Latest news with #MaharashtraCo-operativeSocietiesAct
News18
07-07-2025
- Business
- News18
You Can't Undo Your Own Illegal Act, Says Supreme Court
The Supreme Court ruled that individuals cannot seek legal relief for consequences of their own unlawful acts The Supreme Court has ruled that courts cannot extend relief to individuals who seek to benefit from their own unlawful acts. Emphasising that law does not reward a person for his or her own wrongdoing, the Court refused to assist a litigant who asked the judiciary to nullify his own unlawful sale of land and simultaneously grant him relief based on that illegality. A bench of Justices Sudhanshu Dhulia and Ahsanuddin Amanullah made these observations while dismissing an appeal filed by Machhindranath S/o Kundlik Tarade, challenging a 2019 judgment of the Bombay High Court. The High Court had upheld a single-judge decision that cancelled a trial court's order granting him possession of ancestral land, ruling that the transaction he sought to undo had resulted from his own missteps. The case revolved around whether a 1971 land conveyance which was executed by the plaintiff in favour of a relative and was valid in law, given that the land had already been pledged as security for a cooperative society loan. The land in question, located in Ahmednagar, Maharashtra, measured approximately 15 acres and 17 gunthas and was ancestral property belonging to the plaintiff, Machhindranath. Facing financial distress, the plaintiff had taken a loan from Kendal Bk Vividh Karyakari Seva Sahakari Sanstha Ltd, creating a charge on the property to secure repayment by November 9, 1971. Before repaying that loan, he approached his nephew (also his son-in-law and the first defendant) for a personal loan of ₹5,000. In return, he executed a registered sale deed on November 2, 1971, transferring ownership of the land to the defendant. Later, the plaintiff challenged that sale, claiming it was not an actual sale but a conditional arrangement. The trial court sided with him, declaring the deed void under Section 48 of the Maharashtra Co-operative Societies Act, 1960, which restricts alienation of property under cooperative loan charge. But the High Court reversed that finding, a decision now upheld by the Supreme Court. 'The law cannot and does not reward a person for his own wrongs," the Court declared, cautioning against any judicial endorsement of 'perpetuation of illegality." The Court said it was impermissible for a litigant to ask for a relief that is rooted in an act they themselves committed in violation of law. This case, the Court noted, presented a peculiar scenario: the plaintiff not only admitted to having executed the sale deed in violation of a statutory restriction, but also sought the court's assistance to annul it without the aggrieved party (the lending society) ever initiating action. The Court rejected this as an abuse of legal process. Section 48 of the Maharashtra Co-operative Societies Act provides that a borrower-member cannot alienate property charged to a cooperative society during the currency of the loan. Subsection (e) states that any such transaction would be void. However, the Supreme Court interpreted this 'void" clause as directory, not mandatory, meaning that such a transaction is voidable, not automatically invalid. The Court explained that only the society in whose favour the charge exists has the right to challenge such a transaction. 'In the absence of the society initiating proceedings to nullify the sale, the transaction remains valid in the eyes of the law," the bench ruled. Therefore, the plaintiff who was the original violator could not come to court asking that the sale be undone. Crucially, the society in question never approached any authority to challenge the sale deed or enforce its charge over the land. There was no complaint, legal notice, or litigation initiated by the society. 'The right to challenge such a transaction rests solely with the society that granted the loan. It is not open to the borrower who breached the statutory terms to claim the sale was void, when the society itself has not objected," the Court reasoned. Further weakening the plaintiff's case, the Court pointed out that in the very sale deed executed in 1971, he declared that the land was free from all encumbrances. This undermined his later claim that the sale was only a conditional transaction meant to secure repayment. 'If the land was declared unencumbered, then the argument that the sale was conditional collapses on its own weight," the Court observed. Affirming the Bombay High Court's decision, the Supreme Court held that no relief could be granted to the plaintiff. It directed that the registry prepare a decree sheet to finalise the matter. Location : New Delhi, India, India First Published: July 07, 2025, 18:43 IST News india You Can't Undo Your Own Illegal Act, Says Supreme Court
Time of India
02-07-2025
- Business
- Time of India
Rural banks struggle to recover short-term crop loans as farmers wait for Mahayuti to fulfil waiver poll pledge
Kolhapur: Mahayuti's farm loan waiver promise before the assembly poll has hit rural banks hard, with farmers holding off on loan repayments in anticipation of debt waiver. As of May 31, a staggering 55.46% of short-term crop loan dues remained unpaid across Maharashtra's 31 DCC banks. In the 2024 kharif season, banks in Maharashtra disbursed Rs 40,628 crore in crop loans, primarily those short-term with an 11-month repayment tenure, benefiting 39 lakh farmers. However, preliminary figures accessed from individual District Central Cooperative (DCC) banks and the cooperation department ahead of the June 30 repayment deadline for short-term loans revealed a dismal recovery picture as of May 30, with no notable improvement. Satara DCC bank leads in loan recovery, yet faces a 2% drop in repayment of short-term crop loans, having disbursed Rs 1,800 crore in recoverable loans. Bank's CEO Rajendra Sarkale said, "Last year, around 98% of loans were repaid. By June 30 this year, we have recovered around 96%. The dues are mainly from the drought-prone areas like Man and Khatav tehsils." In March, deputy CM and finance minister Ajit Pawar had appealed to the farmers to repay crop loans highlighting the financial strain. Following this, the banks conducted meetings with primary agriculture societies, informing farmers that failing to repay loans by June 30 would result in losing interest subvention benefits, making their loans interest-free no longer, and instead charging 10.50% interest. Subsequent statements by CM Devendra Fadnavis and deputy CM Eknath Shinde, however, made the farmers to hold off on repayments. CM Fadnavis said, "We won't go back on any promise. Farm loan waiver implementation has rules and procedures. The decision will be made at the right time." Adopting the same stance, Shinde said, "We're committed to farm loan waiver, but need time to study it. We'll appoint a committee to examine