Challenging Nabard: SC ruling cheers up DCCBs

The Supreme Court has allowed District Central Cooperative Banks [DCCBs] across the country to show nullified currency notes as cash in hand instead of showing them as losses in their balance sheets- a ruling that has cheered up cooperators connected to these banks.

Hailing the decision of the apex court, Ramesh Thorat, Chairman of Pune District Central Cooperative Bank told this correspondent that the highest court’s verdict has vindicated their stand.

“Several inquiries were conducted by Income Tax, Enforcement Directorate and CBI in these banks but no loopholes were found. We have old currency notes worth Rs 22 crore in our coffers”, Ramesh Thorat said.

Readers would recall NABARD had recently issued a letter to all District Central Cooperative Banks of Maharashtra asking them to destroy old currency notes and keep written records of their losses. The missive sent by Nabard had created panic among these banks.

Earlier, several cooperators connected to these banks had objected to the NABARD’s letter saying they would knock on the door of the Supreme Court but their view has changed following the apex court’s verdict.

Talking to this correspondent, Hasan Mushrif, Chairman of Kolhapur DCCB also hailed the apex court’s verdict.

Mushrif said nationalized and private banks are swindling crores of rupees but neither the Government nor the Reserve Bank of India are doing anything against them, they are only targeting the cooperative sector.

An enthusiastic Sitaram Giykar, Chairman, Ahmednagar DCCB said “We are happy that the Supreme Court has given a stay on the order and announced the verdict in our favor. About Rs 11 crore in old currency notes is lying still with us and this is the farmers’money ”.

According to an estimate, eight cooperative banks including Pune, Sangli, Wardha, Nagpur, Ahmednagar, Amravarti, Kolhapur and Nashik District Cooperative Banks are stuck with old currency notes of over Rs 110 crore after demonetization.

 

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