Topic
Co-operative societies in India are registered entities governed by state or multi-state co-operative laws, with specific tax exemptions and operational rules under statutes like the Co-operative Societies Act and Section 80P of the Income Tax Act.
The Bombay HC held that the Competent Authority erred in rejecting the deemed conveyance application. It ruled acquiescence to separate society formation entitles the petitioner society to proportionate conveyance of 2139.14 sq.mts of layout land, including road FSI benefits, under GR 2018.
The Supreme Court held that RBI's supersession power under Section 36AAA BR Act for multi-State co-op banks is not subject to Article 243ZL's six-month cap, allowing up to five years aggregate. It also ruled that consultation with State Government is not required for multi-State banks, unlike single-State societies.
The Bombay High Court ruled that a collector may not demand a no-objection from a co-operative society as a pre-condition for registering a consent decree under the Registration Act. This clarifies that Section 37A of the Maharashtra Land Revenue Code does not extend to such registrations. Property owners and societies gain certainty that registration cannot be blocked by administrative consent.
The ITAT Bangalore ruled that interest earned on deposits by a credit cooperative is an allowable deduction under Sec 80P(2)(a)(i), interpreting ‘attributable’ to mean income arising from the society’s credit activities. This clarifies that such interest can be claimed as business income, benefiting credit co-operatives seeking tax relief on deposit earnings.
Bombay High Court clarifies that a unilateral deemed conveyance certificate under Section 11 of the Maharashtra Ownership of Flats Act (MOFA) is not conclusive proof of title. Affected parties retain the right to challenge ownership in civil courts, emphasizing the certificate's procedural rather than substantive finality.
Bombay High Court rules that co-operative societies cannot levy maintenance charges without a prior General Body resolution under Section 101 of the Maharashtra Co-operative Societies Act. The court set aside recovery certificates and directed recalculation of charges based on contemporaneous documents, reinforcing procedural compliance for co-operative housing societies.
ITAT Pune reaffirms that co-operative societies engaged in providing credit facilities exclusively to members are eligible for deduction under Section 80P(2)(a)(i) on interest income, distinguishing the Totgars precedent. The ruling reinforces binding judicial consistency for salary earners' credit societies, impacting tax liability calculations for similar entities.
The Kerala High Court has ruled that the Reserve Bank of India cannot supersede a co-operative bank’s board under Section 36AAA without first consulting the state government, making state consultation a mandatory procedural step. This decision strengthens the federal structure of co-operative banking regulation and protects state-level oversight, directly impacting RBI’s regulatory autonomy and co-operative banks’ governance across India.
Bombay High Court holds that MHADA lacks statutory authority to include co-operative housing societies in cluster redevelopment under DCPR 33(9) without their consent, as it violates lease rights and constitutional protections under Article 300A. The ruling reinforces that state agencies cannot override property rights without explicit legal backing.
Karnataka High Court upholds the validity of By-law No. 40 under the Karnataka Co-operative Rules, mandating a common electorate for A and B class members in secondary co-operative societies. The court quashed a 27-year delayed revision, directed immediate vote counting under amended by-laws, and held the Administrator's power to withdraw litigation as ultra vires, reinforcing judicial oversight in co-operative governance.
Bombay High Court rules that non-implementation of Government Resolution (GR) for restructuring crop loans of flood-affected farmers violates welfare benefits, risking NPA classification and CIBIL score damage. The Court mandates immediate compliance to protect farmers from irreversible financial harm.
The Kerala High Court has directed the State Co-operative Employees Pension Board to reassess a retired bank employee's pension by incorporating the full benefit of promoted grades, even if approval was delayed. This ensures that judicial orders mandating salary revision are not rendered meaningless by administrative inertia, setting a critical precedent for co-operative sector employees whose pensions are wrongly calculated based on entry-level posts.
Bombay HC quashes disqualification orders under the Maharashtra Co-operative Societies Act where show cause notices failed to explicitly warn elected representatives of the disqualification consequence. The court reaffirms that procedural fairness mandates clear disclosure of potential penalties to ensure an effective opportunity of defense.
The Bombay High Court has ruled that co-operative societies are subject to Maharashtra’s reservation law only if the government holds share capital, not merely through financial aid or land concessions. This clarifies the scope of 'establishment' under the Act, impacting hundreds of dairy, housing, and agricultural co-ops across the state that rely on non-equity government support.
The Bombay High Court has mandated that an Authorised Officer appointed due to loss of statutory quorum in a co-operative housing society must conclude elections and constitute a new managing committee within two months. This ruling ensures continuity of governance and prevents prolonged administrative vacuum, directly impacting thousands of housing societies across Maharashtra.