Supreme Court: Jharkhand Memo on Cooperative Property Transfers Overturned

Parties: Adarsh Sahkari Grih Nirman Swawlambi Society Ltd vs. The State of Jharkhand
Advocates: __
Bench: Hon'ble Mr. Justice Pamidighantam Sri Narasimha, Hon'ble Mr. Justice Atul S. Chandurkar
Judgment By: Hon'ble Mr. Justice Pamidighantam Sri Narasimha
Diary Number: 7678/2024

Here's a quick rundown: The Supreme Court of India just rejected a memo that was causing a lot of trouble for cooperative societies in Jharkhand. The court said the memo was unnecessary and against the rules. Let's break it down!

The Memo That Started It All

Back in 2009, the top official of the Registration Department in Jharkhand sent out a memo. This memo required cooperative societies to get extra approval from another official before they could transfer property without paying a special tax. The idea was to stop fake societies from misusing the tax break.

Why the Memo Was a Problem

The Adarsh Sahkari Grih Nirman Swawlambi Society Ltd, a cooperative society, wasn't happy. They argued that:

• The memo added an unnecessary step that wasn't in the Stamp Act.
• It went against the independence given to cooperative societies by the Jharkhand Self-Supporting Cooperative Societies Act, 1996.
• The Assistant Registrar didn't have the power to approve or deny these transfers.
• The memo was issued without giving societies a chance to speak up, which was unfair.

What the High Court Said

At first, both the Single and Division Benches of the High Court thought the memo was okay. They believed it was needed to make sure only real societies got the tax break.

The Supreme Court Steps In

On December 5, 2025, Justice Pamidighantam Sri Narasimha and Justice Atul S. Chandurkar of the Supreme Court took a closer look. They found that:

• The requirement for an Assistant Registrar's recommendation was unnecessary and against the rules.
• A cooperative society's registration certificate should be enough proof of its legitimacy.
• The memo was adding unnecessary complexity without any real benefit.

The Final Verdict

The Supreme Court dismissed the memo, calling it unnecessary and disruptive. They emphasized that the registration certificate is enough proof of a society's legitimacy, making the extra recommendation pointless.

What This Means

This decision is a win for cooperative societies in Jharkhand, ensuring smoother property transfers without unnecessary bureaucratic hurdles. It's a reminder of the importance of simplicity and good governance in administrative processes.