An Appeal to Lt Governor of Delhi to Exercise Regulatory Powers ∗



by 3 Lt Col CPC Nath(Retd), C 679 Sarita Vihar, New Delhi 110076† March 15, 2013


An electronic copy available at . He is an independent researcher in Information Security, Privacy, Philosophy of Law and Justice.


. . . . . . . . . . . . . . .Contents I Dimension of Veteran Stakes 3 4 5 6 7 II Facts A Rule of Law . 9 B Criminal Breach of Trust . . . . . . . . . E Violation of Fundamental Rights & Constitutional Rights F Injustice & Violation of Statutes . . . . . . . . . . . B Statutes violations & Potential for Big time Scandal . . . . . . . . . . . . . . . H Coercion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2 . . . . . . . . . 1 2 3 4 5 6 III Fiduciary Principles 8 A Unbending and Inveterate Standard . . V Prayer 11 11 12 12 14 14 15 16 16 17 7 8 9 10 11 12 13 14 15 16 17 18 . . . . . . . . . C Not Responsive to appeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B Grounds for Suspicion . C Violation of Democracy by an Oligarchy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G Illegal and Unlawful Rules . . 10 IV Allegations A Criminal Breach of Trust . . . . . . . D Due Process violations: Rules of the Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 6 7 8 9 10 11 12 13 14 15 16 17 3 .000 Crores member contribution are at stake and are being managed autocratically by a single person with zero transparency as if it is his “sole proprietorship” as opposed to being governed democratically by the stake holder veteran members mostly in their 60s. electric light the most efficient policeman. Other People’s Money and How Bankers Use It (1914). 70s and 80s. And this is happening right under the nose of the Delhi Government.0000 homes and 10.Justice Louis Brandeis. A SOCIETY REGISTERED IN DELHI UNDER THE REGISTRATION OF SOCIETIES ACT 1860 1 2 3 I DIMENSION OF VETERAN STAKES 4 AWHO ( Army Welfare Housing Organization). Sunlight is said to be the best of disinfectants. “Publicity is justly commended as a remedy for social and industrial diseases. an amount of Rs 15.000 homes are under construction.AN APPEAL TO LT GOVERNOR OF DELHI TO EXERCISE REGULATORY POWERS IN THE OFFICE OF THE LT GOVERNOR OF DELHI IN THE MATTER OF COMPLIANCE WITH LAWS OF ARMY WELFARE SOCIETY ORGANIZATION. a society registered in Delhi under Registration of Societies Act 1860 has constructed 20.”. With individual veteran member contributions going on an average to Rs half a crore.

The Army emblem carried every where on the AWHO site gives feeling that it is closely connected with the Army. 4.II FACTS 1 1. Most of the veterans are made to believe this purely on the basis of trust that the measure is a welfare measure closely supervised by the Army and his money is not in danger of being exploited. 70s and 80s and have invested all of their savings and savings of his spouse. AWHO ( Army Welfare Housing Organization) is a Society registered in 1978 under Societies Registration Act 1860 for the welfare of Army personnel both serving and retired by providing housing at No Profit No Loss. 2. He soon learns that the staff and Members of the Board ( MoB) of AWHO consisting of serving senior Army officers under the strict disciplinary constrains of Military law and discipline have undivided loy4 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 . No one ever told him that though it is a Society. 3. he is not a part of the Society where transactions will be conducted with total transparency as required under the statute. 5. and even grown up children and have borrowed very heavily from banking loan sources discover that they are under coercion to continue because the alternative of getting out is at a terrible financial ruin and so continue till the end of the project. The truth as he discovers soon is: Give us your money and we will give you a house eventually but there will be total lack of transparency and Society will function neither as a Government Department nor a true Society where members will participate in its governance. 7. Veteran investors whose average age profile is in their 60s. Society is a legal fiction for a couple of public servants of Army Hq to get into lucrative Real Estate business for a captive veteran population and the Society has no real interests of the veteran in mind ever but is interested only in his money. 6.

