LAHORE: The Lahore High Court held that Registrar Cooperative Societies (RCS) has no authority to send the case punishable under the Cooperative Societies Act 1925 (CS Act) to Anti-Corruption Establishment (ACE).
The court also observed that ACE is also not authorized to initiate an inquiry into the matter on the impugned reference of the registrar.
The court said that the offences under CS Act are either liable to penalty or punishable and added that the power of imposing penalty has been given to the registrar or person authorized by him under the Act whereas power to punish lies with the court.
The court said if any person is aggrieved of any act of members of management committee or officers of society which is an offence under Pakistan Penal Code (PPC) or under any other law relating to public servants, he can file a direct complaint before the special judge.
The court, therefore, said neither the matters of cooperative societies can be inquired into nor prosecuted by the ACE before the special judge.
The court said it is the duty of ACE either to prosecute or recommend for departmental inquiries against the public servants but inquiry under such Act can only be initiated by the registrar at his own or the complaint through the persons mentioned therein, the court added.
The court said that offences under CS Act cannot be sent for prosecution before the court, rather registrar or the person authorized by him is empowered to impose such penalty after affording an opportunity of hearing to the concerned.
The court passed this order in a petition of president Model Town House Building Cooperative Housing Society, Sialkot, Muhammad Khalid who assailed a reference sent by office of the registrar, Cooperative Societies, Punjab, to the Director General, ACE, Punjab.
The petitioner allegedly allotted plots to his relatives under his stamp and signature illegally, unlawfully and without approval of management committee.
It was being tried under NAB Ordinance 1999 but the NAB court sent back to the registrar to be tried by the special judge, Anti-Corruption Court.
The court allowed the petition partly and set aside the impugned reference sent by the RCS, Punjab to ACE for indirect transmission to the court of special judge rather pursuant to direction of NAB court to initiate the process for imposing penalty upon the petitioners or trial of offences punishable under the CS Act.
The court, therefore, directed the registrar to comply with order of NAB court for initiation of proceedings under the law.
Copyright Business Recorder, 2025
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