Telangana High Court directed RBI to appoint an officer to run the administration and day-to-day affairs of Mahesh Cooperative Bank, who will also have power to take policy decisions in the interest of shareholders, reports Deccan Chronicle.
Directing that senior bank officials be consulted for policy decisions, the court said the move is to protect the interests of shareholders and to run daily operations.
The court gave the orders while dealing with interim applications filed by shareholders, seeking directions to returning officer of AP Mahesh Cooperative Urban Bank to exclude from consideration votes cast by 1,800 gold loanees.
However, the court will decide on the validity of the elections and consequential election of members, in a full hearing.
