The recent clarification issued by the Maharashtra Cooperation Department on the 10-year tenure rule for cooperative bank directors appears to have had a significant on-ground impact, with three directors who have completed more than 10 consecutive years on the board clearing scrutiny in the election of Janata Urban Cooperative Bank, Wai, Satara.
Speaking to Indian Cooperative over the phone, the Returning Officer, who is also the Assistant Registrar at Wai, confirmed that the nominations of Sureshrao Korde, Baliram Jagtap and J.P. Kadam were accepted during scrutiny.
The development assumes significance in the wake of the Maharashtra Cooperation, Marketing and Textile Department’s clarification that a Returning Officer cannot reject a nomination solely on the ground that a candidate has completed 10 consecutive years as a director under the amended Banking Regulation Act, 1949.
The clarification followed a legal opinion issued by the Law and Judiciary Department on 18 August 2026, which endorsed the legal position advanced by Vidyadhar Anaskar, Administrator of the Maharashtra State Cooperative Bank.
The Returning Officer told Indian Cooperative that, prior to scrutiny, communication had also been received from the office of the Maharashtra State Cooperative Election Authority, directing the election machinery to take decisions in accordance with the government’s clarification.
The Wai election could therefore emerge as an important practical example of the State’s position that completion of 10 years as a director, by itself, cannot be used as a ground for rejecting a nomination.
The 11-member board of Janata Urban Cooperative Bank comprises six general seats, two women’s seats and one seat each reserved for SC, ST and OBC candidates.
A total of 46 nomination forms were submitted. One duplicate nomination was excluded, while another was rejected during scrutiny on bye-law grounds, leaving 44 valid nominations.
The withdrawal process has now begun, and the final shape of the contest is expected to become clearer after the withdrawal period. The election is scheduled for 20 September 2026.
The bank has a business volume of around Rs 160 crore and accumulated losses of approximately Rs 3.50 crore, down from about Rs 8 crore earlier.
With three directors who have completed the 10-year tenure now clearing scrutiny, the Wai election is being closely watched as an important early test of Maharashtra’s latest position on the contentious 10-year directorship rule.
The clarification could have wider implications for Maharashtra’s 450-odd UCBs, of which a large number are governed by the State Act, and 31 DCCBs. Its impact could be particularly relevant to upcoming elections of these State-regulated cooperative banks, where directors completing 10 years may face similar nomination objections.
