal has been purchased at the rate of Rs. 3,00,000/- and, in this

way, a sum of Rs. 50,00,000/- has been embezzled and is a very serious matter.

One more instance is that Budgam Cooperative Housing Society Ltd, Srinagar, or Friends Housing Society Ltd, Airport Road, Srinagar (both

Societies affiliated to Housing Corporation) purchased land through one Shri Mohd Yousuf Dar S/o Ghulam Rasool Dar R/o Bagati-

Barzulla,Srinagar, and account was got opened with the J & K Sate Cooperative Bank Ltd. Srinagar, vide Account No. 949/16th dated 15. 10.

1999. The above-named account holder was introduced by one Shri Mohd Sufi Dar S/o Khawja Abdul Karim Dar, an employee of Cooperative

Department, Srinagar. It has been noticed that instead of Mohd Yousuf Dar (account holder of Account No. 949/16th dated 15. 10. 1999) the

bank record contains the photograph of one Umar Ayub Rishi S/o Abdul Aziz Rishi R/o Harwan Srinagar who was then serving as Junior

Assistant in the office of Deputy Registrar Cooperatives, Srinagar. It means that the said account was operated by Umar Ayub Rishi by

impersonating himself as Mohd Yousuf Dar and this money transaction is for an amount of rupees fifty lacs financed by the Housing Corporation. It

is alleged that within a period of six months an amount of approximately Rupees fifty lacs was withdrawn from the said account and who has

embezzled that amount is not known. It is stated that again some of the officials of the Jammu and Kashmir Housing Corporation were involved in

this scandal as well. The Jammu and Kashmir Housing Corporation Ltd. is an apex body of the various Housing Societies in the State of Jammu

and Kashmir. The purpose for which these Housing Societies were set up, especially Jammu and Kashmir Housing Society, which is an apex

body, is to acquire land, develop the Housing Projects and in this regard loans are obtained from SIDCO and LIC and other financial institutions.

Money which is collected by the Jammu and Kashmir Housing Corporation Ltd., being public money, cannot be allowed to be embezzled and, if

the allegations noted above are correct then, it requires thorough probe and responsibility is required to be fixed on the persons who have

embezzled such huge amount.

Accordingly, we direct the Sr. Superintendent of Police, Crime and Railways, Jammu, to register formal FIR(s) on the basis of information

which finds mention in this order and also in paragraph 6B(i), 6B(ii), B(iii), 6(C) and 6(D) of CMP (PIL) No. 1440/2003. Registrar Judicial shall

send copy of this order alongwith copy of CMP No.1440/2003 together with copies of annexures A1, A2, A3 B1 and C1 appended thereto to

Sr. Superintendent of Police, Crime and Railways, Jammu, who shall depute an investigating team headed by an Officer not below the rank of a

Deputy Superintendent of Police to investigate this matter. Status report regarding investigation shall be submitted within two months.

Mr. A. H. Naik, Learned Advocate General, has stated that information in regard to the investigation, if any, pending or conducted relating to

FIR No. 3/95 dated 12. 1. 1995, registered with Vigilance Organisation u/s 5(2) PCAct 2006, shall be obtained and submitted on the next date of

hearing.

Mr. B. S. Manhas, appearing on behalf of the Jammu and Kashmir Cooperative Union Ltd., Jammu, shall get an affidavit filed of the Chairman

of the Jammu and Kashmir Cooperative Union Ltd., as to when the last election of the Cooperative Union was held. List of the members of the

Society shall also be filed alongwith the affidavit. Mr. Manhas has stated that the elections are to be held on 13. 1. 2004. Result of the election,

which, as per the statement made at the Bar, is scheduled to be held on 13. 1. 2004 shall also be filed before this Court in a sealed cover.. Result

of the election shall not be declared without the permission of this Court.

As regards the Jammu and Kashmir Cooperative Supply and Marketing Federation Ltd., Jammu, (here-after referred as JAKFED), Mr.

Learned Advocate General has stated that the investigation is almost complete and report in this regard shall be filed within this week and copy of

the same shall be given to the counsel for the petitioner.

CMP No. 1353/2003

In this application prayer has been made for impleadment of applicant as a party.

Having regard to the averments made in the application, we allow the same and direct impleadment of the applicant as a party to this petition.

Registry to carry out necessary correction in the index of the case.

Mr. B.S.Manhas ,Advocate has stated that he would file counter affidavit to CMP 1440/2003 on or before the next date of hearing. He may

do so, if so advised. Mr. Learned Advocate General shall also appraise this Court regarding the election of JAKFED, whereby Mohd Ayub Khan

has been elected as Chairman of the JAKFED.

Matter be listed after vacation.