Bleak prospect: NAFCUB remains trapped in arbitrations

The apex body of urban cooperative banks and credit cooperative societies NAFCUB continues to battle court cases with both its future and focus getting derailed.

While the matter if the Board has the power to move no-confidence motion is being decided by second arbitrator Mr Subhas Chandra Gupta, the execution aspect of the earlier judgement is in the High Court. Today that is on Friday there is again a hearing in the Delhi High Court.

The first hearing of the Arbitrator Mr Gupta took place on July 6th where preliminary formalities were completed, the next hearing is slated for 28th July. Arbitrator Gupta is a Phd in law and NAFCUB hopes to resolve the ticklish law point with his legal insight.

The two major sides- NAFCUB and ousted President Mukund Abhyankar were represented by their lawyers, though Nafcub Chief Executive Subhas Gupta was also present on the July 6 hearing.” Being the first date several files were to be signed by me”, Gupta said explaining his presence.

It bears recall that Abhyankar staked his claim in the wake of the High Court ruling going in his favour earlier. Later it transpired that he had to acquire a decree from a civil court before assuming office. And it was upturned by the Central Registrar.

Earlier, the Arbitration had set aside the proceedings of the two board meetings 147th and 148th. In the 147th Board meeting, a no-confidence motion was passed against Abhyankar and the 148th meeting decided to go for fresh elections.

“While the law is with Abhayankar, cooperators are with Jyotindra Mehta”, said an insider. Even if he wins all the cases, he would not be able to run the affairs of co-op federation in an uncooperative atmosphere, he added.

Nafcub represents more than 1700 urban cooperative banks and thousands of credit co-ops in the country. Interestingly, its website does not mention anybody as the President. It straightway begins with two Vice Presidents- R B Sandilya and Vidyadhar Vamanrao Anaskar.

The state of uncertainty in the apex organization does not augur well for the cooperative movement in the country.

 

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