Cuttack: Orissa high court has set aside a single judge’s ruling that upheld an order issued by the auditor general of cooperative societies (Odisha) for a special audit of the affairs of Sundargarh District Central Cooperative Bank.
The AG issued the order on June 11, 2021, authorising auditors from the Sundargarh audit circle to examine the alleged irregular appointment of the chief executive officer (CEO) and financial mismanagement in the bank.

Two separate petitions were filed by Bhabani Prasad Majhi and Pradyumna Kumar Tripathy in 2022. Both petitions challenged the AG’s order on the grounds that the auditors assigned to conduct the special audit lacked the required credentials.
However, the bench of Justice S K Panigrahi held that the special audit was valid and refused to interfere on July 16, 2024.
Majhi and Tripathy filed separate appeals challenging the single judge’s order. While disposing of the appeals, the two-judge bench of acting Chief Justice Arindam Sinha and Justice M S Sahoo set aside the single judge’s order on Jan 20.
The bench stated, “We are not required to go into the controversy regarding whether or not the auditor general could exercise the power for a special audit in respect of managerial aspects of the co-operative bank. This is because the auditors appointed are admittedly not on the panel approved by the national bank.”
The bench noted that Section 62 (1)(i) and the second proviso under the clause of the Odisha Co-operative Societies Act, 1962, provided that the accounts of the Odisha State Co-operative Bank and the Central Co-operative Bank shall be audited by the chartered accountants from the panel approved by the national bank.
Accordingly, while quashing the July 16, 2024, judgment, the bench also set aside “the appointment order dated June 11, 2021, made by the auditor general and the report made pursuant thereto”.
Cuttack: Orissa high court has set aside a single judge’s ruling that upheld an order issued by the auditor general of cooperative societies (Odisha) for a special audit of the affairs of Sundargarh District Central Cooperative Bank.
The AG issued the order on June 11, 2021, authorising auditors from the Sundargarh audit circle to examine the alleged irregular appointment of the chief executive officer (CEO) and financial mismanagement in the bank.
Two separate petitions were filed by Bhabani Prasad Majhi and Pradyumna Kumar Tripathy in 2022. Both petitions challenged the AG’s order on the grounds that the auditors assigned to conduct the special audit lacked the required credentials.
However, the bench of Justice S K Panigrahi held that the special audit was valid and refused to interfere on July 16, 2024.
Majhi and Tripathy filed separate appeals challenging the single judge’s order. While disposing of the appeals, the two-judge bench of acting Chief Justice Arindam Sinha and Justice M S Sahoo set aside the single judge’s order on Jan 20.
The bench stated, “We are not required to go into the controversy regarding whether or not the auditor general could exercise the power for a special audit in respect of managerial aspects of the co-operative bank. This is because the auditors appointed are admittedly not on the panel approved by the national bank.”
The bench noted that Section 62 (1)(i) and the second proviso under the clause of the Odisha Co-operative Societies Act, 1962, provided that the accounts of the Odisha State Co-operative Bank and the Central Co-operative Bank shall be audited by the chartered accountants from the panel approved by the national bank.
Accordingly, while quashing the July 16, 2024, judgment, the bench also set aside “the appointment order dated June 11, 2021, made by the auditor general and the report made pursuant thereto”.