The Chhattisgarh High Court dismissed a Public Interest Litigation (PIL) filed seeking indulgence of the High Court to unearth the camouflage and clandestine modus operandi and resultant unconstitutional manner of conduct of State Urban Development Agency (SUDA) in the garb of the society for committing financial irregularities and usurping and defeating the constitutional mandates as mandated by 73rd and 74th Constitutional Amendments.
The facts in narrow compass are that the State Urban Development Agency was registered as Society under the provisions of Chhattisgarh Societies Registration Act, 1973 on 11.06.2001. The SUDA has its own bye-laws. The members of SUDA are government servants and no prior permission was taken from the State Government before the constitution of the Society. According to the bye-laws of the Society, there should be a meeting of the General Assembly within three months of is constitution, but till date no such meeting has been convened and till date no election has been conducted and the office bearers who form the Society are still officiating as office bearers. It is further pleaded that the meeting of the Management Committee has not been convened till date, whereas it should have been convened once every month. Letter was issued on 28.11.2019, which says that functions of the said Society (SUDA), shall be discharged by those employees who are appointed on deputation to SUDA, whereas deputation of the government servant is permissible only in the government departments, but not to a Society.
It is further stated that the Chief Executive Officer of the Society has approved and misused huge amounts without approval or recommendation of the General Assembly or Executive Committee. The details of the Executive Committee have not been sent to the Registrar according to Section 27 of the Act, 1973. There is no audit of the accounts of the Society, which is mandatory as per Section 28 of the Act, 1973. It is further stated that by virtue of the Act, 1973 autonomous or statutory society cannot be established, overriding the autonomy of Municipal Corporation, Municipality or Nagar Panchayat dehors the provisions of Article 243 inserted through the 73rd and 74th amendments in the Constitution of India. It is also stated that no permission was granted by the Department of Finance, State of Chhattisgarh for the constitution of SUDA. It is also stated that SUDA has misused the funds to the tune of Rs. 6,25,32,691.00 and the same is evident from the report for the year 2014-2015 to 2017-2018. It is also alleged that though the SUDA has received a huge amount of Rs.120,33,92,790/-, the same has not been deposited for fixed term to earn interest and fund is being misused.
The petitioners have made serious allegations with regard to financial irregularities committed by the office bearers of SUDA. The petitioners have stated that the SUDA has committed financial irregularities in Pradhan Mantri Awas Yojna, Placement of Agency by entering into false averments, Dustbin Purchase, E-Governance Scheme and Tricycle Purchase Scheme.
In turn, Counsel for the respondents submitted that the petition filed by the petitioners is frivolous and unwarranted Public Interest Litigation at the behest of some other person with the oblique considerations at the belated stage i.e. after 29 years approximately of formation of State Urban Development Agency. They would further submit that the petitioners have not shown any credential with regard to filing of Public Interest Litigation before this Court raising an issue of public importance. They would submit that the petitioners have failed to show the source of information as the documents relied upon by them were taken under the Right to Information Act by one Sanjay Kumar Bhaskar. Their contention would be that the petitioners have made baseless allegations against the Society without there being any report given by Comptroller and Auditor General . It is submitted that SUDA was established in the year 1991, before bifurcation of State of Madhya Pradesh and after reorganization of State of Madhya Pradesh, the SUDA remained in existence in the State of Chhattisgarh too. The SUDA was registered on 04.11.1991 under The Societies Registration Act, 1860 with an objective to implement the Nehru Rozgaar Yojana (NRY) and Urban Basic Service for Poor Programme (UBSP) as well as the other policies launched by the Central and State Government.
It is further stated by counsel for the respondents that the Ministry of Urban Development, Government of India had requested the States to set up a nodal agency for implementation of its schemes. The guidelines were framed on 21.02.1992 for creation of State Urban Development Agency as well as District Urban Development Agencies. According to guidelines, the Minister will be the Chairman of the Society and the Principal Secretary of Urban Administration Department shall act as ex-officio member. The duty of the agencies is to formulate a scheme to be implemented by the District Committees as well as other local bodies for the upliftment of urban poor. The SUDA is to act as a nodal agency for the purpose of implementation of Central Government policies at State-level. It is also submitted that the SUDA was created prior to 73rd and 74th Constitutional Amendments. They would submit that the petition is hit by principle of delay and laches as it has been filed after 29 years from the date of its formation and further the petitioners have not placed complete material to demonstrate their grievances.
While considering the PIL , the Division Bench of Chief Justice Ramesh Sinha and Justice Rakesh Mohan Pandey held that it is not in dispute that the petitioners have filed the petition after 29 years from the date of formation of the SUDA. The SUDA was established on 04.11.1991 in pursuance of direction issued by the Central Government to implement the welfare policies framed by it as well as the State Governments and its object is to implement the programmes in a better manner. The petitioners have placed certain documents, whereas in para3(IV) of the petition, it is categorically stated by the petitioners that this Public Interest Litigation is based on public documents and records available with the petitioners. The petitioners have declared that there is no delay in filing the instant petition. The SUDA was created in the year 1991 prior to 73rd and 74th Constitutional Amendments and the said Society was performing its duties prior to bifurcation of State of Madhya Pradesh, but no objection was raised in these long years and after 29 years, this petition has been filed as Public Interest Litigation. The petitioners have not assigned sufficient ground to hold constitution of SUDA to be void, illegal and unconstitutional.
“The pleading in the petition appears to be frivolous and baseless with regard to financial irregularities and the allegations are founded on self assumption, surmise and conjunctures. The petitioners have also sought relief(s) of Forensic Audit and CBI inquiry. Forensic Audit cannot be ordered on instance of the petitioners in absence of material documents showing financial irregularities and the Central Government as well as State Government has all powers to pass order for audit, if such irregularities are brought into the notice of those authorities. The petitioners have not made any representation to any of the authorities before filing of the instant petition and this fact is pleaded by the petitioners in para- 3 (V) of the petition and they have directly approached this Court”.
Considering the entirety of the facts available on record and the material placed by the petitioners and further considering the delay part i.e. 29 years in filing the instant petition and proposition of law laid down by the Supreme Court, the Bench is of the considered view that the petition is liable to be and is hereby dismissed.