Financial irregularities too noticed by inquiry committee
Excelsior Correspondent
JAMMU, Dec 12: In a significant development, the Registrar of Cooperative Societies, J&K, Mohammad Shafiq Chak has issued a strict order directing the Board of Directors of the J&K Cooperative Housing Corporation Ltd (JKCHC) to initiate immediate action against the former Managing Director, Bharat Bhushan, following established findings of administrative, procedural and financial irregularities and unauthorized continuation in service beyond superannuation.
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As per the order, office of the Registrar Cooperative Societies received a communication dated September 11, 2024 from the Administrative Department forwarding a complaint submitted by the employees of JKCHC along with supporting material alleging administrative, procedural and financial irregularities attributed to the Managing Director.
The grievance was again referred to Registrar Cooperative Societies for examination and necessary action vide Administrative Department communication dated October 14, 2024 forwarded from the office of the Chief Secretary pursuant to a public grievance received through the Union Ministry of Home Affairs.
In pursuance of these communications, the Registrar Cooperative Societies vide order dated December 26, 2024 constituted an inquiry committee to examine the allegations, scrutinize and authenticate relevant records and submit a comprehensive evidence-based report containing verified findings and clear recommendations.
The Additional Registrar, Cooperative Societies Jammu vide communication dated January 23, 2025 further reported an online grievance lodged on the JK Samadhan Portal alleging illegal/unauthorized continuation of the incumbent Managing Director, violation of statutory provisions and serious financial irregularities involving significant public funds. The same was also referred to the inquiry committee.
The inquiry committee, in its findings, established that the statutory provisions contained in SRO-233 of 1988 governing service tenure and continuation were not adhered to by the JKCHC and the extension granted to the Managing Director was without legal authority and in violation of statutory/regulatory framework thereby rendering such continuation void ab inito and ultra vires.
The report further recorded systematic governance deficiencies, inconsistent application of service regulations, and persistent non-submission of statutory audit records and concealment of material information pertaining to ongoing housing projects.
The report of the inquiry committee was forwarded to the Administrative Department, which finally conveyed that the competent authority has accepted the findings and recommendations and accordingly directed initiation of recovery proceedings against the Managing Director in accordance with law in respect of remuneration drawn during the period of unauthorized service continuation.
Now, in exercise of the powers vested under the J&K Cooperative Societies Act, 1989, Rules framed thereunder and in pursuance of the communication of the Administrative Department, the Board of Director of the JKCHC has been directed to ensure strict compliance with SRO-233 of 1988 and all relevant provisions governing service tenure and appointment to the post of Managing Director.
“Since the inquiry committee has established the date of superannuation of Bharat Bhushan as March 31, 2020, he shall be deemed to have retired as Managing Director on the said date. Accordingly, any extension of his services beyond the date of superannuation is hereby declared void ab-initio”, read the order issued by Registrar Cooperative Societies J&K.
The Board of Directors has also been asked to initiate recovery of all salary, allowances and associated financial benefits drawn by Bharat Bhushan beyond the lawful date of superannuation and take further necessary action in respect of the financial misconduct as established by the inquiry committee and submit compliance report within 10 days for perusal by the Government.
Making it clear that there shall be no extension, re-employment or continuation in service in deviation of the statutory framework in future, the Registrar Cooperative Societies has further directed the Board of Directors to initiate the process for appointment of Managing Director strictly as per rules within 7 days and in the meanwhile suitable administrative arrangements shall be made to prevent disruption of official functioning.
It has been made clear in the order that non-compliance shall attract consequences under Section 30 of the J&K Cooperative Societies Act, 1989.
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