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Karnataka Housing Societies Muddle- Appeal to State Government -Judiciary for Action

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KARNATAKA GOVERNMENT MUST ACT TO PROVIDE SUCCOUR TO MEMBERS WHO HAVE INVESTED IN HOUSING SOCIETIES WITHOUT ANY RESPITE FOR OVER DECADES!!! TAKE ACTION IMMEDIATELY!! Every citizen aspires for a shelter of his own and Bangaloreans are no different. In the 70s the official agency Viz: City Improvement Trust Board (Now christened as Bangalore Development Authority) was expected to fulfill this role. While the demand for sites were more, the actual availability was less. Since it was a Government organisation, they also brought reserved sites for certain categories and those who tried in the General pool had to wait for several attempts and for years. Further restrictions imposed on domicile and other parameters posed problems. This gave an opportunity of group housing schemes under the Cooperative societies act and housing societies flourished. These societies were allowed to form layouts of their own and the Government did not interfere in their affairs except to sanction their permission for acquisition and certain parameters that were expected to be adhered. The revenue department of the Government approved these private layouts under Notifications 4 (1) and 6 (1). Once these formalities were complied then members were entitled to sites. Obviously the rush turned towards the housing societies. Political leaders also patronized these managements. Unsuspecting citizens not knowing these intricacies invested their hard earned money in these societies with a hope of getting a site. Managements became so strong that they conceptualized new schemes to hoodwink and attract people. People pledged their life savings including their Provident fund amounts, took loans from various financial institutions, pledged jewels and various other means to fulfill their dream. Ultimately the issue turned political and the Government appointed a Commission of Enquiry and asked Dr. G.V K Rao to investigate. The activities of these housing societies came under the scanner and all the Housing societies were asked to stop until the report was finalized. This sent a shock to all the genuine members who did not err or suspect anything untoward. Neither did they know what was happening. The report was submitted within a record time and the Government was supposed to Act. However, subsequent Governments did not care to take any decision as it mattered little to them. Meanwhile, the errant housing societies took the opportunity to set right all the irregularities in the report. . Most of these societies knowing the intricacies of the case happily made merry with the collected amount and diverted all the funds to various activities. Members have no respite even after 30 yrs and are still waiting in hope. However nothing is happening on any front. The bureaucrats who interfered were all bribed and kept in good humor so that they do not take any action or interfere. The loot was shared. Successive Governments did not bother and were not even aware of the magnitude of problem, as they had not visited them. Members had no other powers vested in them except Annual General Body of the Society, which mostly were not conducted as a sham and without proper intimation/ information. They were more of a mockery and routine. Elections to the Management are a farce, as records will indicate. They are mostly well planned, rigged.. Thus nothing has been done at all. Many of the Members have expired and their nominees are fighting for their investment in proxy. Many are denied even this right by means of various interpretations in the byelaw and prevented from getting their dues. All these are neatly embezzled into private accounts as well. Some Societies after being reported of various omissions were superseded that too repeatedly many times but these managements are quite shrewd and return after some time. Since there are no sites and caught in various legal tangles they escape hoodwinking the members. Societies side track the issue by stating that they are caught up in Courts and even give false numbers to unsuspecting people who do not tend to verify. The societies are now just a dummy and the entire activity has been diverted to various other lucrative businesses such as Cooperative banks with plenty of branches and other business ventures. Though these have no official sanction, yet they continue because there is nobody to question. Members have approached the Courts and strictures have been passed by Supreme Court and also High Courts But they are not adhered Recently the Honble High Court of Karnataka in its order against Amar Jyothi House building Cooperative Society dated 12.03.2004 in Writ Petition no 43074-76/2003 has directed the Principal Secretary-Cooperative Department and Registrar of Cooperative Societies to conduct enquiry and take necessary action within 4 months regarding the various allegations made by the petitioners about the affairs of the above society. Even this is not adhered. A Corps of detective (COD) report against the same society is also stated to have indicted the Management of this society (Viz: Amar Jyothi House building Cooperative Society) by name and submitted the report to Government for further course of action. Nothing seems to have been done even on this. In the case of Sree Venkateswara House building Cooperative society with all members belonging to the Aeronautical Development Agency A Government of India Organisation, there are several omissions and commissions. There are several scientists in these premiere organisations that are victims. Their own employee who happens to continue as the Administrative Manager does the cheating Similarly Vyalikaval House Building Cooperative society, Bapuji House building cooperative society (The President was arrested recently of cheating) and several others are culprits. We request you to sign the petition demanding that the Government take strong action and give proper relief to all the members who are innocent and victims of fraud, misconduct and cheating. We hope to address this petition to the Honble Chief Minster of Karnataka, Honble Minister of Cooperation, Leader of the Opposition & The Honble Chief Justice of Karnataka. We are very hopeful that something positive will happen.


Grahak Shakti is a not for profit, non-political voluntary Consumer Organisation empowering Consumers of their Duties & Rights. We have a powerful organisational base and more than 25 activists heading specialised cells, committees. They work in a honorary capacity and concentrate on each topic of concern for consumers. We believe in the holistic approach to the Consumer Movement that lays stress on all the 8 rights of Consumers: Viz: The Right to: Satisfaction of Basic needs, Safety, Be informed, Choose, Be heard, Redressed, Consumer Education & a healthy Environment. We also take up strong crusades like this one and several other important issues. Sometimes we also synergies with other groups / organisations and work together to accomplish our task We have made an impact on many issues and convinced authorities to see our point of view. We have also succeeded in drawing the attention of the Court through Public interest litigations as well as impleading petitions. We strive and believe that the benefits should reach out to the common consumer. Therefore our aim is to concentrate more on `grass root and fieldwork, rather than air conditioned discourses and sophisticated, cosmetic style of working. It is therefore more authentic and straight-forward rather than diplomatic, couched in soft languages to suit the authorities. Nevertheless, we also believe in meeting, discussing and sharing our views with the decision makers, authorities to ultimately reach out to the masses. We have several structured programmes to achieve the objectives. *******
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