The Cooperation Department Enquiry in to BEML society site allotment allegation about irregularities –

Allegation upheld !!

The Cooperation department, after an inquiry into the allegations, has upheld the charge that former BEML chairman and managing director V R S Natarajan’s site was allotted out of turn.

In its report finalised in April this year, the department has found violations of section 79 (A), (B) of the Karnataka Land Reforms Act, 1961.

The Cooperation department has upheld most of the allegations against the BEML Employees’ Cooperative Society which was, a couple of months ago, accused of violating several norms while allotting sites.
Among other violation of rules, the Society has also violated the model bye-laws for housing societies that prevent them from employing middlemen to conduct their business. The report, which has found all these violations, has observed that the same could be cancelled and has asked the Society to file a compliance report.

Not only does the Section 54 of the Model Bye-laws bar this, but the Supreme Court has also, while hearing Sant Lal Gupta & Others versus Modern Co-operative GH Society, on 18 October, 2010, held that what is barred “directly” under the law cannot be legally effected by an indirect and circuitous contrivance.