6-wp.11139.2026.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.11139 OF 2026 Shailaja Girish Gaste ...Petitioner Versus The Deputy Registrar Co-operative Societies, Thane City and Ors. ...Respondents Mr. Aniesh S. Jadhav with Mr. Rushikesh Kekane, Ms. Nikita Kaushik and Ms. Amisha Lolusare for the Petitioner. Mr. Karan S. Thorat, ‘B’ Panel Counsel for the Respondent Nos.1, 3 and 4-State. CORAM: BHARATI DANGRE & ASHISH S. CHAVAN, JJ. DATE : 31st AUGUST 2026 P.C. : 1. The petitioner raises a challenge to the impugned communication dated 20th July 2026 issued by the District Special Auditor, Class-1, Co-operative Societies, Thane, i.e. respondent No.2, addressed to the Senior Police Inspector, Kasarvadavali Police Station, pursuant to the audit enquiry conducted by Mr. Suhas Kamble, Auditor, Class-1, and the report submitted by him on 10th April 2023. The said communication records that there was financial defalcation N. S. Chitnis 1/6 NISHA SANDEEP CHITNIS Digitally signed by NISHA SANDEEP CHITNIS Date: 2026.09.05 13:59:48 +0530 6-wp.11139.2026.doc during the tenure of the authorised officer and that, therefore, the Deputy Registrar, Co-operative Societies, Thane City, by his communication dated 29th April 2026, directed respondent No.2 to take necessary steps in that regard. Pursuant thereto, respondent No.2 addressed the communication dated 20th July 2026 to the Senior Police Inspector, Kasarvadavali Police Station, requesting that appropriate action be taken, as the conduct of the petitioner, who was named in the said report, had resulted in financial defalcation and she is an authorised officer, therefore a Government servant. 2. The learned counsel for the petitioner submits that the impugned communication is beyond the competence of the respondent No.2 and this submission, we must out rightly reject. On reading of the communicated dated 20th July 2026, it is seen that a Special Audit was conducted for Cielo Co-operative Housing Society Ltd., Thane, under the directions of the Deputy Registrar, Co-operative Societies, under Section 81 of the Maharashtra Co-operative Societies Act, 1960 (‘MCS Act’). The Auditor, Class-1, submitted his report under Section N. S. Chitnis 2/6 6-wp.11139.2026.doc 81(3)(b) on 10th April 2023, and it mentioned that the misappropriation had taken place during the tenure of the authorised officer and directions were issued that criminal proceedings be initiated in this regard. The Deputy Director, Co-operative Societies, by his communication of 29th April 2026, directed the District Special Auditor, Class-1, Co-operative Societies, Thane, to take appropriate steps and by exercising the power conferred upon him and in the wake of the power conferred to lodge a report under Section 81(5B), a complaint has been lodged which is yet to be taken cognizance of by the concerned Police Station. A perusal of Chapter VIII of the MCS Act, pertain to Audit, Inquiry, Inspection and Supervision. It is indicated that the Society shall cause to be audited its accounts as directed under Section 81(1)(a) by an auditor from the panel prepared by the Registrar and approved by the State Government or an authority authorised by it in this behalf, possessing required qualifications and experience and such report of the auditor shall be furnished to the Society, the audit being directed to be carried out as per the auditing standards notified by the State Government from time N. S. Chitnis 3/6 6-wp.11139.2026.doc to time. For the purpose of conducting such audit, it is imperative for the Society and its members to permit the auditor to have access to all the books, accounts, documents, papers, securities, cash and other properties belonging to, or in the custody of, the Society, and any person being summoned on the ground that he/she is in possession or responsible for the custody of any such books, it will be imperative to follow the said directions. If the Registrar has reason to believe that there exists an element of fraud, mis-application of funds, manipulation of the accounts and the accounts of the Society are likely to be tampered with, then it is competent to depute a Flying Squad to a Society or Societies for examination of such documents as are necessary and the report of the Flying Squad shall be treated as sufficient evidence for further action, if any. The auditor upon carrying the audit shall submit a report to the Society and to the Registrar, in terms of Section 81 (5B) on the accounts examined by him and act on the basis of the balance sheet and profit and loss account. However, if the auditor comes to a N. S. Chitnis 4/6 6-wp.11139.2026.doc conclusion in his audit report that any person is guilty of any offence relating to the accounts or any other offences, he shall file a specific report to the Registrar and the auditor concerned, after obtaining written permission of the Registrar, file a First Information Report of the offence. The said proviso also mandate that the auditor who fails to file the First Information Report, shall be liable for disqualification and his name shall be liable to be removed from the panel of auditors and he shall also be liable for any other action as the Registrar may think fit. 3. In light of the aforesaid specific provision as contemplated under Section 81, we find that the impugned communication dated 20th July 2026 addressed by the District Special Auditor, Class-1, Co- operative Societies, Thane, to the Senior Police Inspector, Kasarvadavali Police Station, is in tune with the said provision. Though the learned counsel for the petitioner has vehemently asserted before us, certain points indicating that the petitioner was not the authorised officer during the relevant period and the accusation as regards fraud N. S. Chitnis 5/6 6-wp.11139.2026.doc against her is not established, in our view, this is not the stage, when we would indulge into the same, as we find that the invocation of the power in issuing the impugned communication, is based upon the Report under Section 81. For this reason, we dismiss the writ petition. Though the learned counsel for the petitioner makes a categorical statement that the petitioner has paid the entire disputed amount to the Society, which is alleged to be defaulted, it would be for the petitioner to demonstrate the same, as and when the FIR is registered. Needless to state, we leave it open to the petitioner to avail of such remedies as may be available in law, in the event an FIR is registered. Writ Petition stands disposed of accordingly. ASHISH S. CHAVAN, J. BHARATI DANGRE, J. N. S. Chitnis 6/6