Bombay Mercantile Cooperative (BMC) Bank has been involved in dubious dealings but Reserve Bank of India and the Registrar of Cooperatives have yet to take action, reports Money Life.
Investors, employees and shareholders have been calling for the regulatory authorities’ urgent intervention to stem the rot.
Earlier the news outlet had reported about a new management being installed at the Bank, which aimed to ensure a clean-up. But the new management was not allowed to function and the former management was able to be back in control of the bank.
What made matters worse, although the RBI has imposed stringent conditions on the banks’ operations and stopped the bank from sanctioning fresh loans, the old management is alienating assets and weakening the bank that has over 2,300 people working as its employees.
Meanwhile, some whistle-blowers have made serious allegations against the old management and revealed that Punjab National Bank and Canara Bank have filed criminal complaint against them for criminal conspiracy, cheating and criminal misconduct.