In Brief
This case addressed whether the State of Maharashtra could approve registration of new cooperative societies despite a Scrutiny Committee's finding that they failed to meet mandatory economic viability criteria set by Government Resolutions. The Supreme Court held that economic viability is a non-negotiable prerequisite under the Maharashtra Co-operative Societies Act, 1960, that must be verified by expert committees. The State cannot relax such mandatory conditions through individual appeal orders; changes require new Government Resolutions. Since the Scrutiny Committee had identified specific financial deficiencies and the State provided no evidence of perversity, interfering with its findings was improper. The Court upheld the High Court's cancellation of the State's registration orders, emphasizing that bypassing eligibility criteria frustrates the Act's object and risks harming cooperative members.
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