- (1.) Leave granted.
(2.) N.G.E.F. Employees House Building Cooperative Society Limited (for short, "the society") is a society incorporated and registered under the Karnataka Cooperative Societies Act, 1959 (for short, "the Act"). Appellant herein was a Director of the society. He filed a complaint petition alleging inter alia that the respondents herein who were the office-bearers of the society, earned a huge amount for themselves by alloting a site bearing No. 509 measuring 30 x 40 for a sum of Rs. 2,40,000/- to one Gopal, a name lender who in turn, sold the said site for a sum of Rs. 28,00,000/- to one Hanumanthegowda by a deed of sale dated 3.7.2006. However, in the sale deed, the consideration amount was shown as Rs. 10,20,000/-. It was contended that the respondents in connivance with the said Gopal made illegal gain as the market value of the said property was about Rs. 28 lakhs.
(3.) The following facts are admitted. The land in question was acquired in the year 1985-86. The society formed a layout and sites were allotted to its members. However, few sites remained vacant. One of the persons whose lands were acquired for the society, namely, Munivenkatappa (father of Gopal) allegedly had requested the society to release one acre of land for his personal use, pursuant whereto, the society resolved to release 337" x 132" of land in favour of his family. Another application was filed by M. Gopal, son of said Munivenkatappa, in terms whereof request was again made to the said society for allotment of the land. The said request was received on 27.3.2006 and allotment of a site bearing No. 509 measuring 30 x 40 for a sum of Rs. 2,40,000/- was made and a deed of sale was executed in his favour on 7.4.2006. A possession certificate was also issued. Within a period of three months, said Gopal sold the said property in favour of Hanumanthegowda for a sum of Rs. 28,00,000/-. However, in the sale deed, the consideration amount was shown as Rs. 10,20,000/-.;