Not only that there is no Right to Information and the Society though controlled fully by the “public servants” deny all Right to information available to the citizens. specifications and variations from original specifications etc. (even a Hotel customer gets itemized list for various charges in his Hotel bill). AWHO is engaged in construction of housing in the booming real estate market. Conveniently. Citizens Right to Information is because of his stakes in governance as a tax payer and member of the public. i. the registration under Cooperative Societies Act with strict protection of interests of the stake-holder is guarded by detailed statutes provisions and close regulation by regulating agencies because of the financial interests of the stake holders involved are safely avoided by AWHO by the lax Registration of Societies Act which 5 22 23 24 25 26 27 28 29 30 . One senor veteran of the stature of a retired Major General had to put up an RTI request to Govt sources like HUDA to get the correct spec of his house allotted by AWHO!( see http://pragmatic.alty to the Adjutant General as against their fiduciary responsibilities mandate that they ought to have “undivided loyalty” to the actual beneficiaries. Though real estate business has never been envisaged originally under Registration of Societies Act 1860. Any amount of communications go unattended. and unanswered and soon he realizes that he was talking to a wall like the devoted old Jewish Rabbi talking to the western wall all his life time with no specific effect on the wall or his prayers! 16 17 18 19 20 A RULE OF LAW 21 Ever since its registration AWHO seems to be either breaking laws or stretching the statutes with evil intent and lack of faith to justify violations of law. the veteran is an investor to the tune of Rs Half a crore these days and yet he has no right to information of basic things like break down of cost of Houses. 15 [accessed 10 March 2013]) 9. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 nationalinterest.e the veterans. 8.

construction cost. The Right to Information in Government is based on the stake of the citizen that he pays taxes to the 6 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 . 1. 1 B GROUNDS FOR SUSPICION 2 Extreme Secrecy and total Lack of transparency in every thing about the functioning of the society as if they are “national secrets” to be guarded with utmost secrecy or else it will endanger the territorial integrity of the nation and that includes even publicly available records below thus invoking the suspicion of possible opportunity for corruption. 6. development cost. Names of the BoM 4. management costs etc as if these are also national secrets to be guarded from the enemies of the nation! Disclosure required to ascertain the validity of the claim that the Society functions as non-profit as claimed by the BoM. Original Rules of the Society 3. from the voting on passing the rules ii. Financial statements including Assets and liabilities and the audited statement of accounts of the Society. 5. Original Memorandum of Association of the Society 2. even from the fundamental membership of the society (b) Decision to have all BoM to be from ex-officio members only thus excluding the contributing members from all opportunity of guarding their interests from usurpation by the non-contributing members. Break down of costs of houses (you get a break down of prices at the end of a dinner in any restaurant!) into land cost. Decisions of BoM including (a) Decision to disenfranchise the contributing members of the society i.actually is meant of literary societies etc.

See document at http://goo. Right to petition is a fundamental right of the people and it does come with a concomitant right of people in power NOT to ignore such petition! As stated by US Supreme Court Justice Louis Brandeis. the likelihood of corruption is at its highest and especially so when the operating assets run to many thousands of crores. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Registered rules of a society pre-supposes Membership in Society “Significantly the registered rules of a society bind both the society and all of its members. when dealings are opaque.Members can be either individuals.The binding nature of these rules is stated to be as though each members had signed those rules in person. Experience teaches us to be most on our guard to protect liberty when the government’s purposes are beneficent. Even the queries on the breakdown of the costs charged for houses when it is 300 to 400% higher than construction/escalation costs elicits no response from the Society dedicated to the “welfare” of the veteran! 1 2 3 4 5 6 7 C NOT RESPONSIVE TO APPEALS 8 Every appeal for correction was totally ignored with no application of mind not to talk of any response by total stone wall of silence as if nothing had happened and only remedy constantly reminded on conversation is to approach the courts. and in this case a Society controlled by a bunch of “public servants” in office at the exclusion of any democracy by the welfare recipients mandated by the statute is clearly violating the well settled rights of the ordinary citizen and mostly senior veteran in their 60s. Shouldn’t the AWHO allottee who stakes his life’s savings and must have right to information from his fiduciary? Further. Amendments to the rules are only binding on an individual members if that members consent in writing had been obtained prior to the 7 23 24 25 26 27 28 29 30 .gl/BwFNY. giving a contractual flavour to their relationship. other societies or companies. 70s and 80s with all the rights which a vibrant democracy provides! To think of denying these as a “welfare measure” is only an irony in the AWHO society.Government.

