Maharashtra legislative assembly has passed an amendment to the Co-operative Societies Act of 1960 to debar suspended directors of cooperative banks involved in mismanagement from contesting election for 10 years.
The amendment as required by the Reserve Bank of India would weaken the influence of the Congress-NCP combine over the cooperative sector in Maharashtra, says Live Mint.
Sources say several politicians including prominent leaders of the Congress-NCP alliance are likely to be hit by the amendment.
Some suspended directors moved the Supreme Court requesting a stay on the implementation of the ordinance, while some others challenged the decision in the Bombay high court on the grounds that it could not be implemented with retrospective effect.