Mumbai Local

Bank scam accused to be served notice

Nationalist Congress Party (NCP) bigwigs, battling corruption charges, now have another issue on hand. The state government on Tuesday announced that the former board of directors of the Maharashtra State Co-operative Bank Limited will be sent property attachment notices.

The apex bank of all co-operative banks in the state was reeling from losses, allegedly because of unlawful decisions and sanctions by the board of directors over the past few years. The bank’s losses are pegged at Rs 1,600 crores.

Taking note of the allegations, former Chief Minister Prithviraj Chavan had initiated an inquiry and dissolved the board by appointing an administrator.

Prominent political leaders in the list of directors include NCP leaders Ajit Pawar, Hasan Mushrif, Amarsinh Pandit; Congress’ Vijay Vadettivar, Madhukar Chavan; BJP’s Pandurang Fundkar and Shiv Sena leader Anand Adsul.

State’s co-operative minister Chandrakant Patil, while replying to the attention motion called by BJP MLA Anil Gote, said the inquiry into the Rs 1,600 crore scam is over. “As per the co-operation act, the inquiry, which will get over on May 22, 2016, can be given a two-year extension. This government will not give further extension,” said Mr Patil. He informed the house that notice of property attachment will be sent to all directors who are found responsible for the scam after May 22. “Notice under section 90 of co-operation act will be sent to all 77 responsible directors. Each director will be held responsible for the deeds. Inquiry officers have submitted the report to the government and as a result, no one will be spared,” said Mr Patil.

Among a number of decisions that led the bank to losses include loan allotment to co-operative sugar and cotton factories, which were running at a loss, loans without mortgage and negligence on loan recovery.

Following Mr Patil’s reply, NCP leader Ajit Pawar said the present inquiry is during the term 2007-2011, but there have been instances of sale of sugar factories at rates less than the market value even after 2011 when the administrator was running the bank. “Will that also be part of the inquiry?” asked Mr Pawar, to which the minister replied saying action will be taken as per co-operative act.



NCP and Congress leaders are accused of taking decisions that led to a loss of Rs 1,600 cr



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Printable version | May 8, 2021 4:04:16 AM | https://www.thehindu.com/news/cities/mumbai/news/bank-scam-accused-to-be-served-notice/article8020462.ece

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