Gaur Grandeur Apartment Owners Association And 2 Others Vs State of Uttar Pradesh And 2 Others (Allahabad High Court)
Summary: Allahabad High Court stayed the operation of an order dated 30.07.2026 passed by the Deputy Registrar, Firms, Societies and Chits, Ghaziabad, directing an audit of Gaur Grandeur Apartment Owners Association for the preceding four years through an auditor selected from the Deputy Registrar’s panel. The petitioner submitted that the auditor had demanded ₹1,50,000 plus GST for auditing one year’s accounts, thereby imposing an additional financial burden on the Society.
Justice Vinod Diwakar directed the Deputy Registrar to justify the direction contained in the impugned order and specifically explain whether the additional audit expenditure sought to be imposed upon the Society was reasonable and warranted in the circumstances. The Court further directed the Deputy Registrar to file an affidavit disclosing the number of cases during the preceding more than one year in which similar directions had been issued and, separately for each such case, the fee charged by the Chartered Accountant from the concerned Society. The matter was directed to be listed fresh on 24.09.2026 at 2:00 p.m. Until the next date of listing, the effect and operation of the impugned order dated 30.07.2026 was stayed.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
1. Heard Shri G.K. Singh, learned Senior Counsel, assisted by Shri H.P. Sahi and Shri Pratik J. Nagar, learned counsel for the petitioner, as well as Shri Jitendra Singh, learned Additional Chief Standing Counsel for the State-respondents.
2. The present writ petition has been filed challenging the impugned order dated 30.07.2026, whereby the Deputy Registrar, Firms, Societies and Chits, Ghaziabad has directed that an audit of the Society for the last four years be conducted by an auditor selected from the panel maintained by the Deputy Registrar.
3. Shri G.K. Singh, learned Senior Counsel, has submitted that the auditor has raised a demand of Rs.1,50,000/- along with GST towards the audit fee for one year’s accounts. He submits that such demand would impose an additional financial burden upon the Society.
4. In view of the aforesaid submission, the Deputy Registrar, Firms, Societies and Chits, Ghaziabad is directed to justify the direction contained in the impugned order. He shall also explain and justify whether the additional expenses sought to be imposed upon the Society towards the audit are reasonable and warranted in the facts of the case.
5. The Deputy Registrar shall further file an affidavit specifically stating the number of cases in which his office has issued similar directions during the last more than one year. The affidavit shall also disclose, separately in each such case, the amount of fee charged by the Chartered Accountant from the concerned Society.
6. Put up this case as fresh on 24.09.2026 at 02:00 p.m.
7. Till the next date of listing, the effect and operation of the impugned order dated 30.07.2026 shall remain stayed.
