Treasury Buildings Co-operative Society Ltd. is facing survival crisis

Subhodeep Chattopadhyay
Jul 18
5 min read

Updated: Aug 4

Century-Old Treasury Buildings Co-operative Society Ltd. Seeks CAG's Permission for IA&AD Staff Elections 🏛️

How a 104-year-old cooperative society navigates modern administrative challenges while serving India's audit community

The Legacy That Spans Over a Century 📚

In the heart of Kolkata stands a remarkable institution that has weathered colonial rule, independence, and over a century of socio-economic changes. The Treasury Buildings Co-operative Society Limited, established in 1920, represents one of India's oldest cooperative societies serving the Indian Audit and Accounts Department (IA&AD) community.

What started as a modest venture with 87 members and a capital of just ₹8,607 has evolved into a cornerstone institution supporting thousands of government employees and their families. Today, this society faces an unprecedented challenge that threatens its very existence – and it's seeking help from the highest auditing authority in the country.

A Tale of Administrative Evolution 🔄

The Early Years (1920-1940s)

The society's journey began in the colonial era when three important offices shared the Treasury Buildings:

Office of the Accountant General 📊
Office of the Accountant General, Central Revenues (moved to Delhi in 1924)
Controller of the Currency (abolished in 1935, staff transferred to RBI)

As administrative structures evolved, so did the society's membership. By 1930, it welcomed the inferior staff of the Meteorological Office, and by 1938, permanent superior staff joined the fold.

Modern Structure

Today, the society serves five distinguished offices:

Principal Accountant General (Audit-I), West Bengal 🏢
Accountant General (A&E), West Bengal
Director General of Audit (Central), Kolkata
Principal Accountant General (Audit-II), West Bengal
Regional Meteorological Centre, Kolkata

The Current Crisis: When Rules Meet Reality ⚖️

The Game-Changing Circular

In January 2020, a Head Quarters Office Circular fundamentally changed the landscape. The directive stated that "No permission under rule 15(1)(c) of the CCS (Conduct) Rules, 1964 will be granted to IA & AD Staff to contest and hold elective office in such cooperative societies in which membership is also open to persons other than serving or retired officials of IA & AD."

This well-intentioned rule, designed to maintain administrative propriety, created an unexpected constitutional crisis for the century-old institution.

The Compliance Dilemma 🤔

The society found itself in a unique position:

Outstanding loans from non-IA&AD members needed recovery
Immediate membership cancellation would cause severe financial losses
Natural attrition became the only viable solution

The numbers tell the story:

Non-IA&AD membership: 402 (2018) → 129 (2025)
68% reduction through natural attrition
Zero new memberships from non-IA&AD offices since 2020

More Than Just a Cooperative: A Community Pillar 🌟

Financial Services That Matter 💰

The society provides crucial financial support to the IA&AD community:

Education loans for children's academic pursuits 🎓
Wedding loans for family celebrations 💒
Festival advances for cultural celebrations 🎉
Interest rates significantly lower than commercial banks

Social Welfare Initiatives 🤝

Beyond financial services, the society champions:

Group Medical Insurance for comprehensive healthcare 🏥
Blood donation camps saving lives 🩸
Educational awards recognizing academic excellence 🏆
Cultural programs preserving traditions 🎭

The Constitutional Conundrum 📋

Cooperative Federalism at Work

Here's where it gets legally interesting:

Cooperative societies fall under the State List (7th Schedule of Constitution)
West Bengal State Co-operatives Act governs the society
Central government rules create operational constraints

The Doctrine of Intelligible Differentia

This legal principle allows for reasonable classification based on rational criteria. The society argues it deserves special treatment due to:

Historical precedence (104 years of operation)
Substantial financial obligations requiring careful management
Demonstrated compliance through membership reduction
Unique institutional character

The Democratic Deficit 🗳️

Since September 2023, the society has been without elected leadership. The West Bengal Directorate of Co-operation appointed a Special Officer to manage daily operations – a temporary measure that undermines the democratic ethos of cooperative governance.

The impact:

❌ No elected board representation
❌ Suspended democratic decision-making
❌ Compromised strategic planning
❌ Reduced member participation

The Regional Meteorological Centre Factor 🌤️

The Regional Meteorological Centre, Kolkata adds another layer of complexity:

Central Government office under Ministry of Earth Science
129 remaining members (down from 402)
Substantial outstanding loans requiring recovery
Strategic importance in weather forecasting

The Legal Strategy: Seeking Justice 🏛️

The Representation to CAG

The society has crafted a comprehensive legal representation highlighting:

Key Arguments:

Historical antecedence deserving special consideration
Financial prudence in handling outstanding obligations
Constitutional principles of cooperative federalism
Legitimate expectations of century-old membership
Natural attrition demonstrating compliance intent

What They're Asking For 📝

One-time relaxation from the restrictive circular
Permission for IA&AD staff to contest elections
Recognition of unique circumstances warranting special treatment
Restoration of democratic governance

Broader Implications for Cooperative Movement 🌐

This case raises important questions about:

Balancing administrative propriety with institutional heritage
Managing legacy obligations while implementing new rules
Preserving democratic governance in cooperative societies
Constitutional federalism in practice

The Way Forward: Lessons for Policy Makers 🛣️

Policy Considerations

Grandfathering provisions for existing institutions
Phased implementation of restrictive measures
Financial impact assessment before rule changes
Stakeholder consultation in policy formulation

Best Practices Emerging

Natural attrition as a compliance strategy
Transparent communication with regulatory authorities
Comprehensive documentation of unique circumstances
Legal representation emphasizing constitutional principles

What This Means for Government Employees 👥

The outcome of this case will significantly impact:

Cooperative societies serving government employees
Financial services available to IA&AD community
Democratic participation in workplace organizations
Policy implementation across government departments

The Human Side: Stories That Matter 💝

Behind the legal arguments and administrative complexities are real people:

Families depending on affordable loans for education
Employees seeking community support during challenges
Retirees maintaining lifelong institutional connections
Communities benefiting from social welfare programs

Conclusion: Heritage Meets Modern Governance 🎯

The Treasury Buildings Co-operative Society's appeal to the CAG represents more than a simple administrative request. It embodies the tension between preserving institutional heritage and implementing modern governance standards.

The central question: Can a century-old institution serving the public good find accommodation within contemporary regulatory frameworks?

The answer will likely influence how India balances:

Administrative efficiency with institutional continuity
Rule uniformity with contextual flexibility
Democratic governance with regulatory compliance
Heritage preservation with modern standards

Looking Ahead: The Verdict Awaits ⏳

As the CAG considers this unique case, the cooperative movement watches closely. The decision will likely establish precedents for:

Legacy institution treatment under new regulations
Constitutional principles in administrative law
Cooperative federalism in practice
Balance between rules and equity

The stakes are high: Not just for 104-year-old institution, but for the principle that institutional heritage and community service deserve recognition in our regulatory framework.

What do you think? Should century-old institutions receive special consideration when new rules create operational challenges? Share your thoughts on how India can balance administrative efficiency with institutional heritage.

Tags: #CooperativeSociety #IA&AD #CAG #GovernmentEmployees #Kolkata #AdministrativeLaw #CooperativeMovement #InstitutionalHeritage