LAHORE: The Lahore High Court (LHC) has ruled that the Registrar Cooperative Societies (RCS) lacks the authority to refer cases under the Cooperative Societies Act 1925 (CS Act) to the Anti-Corruption Establishment (ACE).
The court also held that ACE is not authorized to initiate an inquiry based on a reference sent by the registrar.
The court clarified that offences under the CS Act are either penalized with fines or punishable by law. It stated that the registrar or an authorized officer has the power to impose penalties, while only a court can issue punishments.
If an individual is aggrieved by an act of cooperative society officers or management committee members that constitutes an offence under the Pakistan Penal Code (PPC) or any other law governing public servants, they may file a direct complaint before the special judge.
The court emphasized that ACE cannot inquire into or prosecute matters related to cooperative societies before the special judge. It noted that ACE’s mandate is to prosecute or recommend departmental inquiries against public servants, but inquiries under the CS Act must be initiated by the registrar or a complaint filed by authorized individuals.
Additionally, the court ruled that cases under the CS Act cannot be forwarded for prosecution in court; instead, the registrar or an authorized person must impose penalties after providing an opportunity for a hearing.
The ruling came in response to a petition filed by Muhammad Khalid, president of Model Town House Building Cooperative Housing Society, Sialkot, who challenged a reference sent by the RCS Punjab to the Director General of ACE Punjab. The petitioner was accused of illegally allotting plots to relatives using his stamp and signature without management committee approval.
The case was initially tried under the NAB Ordinance 1999, but the NAB court redirected it to the registrar for trial in the Anti-Corruption Court.
The LHC partially allowed the petition and annulled the RCS’s reference to ACE, stating that the registrar should proceed with penalties or prosecution under the CS Act as directed by the NAB court. The court instructed the registrar to comply with the NAB court’s order and initiate proceedings under the applicable law.
