High Court Asks Delhi Govt To Frame Rules Preventing Persons With 'Tainted Antecedents' From Holding Key Posts In Cooperative Societies

The Delhi High Court has asked the Delhi government to initiate steps for framing appropriate rules and regulations to prevent persons with criminal antecedents from holding managerial positions in cooperative societies.A Division Bench of Justices Prathiba M. Singh and Madhu Jain issued the direction while dealing with a petition raising concerns over the appointment of a person, previously convicted in a corruption case, as Chief Executive Officer (CEO) of a cooperative society.The petitioner, a member of the concerned cooperative society, had sought directions for framing of rules to ensure that individuals with “tainted antecedents” are not appointed to key managerial posts. It was contended that despite a prior conviction in a CBI case involving serious offences, the individual had been appointed as CEO and continued to function in that capacity.During the proceedings, it was noted that the individual had already stepped down from the post pursuant to earlier directions of the Court, and therefore, the lis qua his appointment no longer survived. However, the Court proceeded to examine the larger issue raised in the petition.The Court observed that a person bearing tainted antecedents, particularly one culminating in a criminal conviction, in serious offences, ought not to be permitted to serve in managerial capacity in such cooperatives Societies. At the same time, the Bench clarified that it is not within the domain of the Court legislate or frame any provision in this regard.As such, it directed the Delhi government to take cognizance of the aforesaid issue and initiate deliberations for framing of a provision in the Delhi Co-operative Societies Act, 2003 and Delhi Co-operative Societies Rules, 2007.“Chief Secretary, GNCTD shall initiate action for framing of appropriate rules/regulations under the Delhi Cooperative Societies Act, 2003 and Delhi Co-operative Societies Rules, 2007 to ensure that such persons with tainted criminal antecedents are not permitted to serve in the managerial capacity of Co-operative Societies. 15. Needless to add, in order to frame such rules/regulations, due consultation with all relevant stakeholders shall be undertaken and necessary deliberations shall be carried out. 16. Upon completion of the aforesaid stakeholder consultation, a final decision shall be taken and appropriate provisions shall be incorporated, either by way of a separate rule/regulation or by incorporating the same within the existing statutory framework under the Delhi Co-operative Societies Act, 2003 and Delhi Co-operative Societies Rules, 2007,” the Court ordered.The entire exercise has been directed to be completed by September 30, 2026.Appearance: Mr. Mohit Kumar Auluck, Advocate with Mr. Vivek Nagar Adv. for Petitioner; Mr. Sumit K. Batra and Ms. Priyanka Jindal, Advocates for GNCTD. Sh. Satish Kumar Sansi, Mr. Zameer Ahmed and Mr. Abhishek Nishtha Sharma, Advocates for R-3. Mr. Ravi. P. Shukla, Mr. Dhruv Shukla, Ms. Upasna Shukla and Mr. Rachit Sharma, Advocates for R-4Case title: Manish Kumar Gupta v. GNCTDCitation: 2026 LiveLaw (Del) 380Case no.: W.P.(C) 17122/2022Click here to read order

High Court Asks Delhi Govt To Frame Rules Preventing Persons With 'Tainted Antecedents' From Holding Key Posts In Cooperative Societies

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High Court Asks Delhi Govt To Frame Rules Preventing Persons With 'Tainted Antecedents' From Holding Key Posts In Cooperative Societies

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