Bombay High Court Upholds Disqualification of Sarpanch for Interest in Contracts Under Section 14(1)(g) of Maharashtra Village Panchayats Act, 1958. Payments to Husband's Relatives Constitute Disqualification.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Prosecution
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Case Note & Summary

The petitioner, Archana Neharkar, was the Sarpanch of Kutewadi Grampanchayat in Beed district. She was disqualified by the Collector, Beed, on 5 January 2022 under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958, on the ground that she had an interest in contracts awarded by the grampanchayat. The Collector found that various amounts meant to be paid to contractors were deposited in the bank accounts of the petitioner's husband, father-in-law, and brother-in-law. The petitioner appealed to the Additional Divisional Commissioner, Aurangabad, who dismissed the appeal on 7 April 2022, confirming the disqualification. The petitioner then filed a writ petition in the Bombay High Court challenging both orders. The court noted that the petitioner had previously been disqualified under Section 39(1) of the same Act on 9 December 2021, but that disqualification was set aside by the High Court on 26 September 2022 in Writ Petition No.7812 of 2022 due to lack of independent enquiry by the Chief Executive Officer. However, the present disqualification under Section 14(1)(g) was based on a separate proceeding where the Collector had given the petitioner an opportunity of hearing. The court found that the payments to the petitioner's close relatives clearly indicated her interest in the contracts, and therefore the disqualification was justified. The writ petition was dismissed, upholding the orders of the Collector and the Additional Commissioner.

Headnote

A) Local Self-Government - Disqualification of Sarpanch - Interest in Contracts - Section 14(1)(g) Maharashtra Village Panchayats Act, 1958 - The petitioner, a Sarpanch, was disqualified for having an interest in contracts awarded by the grampanchayat, as amounts meant for contractors were deposited in accounts of her husband, father-in-law, and brother-in-law. The court upheld the disqualification, holding that such payments indicate a direct interest in the contracts, and the Collector's order and the Additional Commissioner's appellate order were valid. (Paras 2-4)

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Issue of Consideration

Whether the petitioner, as Sarpanch, had an interest in contracts awarded by the grampanchayat through payments made to her husband, father-in-law, and brother-in-law, warranting disqualification under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958.

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Final Decision

The writ petition is dismissed. The order of the Collector dated 05.01.2022 disqualifying the petitioner under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958, and the order of the Additional Divisional Commissioner dated 07.04.2022 dismissing the appeal, are upheld.

Law Points

  • Disqualification under Section 14(1)(g) of Maharashtra Village Panchayats Act
  • 1958
  • Interest in contracts of grampanchayat
  • Payments to relatives of Sarpanch
  • Scope of 'interest' in contracts
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Case Details

2022 LawText (BOM) (10) 13

Writ Petition No.6619 of 2022

2022-10-20

Sandeep V. Marne, J.

Mr. S.E. Shekade for petitioner, Mr. I.K. Wagh for respondent nos.1 and 2, Mr. K.B. Jadhavar, AGP for respondent State

Archana w/o. Santosh Neharkar

Anil s/o. Maruti Kshirsagar, Parshuram s/o. Baburao Merad, The District Collector, Beed

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Nature of Litigation

Writ petition challenging disqualification of Sarpanch under Section 14(1)(g) of Maharashtra Village Panchayats Act, 1958.

Remedy Sought

Petitioner sought quashing of the Collector's order dated 05.01.2022 disqualifying her and the Additional Commissioner's order dated 07.04.2022 dismissing her appeal.

Filing Reason

Petitioner was disqualified as Sarpanch on the ground that amounts meant for contractors were deposited in accounts of her husband, father-in-law, and brother-in-law, indicating her interest in contracts.

Previous Decisions

Petitioner was earlier disqualified on 09.12.2021 under Section 39(1) of the Act, but that disqualification was set aside by this Court on 26.09.2022 in Writ Petition No.7812 of 2022 due to lack of independent enquiry. The present disqualification under Section 14(1)(g) is a separate proceeding.

Issues

Whether the petitioner had an interest in contracts awarded by the grampanchayat through payments to her relatives, warranting disqualification under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958.

Submissions/Arguments

Petitioner argued that the disqualification was not justified as she had no direct interest in the contracts. Respondents argued that payments to the petitioner's husband, father-in-law, and brother-in-law clearly indicated her interest in the contracts.

Ratio Decidendi

Payments of contract amounts to the close relatives of a Sarpanch (husband, father-in-law, brother-in-law) constitute an 'interest' in the contracts under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958, warranting disqualification.

Judgment Excerpts

Petitioner takes exception to the order dated 07.04.2022 passed by the Additional Divisional Commissioner, Aurangabad rejecting her appeal and confirming the order passed by the Collector, Beed dated 05.01.2022 by which she has been disqualified for being a Sarpanch. the Collector initiated disqualification proceedings under the provisions of Section 14 (1)(g) of the Act of 1958 on the ground of the petitioner having interest in the contracts awarded by the grampanchayat. various amounts meant to be paid to the contractors were found to be deposited in the accounts of petitioner’s husband, father-in-law and brother-in-law.

Procedural History

The petitioner was disqualified by the Collector on 05.01.2022 under Section 14(1)(g) of the Maharashtra Village Panchayats Act, 1958. She appealed to the Additional Divisional Commissioner, who dismissed the appeal on 07.04.2022. She then filed the present writ petition on an unspecified date. The petition was heard and finally disposed of on 20.10.2022.

Acts & Sections

  • Maharashtra Village Panchayats Act, 1958: Section 14(1)(g), Section 39(1)
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