The Board of Directors of Kerala-based Tiruvalla East Co-operative Bank has been dissolved by the Joint Registrar of the Cooperation Department under Section 32 of the Kerala Co-operative Societies Act.
Bank Chairman Prof. Dr. Jacob George alleged that the action was politically motivated and taken without prior notice or an opportunity for the Board to present its case.
Speaking to Indian Cooperative, George said Cooperation Department officials arrived at the bank on Monday with police personnel, took charge of the institution and removed the Managing Director.
He linked the action to Kerala’s political change, noting that the Board is associated with the LDF while the state is now governed by the UDF.
It is said that the complaints mainly related to alleged irregularities in the appointment of the Managing Director and employees, besides renovation work carried out on old bank buildings.
George said the inquiry officer sought around 64 documents on August 13, but the bank sought additional time, particularly over confidential RBI-related records. The bank approached the RBI for clarification and was awaiting a response.
He also questioned the lack of prior RBI consultation, as the bank is an RBI-regulated Urban Cooperative Bank.
George said the bank will challenge the order in court. The bank has a business mix of around Rs 240 crore and has been incurring losses for several years.
