The new cooperation minister in Maharashtra has expressed worries about the financial difficulties being faced by 517 urban cooperative banks in the state. The minister Chandrakant Patil said the banks are on a financial knife edge primarily because they are unable to recover their non-performing assets.
The new govt in Mumbai has extended the deadline for recovery of bad loans to March next year.
Sources say most of the banks had given loans without adequate collateral. What was still worse, the banks had been subject to political pressure not to get back their money from their defaulters, sources add.
The buzz is the new govt. is deadly serious about recovery of loans and would not flinch from taking tough decisions.
Remedy lies in the folloeing Statement. Registrar’s role in Banking Co-operatives is any way limited and seen as intereference. But where a call of the duty of the Registrar is to invoke provisions of Section 73(1AB) of MCS Act 1960 why there is no news on this?
“Sources say most of the banks had given loans without adequate collateral. What was still worse, the banks had been subject to political pressure not to get back their money from their defaulters, sources add.”
Section 731AB reads as under:
(1AB) The members of the committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the
society. The members of the committee shall be jointly and severally responsible for all
the acts and omissions detrimental to the interest of the society.
Provided that, before fixing any responsibility mentioned above, the Registrar shall inspect the records of the society and decide as to whether the losses incurred by the society are on account of acts or omissions on the part of the members of the committee or on account of any natural calamities, accident or any circumstances beyond the control of such members:
BAD LOANS are bad from day one as the Board deliberately overlook loan sanctioning discipline.