In a categorical statement the newly appointed Cooperative Minister of Delhi Government Rajendra Pal Gautam said the power of recovery of loans would stay with the registrar, in reply to a demand by Delhi Urban Cooperative Banks’ Federation.
The Federation has a long-standing demand that as the process of recovery of bad loans is done in a tardy manner by the Registrar of co-ops leading to an increase in the NPAs of urban cooperative banks, the power should be vested in the Federation. Laxmi Dass, the Chairman of Kangra Co-op Bank is the head of Delhi Urban Cooperative Bank Federation.
The Minister said giving powers to the federation means creating new vested interests; they would punish some, reward others leading to a culture of dictatorship, he added.
I agree there is paucity of staff at the Registrar office and the process of recovery is slow but for that we are recruiting more people and it would be smooth in a couple of months, he assured.
Recently, a delegation from Delhi Urban Cooperative Banks Federation comprising of several chairmen and CEOs of Urban Cooperative Banks of the Capital region had met the Minister renewing their demand.
In that meeting he assured them of looking into the issue but today he was direct and said flat “no” to the idea; Watch it yourself.