The High Court for the State of Telangana has granted interim relief in a significant case involving the administration of District Cooperative Central Banks (DCCBs) in Telangana, directing that a state government order appointing District Collectors and District Magistrates as official Persons-in-Charge committees for DCCBs shall not be given effect to till the next hearing.
Justice G.M. Mohiuddin passed the interim direction while hearing a batch of writ petitions filed by existing PIC committee members of three DCCBs, Mahabubnagar, Medak and Nalgonda.
The petitioners challenged G.O.Rt.No.598 issued by the Agriculture & Cooperation Department on December 19, 2025, through which the Telangana government had appointed District Collectors and District Magistrates as official Persons-in-Charge committees for nine DCCBs in the state.
The petitions were filed by members of the existing committees who had earlier been appointed under G.O.Rt.No.386 dated August 14, 2025. The petitioners included K. Manjula from Mahabubnagar DCCB, along with members from Medak and Nalgonda DCCBs including Banswada Govardhan Reddy, Pasham Sampath Reddy and others.
During the hearing, counsel for the petitioners argued that the government had wrongly invoked Section 123 of the Telangana Cooperative Societies Act, 1964 to bypass statutory provisions governing cooperative institutions.
According to the petitioners, Section 123 only allows exemption from provisions of the Act for recorded reasons, whereas the impugned government order allegedly did not provide any valid justification for superseding the existing committees.
The petitioners further contended that the state government violated Section 32(7)(a), Section 34 and Rules 10 and 30 of the Telangana Cooperative Societies Act by replacing the existing committees without issuing notice or giving an opportunity for representation.
They also informed the Court that the Telangana government had earlier withdrawn similar supersession actions relating to Primary Agricultural Cooperative Societies (PACS) after judicial intervention.
After hearing the arguments, the High Court directed that G.O.Rt.No.598 “shall not be given effect to till the next date of hearing,” effectively putting the government’s move on hold for the time being. The matter has been posted to June 12, 2026, while the state government has been directed to file its counter affidavit.
The interim order is being seen as a major development for Telangana’s cooperative banking sector because the challenged government order covered nine DCCBs across the state.
Although the present petitions relate to only three DCCBs, Mahabubnagar District Cooperative Central Bank, Medak District Cooperative Central Bank and Nalgonda District Cooperative Central Bank, the Court’s observations could have wider implications for all affected cooperative banks and the ongoing restructuring process involving PACS and DCCBs in Telangana.
