The proposed merger of two cooperative banks in Gujarat namely Kaluur commercial cooperative bank and Surat’s Udhna cooperative bank has caused hackles to rise so much that the matter has been challenged in the high court through a public interest ligation.
The high court has asked the central govt, RBI and the Cooperative Registrar to file their reply within seven days.
The petition claims that under the Gujarat cooperative societies act such a merger would be absolutely illegal.
As the merger is not in accordance with the cooperative laws the petition wants the court to stop it.
The state government has, however, opposed the petition arguing that the petition is untenable as the merger has not yet happened.