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Maha: Another co-op bank's board dismissed, administrator

PTI Pune
Updated: 12-10-2019 22:10 IST
Maha: Another co-op bank's board dismissed, administrator

Close on the heels of crisis at PMC Bank, the cooperative department of the Maharashtra government has dismissed the board of directors of Pune- headquartered Shivajirao Bhosale Cooperative Bank Ltd. The development at the bank, promoted by Anil Shivajirao Bhosale, NCP leader and Member of Maharashtra Legislative Council (MLC), has left around one lakh customers in the lurch.

A special scrutiny conducted by the Reserve Bank of India in April 2019 revealed several "adverse" features and "serious irregularities" in the functioning of the bank, said the order issued by Commissioner of Cooperation Satish Soni on October 9. The Commissioner of Cooperation and Registrar of Cooperative Societies, in consultation with the RBI, superseded the present board of directors, and appointed Narayan Aghav, district deputy registrar, as administrator, the order said.

Mihir Thatte, member of a group which takes up the cause of depositors of distressed banks, said some one lakh account-holders of Shivajirao Bhosale Cooperative Bank are not being able to withdraw their money at present. Loans of Rs 300 crore were disbursed by the bank to bogus borrowers at the behest of politicians, bringing about the present crisis, he said.

Recently the RBI appointed imposed restrictions on withdrawal of funds from Punjab and Maharashtra Cooperative (PMC) Bank, which operates in Mumbai and rest of Maharashtra, following discovery of a Rs 4,350 crore scam..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)