is bound to act in good faith and with due regard for the interests of the one reposing the confidence. 8 23 24 25 26 27 28 29 . Friendly Societies Act of UK & Registration of Societies Act 1860 1 2 3 4 5 6 7 In general terms a friendly society the relationship of the member of an unincorporated friendly society and the society itself is governed by the law of contract. the rights of the members are entirely in the personal nexus established by the contract (in the form of the societys rules) between the member and the society and the (statutory) debt generated by that relationship. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 III FIDUCIARY PRINCIPLES 22 1. AWHO violates Democratic control and instead incorporates control by exofficio the military not responsive to the Members with total lack of loyaties to the Society Members but to outside powers! This violates all fiduciary principles.change.” AWHO violates Rule of Law and and instead incorporates Rule of Men. in equity and good conscience. Since a fiduciary has a duty to disclose all relevant facts relating to matters within the scope of the fiduciary relationship.It should be remembered though that FSA 1974 requires an express trust be created. Each society is required to have at least one trustee and each branch is also required to have at least one trustee. a failure to disclose may toll the statute of limitations. The right of the member during the life of the society will therefore be as a beneficiary under a trust with vested proprietary rights.” 2. Therefore. The society itself does not have legal personality and therefore it will be the trustees who will enter into contractual relations with the members ex officio. A fiduciary relationship exists “where there has been a special confidence reposed in one who.

5. Many forms of conduct permissible in a workaday world for those acting at arm’s length are forbidden to those bound by fiduciary ties. 7. The trustee must display throughout the administration of the trust complete loyalty to the interests of the beneficiary. 8.3. nor in their own business. 4. He bears the burden of proof on these issues. A trustee is held to something stricter than the morals of the market place. 10. by using the money in any kind of trade or speculation. Fiduciary is at risk where the evidence on the questions is inadequate to reach a conclusion. and must exclude all selfish interest: One of the most fundamental duties of and over all consideration of the interests of third persons. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 A UNBENDING AND INVETERATE STANDARD Many forms of conduct permissible in a workaday world for those 9 27 28 . The duty requires the fiduciary “to subordinate his own interests to those of the beneficiary”. Trustees cannot make a profit from the trust funds committed to them. 11. 6. 9. The duty of loyalty requires the fiduciary to act solely for the benefit of the person to whom the duty is owed with respect to all matters within the scope of the fiduciary relationship. The trustees must account for every dollar received from the use of the trust-money and they will beabsolutely responsible for it if it is lost in any such transactions. The burden of proving that he or she disclosed all material facts and that the transaction was fair lies with fiduciary. The duty of fidelity required of a trustee forbids the trustee from placing itself in a situation where there is or could be a conflict between its self interest and its duty to the beneficiaries.

. 545546 (1928) The quotation above from Justice Benjamin Cardozo of the New York Court of Appeals has set the standard for fiduciary conduct since it was written many years ago. is then the standard of behavior. As to this there has developed a tradition that is unbending and inveterate. there surely is conflicts of interest. Conflict of interest rules are exceptionally precise! 2. Justice Benjamin Cardozo of the New York Court of Appeals in Meinhard v. In performing its duties. any fiduciary should be aware that the standards to which it is held should include not only looking backward at past and recent court decisions. . Uncompromising rigidity has been the attitude of courts of equity when petitioned to undermine the rule of undivided loyalty . are forbidden to those bound by fiduciary ties.acting at arms length. ( This is extremely important as it was revealed in the meeting that the officials work with loyalty and compliance with Army Hq as opposed to its own beneficiaries. It will not consciously be lowered by any judgment of this court. Acting on behalf of a party whose interests conflict with those of the person to whom the fiduciary duties are owed. Where the fiduciary enters into a transaction with a party to whom 10 23 24 25 26 27 28 29 30 .E. Salmon. Only thus has the level of conduct for fiduciaries been kept at a level higher than that troddened by the crowd. but also looking forward to issues yet to be litigated 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 B CRIMINAL BREACH OF TRUST 22 Any of the following constitute a Crminial Breach of Trust: 1. 164 N. A trustee is held to something stricter than the morals of the market place. it is an example of the high standards to which fiduciaries are held. Although the quotation arose out of a question of trustee loyalty and is cited to hold fiduciaries to a standard requiring that the beneficiarys interest be placed first. Not honesty alone. but the punctilio of an honor the most sensitive. .

Represent a party whose interests are adverse to the interests of the plan or the interests of its participants or beneficiaries. he or she must disclose all relevant facts to the party and. may enter into a deal only on fair terms. 4. Deal with the assets of the plan in his own interest or for his own account. Instead of fulfilling the trust reposed on them. the burden is on the accountant-fiduciary to prove both the fairness of the transaction and the disclosure of all material facts. A fiduciary has a duty to disclose all relevant facts as to matters within the scope of the fiduciary relationship and any failure in this is a Criminal Breach of Trust. In addition. Contributing members are the ones who trust their money with the Society for their houses and these days this amount goes up to Rs half a crores per individual. (BoM 11 21 22 23 24 25 26 27 . A fiduciary is under a duty to keep accurate books and records regarding what constitutes the trust receipts and disbursements to and from the trust estate. in his individual or in any other capacity act in any transaction involving the plan on behalf of a party. have deprived the contributing members of eligibility to election to BoM thus depriving them of representation in the ruling BoM. Chairman and BoM seem to: 1. records of all allocations of receipts and disbursements between the principal account and the income account. 3. 5. all receipts and disbursements to and from the trust estate and.a fiduciary duty is owed. even then. 6. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 IV ALLEGATIONS 18 The following infractions of statutes are alleged against the said Society: 19 A CRIMINAL BREACH OF TRUST 20 Members of the Board of Management owe fiduciary responsibilities to the contributing members of the society. where applicable.

