Registrar’s approval mandatory for prosecution: LHC

LAHORE  –  The Lahore High Court on Tuesday ruled that the Anti-Corruption Establishment (ACE) Punjab cannot initiate inquiries or prosecu­tion in disputes involv­ing private cooperative housing societies with­out following the pro­cedure prescribed by law, observing that the authority to recom­mend prosecution rests with the Registrar of Cooperative Societ­ies. Justice Jawad Zafar heard a petition filed by Sheikh Sadaqat Ali, general secretary of a private cooperative housing society, chal­lenging an inquiry ini­tiated by the ACE La­hore against the society on the complaint of a complainant described by the petitioner as a habitual complainant. Appearing on behalf of the petitioner, advocate Mian Dawood argued that the ACE had no ju­risdiction to intervene in disputes involving cooperative housing societies, as such mat­ters fell within the do­main of the Cooperative Department. He al­leged that over the past three years, the ACE had become a tool for the misuse of author­ity, with inquiries being initiated on the basis of baseless complaints to harass and blackmail citizens. He described the inquiry against the society as a clear exam­ple of the department’s alleged abuse of power. The counsel submitted that Section 63 of the Cooperative Societies Act required the Regis­trar’s approval before prosecution could be initiated. He also re­ferred to the Lahore High Court’s judgment in the Khalid Wasim case, in which society members were held not to fall within the defini­tion of public servants because they did not receive salaries from the public exchequer.

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He requested the court to declare the on­going inquiry against the society unlawful and beyond the ACE’s jurisdiction.

Assistant Advocate General Falak Sher Gill acknowledged before the court that pros­ecution under Section 63 could only be initi­ated following approval from the Registrar of Cooperative Societ­ies. He also conceded that the high court had ruled in the Khalid Wa­sim case that coopera­tive society members did not fall within the definition of public ser­vants. During the hear­ing, Justice Jawad Zafar questioned ACE Assis­tant Director Zaigham over the department’s authority to proceed directly against the so­ciety. “The law clearly states that the Anti-Corruption Establish­ment does not have the authority to initiate a direct inquiry. Why, then, are people being harassed?” the judge observed. The ACE offi­cial argued that Section 65 of the Cooperative Societies Act brought society members with­in the definition of pub­lic servants. However, the court observed that the high court had al­ready interpreted the provision and excluded cooperative society members from that def­inition, ruling against the ACE’s intervention in such disputes.

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