the demand. " In the case of Kolhapur DCC bank, chairman Hasan Mushrif, who is also a state cabinet minister, said the bank was expecting the recovery of 97-98% of total Rs 2,587 crore recoverable loan. It, however, ended short of Rs 255 crore. "Loan-waiver rumour led farmers to withhold payments, limiting our recovery to 90%. Govt is seriously considering loan waiver, as announced by CM Fadnavis. However, we in the cooperative sector believe timely loan repayments should qualify farmers for waivers. We'll work towards this, as defaulting shouldn't be seen as the only way to benefit from waivers, which could harm banks and credit societies," Mushrif said. Sangli DCC saw a 5% drop in short-term crop loan recovery, with 75% of loans recovered till June 30, up from 68% at May-end. Due to a Rs 490-crore shortfall, bank's chairman Mansingrao Naik extended the repayment deadline to July 5. Farmers missing this deadline will receive a recovery notice under Section 101 of the Maharashtra Co-operative Societies Act, 1960. Nashik DCC bank disbursed Rs 411.30 crore in crop loans, of which Rs 207 crore is due. With an outstanding of 77% on short-term crop loans, Nashik DCC bank ranks among the top banks with poor recovery rate. "We have restructured the loans with lower interest rates to encourage the farmers to pay the dues. For instance, the dues of Rs 1 lakh will incur just 2% interest, and for Rs 1-5 lakh, it will incur just 5% interest," Nashik DCC bank administrator Santosh Bidwai said. Vijay Autade, a cooperative sector expert, said, "The poll promise made farmers hopeful. Besides, the farmers believe that if they pay the loans, they will not be eligible for a waiver. Govt brought a scheme to incentivise the farmers paying loans regularly. However, three years down the line, many farmers have not received the amount. The primary agriculture credit societies bear the brunt at the end, as they are left with less cash flow to disburse new loans. "
Economic Times
29-05-2025
- Business
- Economic Times
Sunteck Realty secures Rs 1,100-crore redevelopment project in Mumbai's Andheri
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Listed realty developer Sunteck Realty has secured rights to redevelop a housing society spread over a 2.5-acre land parcel in Mumbai's western suburb of Andheri east, through a society-led redevelopment agreement, with expected revenue potential of around Rs 1,100 project is expected to hold a total construction and development potential of over 1 million sq ft, including 275,000 sq ft of free sale component, said persons with direct knowledge of the company is currently working on approvals and the construction is expected to commence following the formal handover of the site by the society, with completion targeted within 36 to 48 months project's total investment is expected to be around Rs 750 crore including construction cost, floors-space index premium, rentals and corpus to the society. The developer is likely to fund the entire development through internal established by LIC employees, the society comprises a total 11 buildings, construction of which was completed in 1968. The society was built entirely on an ownership basis by LIC staff.'The company has recently signed the 79 A agreement with the housing society and is currently working on the further planning of the project,' said one of the persons mentioned agreement with the housing society under Section 79 A of the Maharashtra Co-operative Societies Act , 1960 requires majority consent of members before finalizing redevelopment plans. This means the society and the developer have agreed to follow a structured process that emphasizes transparency, member rights, and legal Thursday, Sunteck Realty informed the stock exchanges about securing the rights for redevelopment of this housing society. ET's email query to the company seeking further details of the development agreement remained unanswered until the time of going to estate projects involving the redevelopment of old housing societies and rehabilitation are the mainstay of the Mumbai region's property market, as the land-starved city and its peripheral areas have few vacant land 2023, the government of Maharashtra stated that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the state government's decision and ongoing buoyancy in the property has been playing a key role in pushing the redevelopment of many old and dilapidated housing societies across key cities in the state.
Time of India
29-05-2025
- Business
- Time of India
Sunteck Realty secures Rs 1,100-crore redevelopment project in Mumbai's Andheri
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Listed realty developer Sunteck Realty has secured rights to redevelop a housing society spread over a 2.5-acre land parcel in Mumbai's western suburb of Andheri east, through a society-led redevelopment agreement, with expected revenue potential of around Rs 1,100 project is expected to hold a total construction and development potential of over 1 million sq ft, including 275,000 sq ft of free sale component, said persons with direct knowledge of the company is currently working on approvals and the construction is expected to commence following the formal handover of the site by the society, with completion targeted within 36 to 48 months project's total investment is expected to be around Rs 750 crore including construction cost, floors-space index premium, rentals and corpus to the society. The developer is likely to fund the entire development through internal established by LIC employees, the society comprises a total 11 buildings, construction of which was completed in 1968. The society was built entirely on an ownership basis by LIC staff.'The company has recently signed the 79 A agreement with the housing society and is currently working on the further planning of the project,' said one of the persons mentioned agreement with the housing society under Section 79 A of the Maharashtra Co-operative Societies Act , 1960 requires majority consent of members before finalizing redevelopment plans. This means the society and the developer have agreed to follow a structured process that emphasizes transparency, member rights, and legal Thursday, Sunteck Realty informed the stock exchanges about securing the rights for redevelopment of this housing society. ET's email query to the company seeking further details of the development agreement remained unanswered until the time of going to estate projects involving the redevelopment of old housing societies and rehabilitation are the mainstay of the Mumbai region's property market, as the land-starved city and its peripheral areas have few vacant land 2023, the government of Maharashtra stated that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the state government's decision and ongoing buoyancy in the property has been playing a key role in pushing the redevelopment of many old and dilapidated housing societies across key cities in the state.