thinks that they can impose their will even though the members have no representation in the BoM.) 2. The Chairman controls the BoM and COAS controls the Chairman using the strength and power of the military law and power over subordinates is absolute unlike in a Society where every one is equal. Queen of England or the President of India have no rule making authority over their people except through the elected representatives of the people. This is almost like a dictator like Saddam. 3. a special second class citizenship with no eligibility to vote even in the general body. What must A (or B) do.000 houses and are constructing 10. Currently. under threat of societal penalty assessed for the benefit of the others? 12 27 28 29 . Even the President of USA. the Society has become almost a single proprietorship controlling a very large business. Mubarak or 1 2 3 4 5 6 7 8 9 10 Musharaff declaring that the citizens are only subjects and not citizens and the members of their cabinet are the only citizens! 11 12 B STATUTES VIOLATIONS & POTENTIAL FOR BIG TIME SCANDAL 13 14 Founding members who formed the BoM have ruled that the members of the society are not eligible for election to BoM. 15 16 17 18 19 20 21 22 23 24 25 26 C VIOLATION OF DEMOCRACY BY AN OLIGARCHY 1. That is what we call sovereignty of the people or democracy in the 21st century. Disenfranchised them from voting as members of the General Body. AWHO has constructed 20. They have been declared as non-members as second grade citizen and new category by the name “allottees” have been created for this very purpose. General Body and declared them to be just “allottees”.000 houses and each house roughly costing Rs 50 Lakhs and that means huge business ( Rs 15.000 Crores) stretching all parts of India but being controlled as if it is a “sole proprietorship” but actually belonging to all the members of the society.

6. then A has a disability and B has an immunity. the ex-officio Chairman of AWHO. every change of Rules or MoA requires approval of the General Body as per the statutes. 5. Similarly. The very rise of co-operative movement demonstrates this and all the principles of co-operatives have been violated in AWHO. 7. If we determine that A cannot by his own voluntary act change the legal relations of B. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 13 . If we determine that A must conduct himself in a certain manner. JCO or OR and the Founders have a disability to change this and Members have immunity against any change in the rights of the Members. To believe that the well estabished principle of self-interest in property can be sacrificed in the fond hope that “benvolent welfare feeling of the powerful and mighty” can justifiably replace “self-interest” of those who invest their hard earned money is only possible in a fool’s paradise and one has to be a simple and nieve fool to beleve in it is convincingly demonstrated historically. then Founding Members has a duty to the Members of AWHO. 3. As no change to MoA or the Rules of the Society is possible with out the General Body of Members approving the same.2. Membership as per the original Rules is defined and it is any serving or retired officers. Founding Members have a disability to change this and Members have immunity against any change in the rights of the Members. and B has a right against A. Democratic control by contributing members have been banished by Adjutant General. then the founding members has a duty to the Members of the Society and Members of the Society right against Founding Members. on his own volition. if Founding Members has a duty to get the change of MoA and Rules passed by the Members. he has a duty to B. AWHO BoM has a duty to call elections for the elected BoM under the original MoA. 4.

This generation of rights was derived from the American and French revolutions that both struggled to gain freedom from arbitrary rule. articulated more recently in the Civil and Political Rights of the International Bill of Rights (1966). It is sad indeed that we need to argue for the first generation of rights “Rule of Law rathe than Rule of Man” in AWHO in a democratic country not to talk of the second generation rights “Democratic Governance”. these rights have at least formally established an impartial and fair enforcement of the procedural and substantive compo14 18 19 20 21 22 23 24 25 26 27 28 29 . Collectively. these rights. In the domains of crime and crime control. Rules ever since the establishment of society. 11 12 13 14 15 16 17 Rule of Law rather than Rule of Man The first generation of rights represented the struggle for equal justice or the struggle for negative rights. So every amendment to the rule are illegal because due process was not followed. 3 4 5 6 7 8 E VIOLATION OF FUNDAMENTAL RIGHTS & CONSTITUTIONAL RIGHTS 9 10 Violation of fundamental rights and equality before law equal protection of laws guaranteed by the constitution. The protection of the constitution and the statutes are denied to the contributing members by the self-appointed ex-officio members who have usurped the BoM.D DUE PROCESS VIOLATIONS: RULES OF THE SOCIETY 1 2 Rules of the Society as submitted to the Registrar of Society for the first time while registering are the only ones which are still valid as the due process in change of rules have not been followed in making any of the changes as per the originally approved MoA. These called for a restraint from the uninhibited state or monarchial power over the individual. have shaped governmental control by rule of law rather than rule of man.

