Madras High Court rejected a petition by Perambur-based Cooperative Building Society seeking directions to the TN government to scrap the amendment in the TN Cooperative Societies Act 1983, allowing registrars to suspend the elected presidents and vice-presidents, reports DT Next.
However, the state govt. argued the amendment was made only for the good of the cooperative societies to stop misappropriation of funds and breach of trust by their elected heads. The court agreed with the state govt.’s argument.
Rejecting the petition, the court observed that the amended rules would allow the registrar to stop swindles in cooperative societies.