Gujarat High Court Steps In as Cooperative Row Turns Political

Ahmedabad | Gujarat — In a major development that has intensified the political battle surrounding the upcoming Sumul Dairy elections, the Gujarat High Court has stayed the District Registrar’s move to appoint an administrator in the Sondalakhara Division Milk and Vegetable Sales Cooperative Society of Olpad. The court has ordered status quo until further hearing, effectively halting action that had threatened to dissolve the managing committee for six years.

The decision comes amid an escalating internal tussle between two factions of the Bharatiya Janata Party, with the cooperative society dispute emerging as a flashpoint ahead of the crucial Sumul Dairy leadership contest.

The controversy began when Surat District Registrar of Cooperative Societies Haresh Kachhad invoked Section 81 of the Gujarat Cooperative Societies Act, citing alleged financial and operational irregularities amounting to ₹6.34 lakh. The notice proposed dismissing the managing committee and appointing an administrator, triggering outrage among members who described the action as “disproportionate and politically motivated.”

According to the allegations, the complaints included issues related to buffalo loans, toilet construction funds, unpaid dues of ₹2.62 lakh to Olpad Kantha Sugar, and alleged short milk supply by committee members. However, the society—long considered one of the most viable in the region—has consistently held an Audit ‘A’ certificate, strengthening its claim that the action was unwarranted.

Challenging the Registrar’s decision, society president Vasant Ranchhodbhai Patel and other committee members approached the High Court. During hearings, their counsel argued that the Registrar issued the notice without considering relevant material, violating established legal principles laid down in previous landmark rulings.

Justice Hemant M. Prachhak, in an order dated March 24, observed that the Registrar’s move appeared to bypass settled legal procedures. In a subsequent order dated May 4, the court directed the Registrar to maintain status quo until further orders and allowed former minister Mukesh Patel to be added as a party respondent, directing him to file a reply by June 12.

Petitioners alleged before the court that the Registrar initiated proceedings under Section 81 following instructions from the former minister—an allegation that has added a strong political dimension to the dispute.

“This case raises serious concerns about the misuse of administrative powers in cooperative institutions,” a legal expert said, noting that the High Court’s intervention signals judicial caution in politically sensitive cooperative matters.

The ruling has provided temporary relief to the society’s managing committee while setting the stage for a high-stakes legal and political showdown. With the Sumul elections approaching, observers believe the outcome of the case could significantly influence the cooperative power dynamics in South Gujarat.