vote on these changes and approve these changes. In the domains of crime and crime prevention. such exclusion from all op15 18 19 20 21 22 23 24 25 26 27 28 29 30 . and offender-victim reconciliation. execute and enforce these changes and punish those who violate the changes thus usurping the legislative. Social. The non-contributing members have usurped all BoM membership. 1 Democratic Governance The second generation of rights represented the struggle for restorative justice or the struggle for positive rights. The second is the contributing members who have contribution to construction of Houses runs to half a crore these days.nents of the criminal and civil laws. all General body membership and right to initiate changes of rules and bye-laws. These rights were also collectively articulated in 1966 in the Economic. non-contributing. judicial powers all by themselves violating the fundamental precepts of the democratic functioning of the Society registered under the statutes and worse still to the total exclusion of the contributing members from all of the above. who are selected to be members ex-officio holding certain appointments in the Army Headquarters. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 F INJUSTICE & VIOLATION OF STATUTES 17 There are two kinds of members. one. penitence and redemption. and Cultural Rights of the International Bill of Rights. These called for affirmative actions by and/or on behalf of the state for pursuing the common welfare. these rights have shaped the sociopolitical obligations or minimal duties of the state to facilitate the self-actualization of individual human being (Barak 1980). executive. these have included an emphasis on community social welfare. Considering that the the fundamental purpose of the Society is for the welfare of the members of army both serving and retired. Rooted in the struggles to democratize governments and to make them responsible to the needs of people living in post laissez-faire monopoly societies as a whole.

1 2 3 4 G ILLEGAL AND UNLAWFUL RULES 5 BoM has passed rules with out “due process of law”in that they are not approved by the General Body (because General Body is declared to be same as BoM ) but also in violation of the fundamental and constitutional rights of citizen. statutes that protect the property rights of the citizen and these unconstitutional and illegal rules are not enforceable under the laws of the land. one is reminded of the much quoted saying the world famous jurist : Experience teaches us to be most on our guard to protect liberty when the government’s purposes are beneficent.–Justice Louis D Brandeis 14 15 16 17 18 19 20 21 22 23 24 25 26 27 16 . The Chairman and BoM are terrified of democratic deliberation and discussion and democracy of the rules was replaced by oligarchy of those who usurped power. When AWHO claims to be guarding the welfare of the veteran and behave in this fashion.portunities to democratic control of the governance and direction of society is blatant and gross violation of statutes and can not be justified for any public purpose other than complete control of the Society at the behest of the COAS. covenants 13 and restrictions in the sales deeds and certificates and undertaking forced on the allottees under the coercive threats that they will not get their houses unless they comply with these surreptitious incorporation and thus restricting their liberty to act under free will as citizens of a free democracy under threat of coercion because the alternatives to withdraw from the project thus incurring extreme economic losses and missed opportunities. 6 7 8 9 10 11 H COERCION 12 These rules are enforced surreptitiously incorporating it in contracts.

literary or scientific activity. 6. Redraft and pass Registration of Societies Act 1860 to plug loopholes in compliance with exemplary punishments for transgression of Rule of Laws. 3. the Society registered under Societies Registration Act 1860 under Delhi Government 1. Order AWHO to re-register under Co-operative Housing Societies Act and comply with the stringent regulatory requirements under the vigilant Director of Co-operatives to safeguard the interests of veteran stakeholders as business of real estate builder as a “sole propreitorship” is not valid activity under Registration of Societies Act as it does not come under charitable. Enforce strict compliance to democratic rights guaranteed under the statutes. Order “full disclosure” of all charges under different accounts and assets and liabilities of the society as required under its ‘fiduciary duties” and compliance with the statues. ************************** 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 17 . Declare all rules passed with out “due process” and violative of constitution and statutes null and void. 4.V PRAYER 1 In view of all the foregoing charges against AWHO. 5. Order an inquiry and a strict compliance audit against AWHO. 2.

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