Court orders defreezing of APNGOs Housing society

Hyderabad: Justice Nooty Ramamohana Ra of the High court at Hyderabad on Wednesday directed the authorities to defreeze the bank account of the APNGOs Mutually Aided Cooperative Housing Society.

In a conditional order the judge made clear that the society shall make payment of income tax arrears only by procuring a crossed account payee demand draft, payment of salaries and wages to the staff and other employees through crossed account payee cheques, no fixed deposit receipts should be encashed or encumbered in any manner, no further developmental activities shall be carried out. The judge said the society shall faithfully maintain the account of the expenditure incurred by it and place a copy thereof before the district cooperative officer for purpose of possible verification.

The order came in a writ petition filed by the society complaining that the police had directed the bank to freeze its account based on a complaint lodged by the district cooperative officer for alleged violation of provisions of the AP MACS Act. The petitioner said the developmental activities in the society's land had come to a standstill due to non-payment of various bills.

Taking into consideration that the society has to meet certain essential expenses such as payment of salaries to its staff, income tax arrears, fuel and electricity consumption charges etc., the judge permitted the society to operate the bank account. The judge felt that a blanket order of allowing the petitioner society to operate the savings account by liberally withdrawing money there from, may prove counter productive.

The matter was posted for further consideration after two months.