The Karnataka High Court has ruled that the Additional Registrar of Cooperative Societies has the legal authority to cancel registered sale deeds that originate from illegal allotments made by cooperative societies. The decision brings clarity on the powers vested under the Karnataka Cooperative Societies Act and strengthens regulatory oversight over property transactions involving cooperative housing bodies.
The ruling was delivered while hearing a case related to a land parcel in Channasandra, Bengaluru. The dispute involved a plot that was allegedly allotted by a cooperative society in violation of seniority norms and society bylaws. The beneficiary later sold the property to another buyer, after which the cooperative society challenged the allotment and sought cancellation of the registered sale deed. The Additional Registrar ordered the cancellation, which was subsequently challenged by the purchaser.
The petitioner argued that once a sale deed is registered, it cannot be annulled by a registrar and that only a civil court has the authority to invalidate such documents. However, the High Court rejected this contention, stating that allowing illegal allotments to stand merely because a sale deed has been registered would undermine the objectives of cooperative society laws.
The court observed that the powers granted under the Karnataka Cooperative Societies Act enable the registrar to intervene when allotments are found to be unlawful or contrary to established rules. It clarified that the registrar’s authority includes taking corrective action, provided due process is followed. This includes issuing notices, allowing representations from affected parties, and passing reasoned orders before cancelling any sale deed.
The judgment also noted that individuals who purchase properties stemming from illegal allotments cannot claim absolute protection if procedural violations are established. The court emphasized that cooperative societies function under statutory frameworks and that violations of these frameworks cannot be legitimized through subsequent property transfers.
This ruling is expected to have a significant impact on property transactions involving cooperative societies in Karnataka. It reinforces accountability among society officials and highlights the importance of verifying the legality of allotments before completing purchases. The decision is likely to strengthen transparency and compliance in cooperative housing developments across the state.
Also Read: Visakhapatnam Plot Prices Rise 60% on IT Investment Growth
