Samata bank’s liquidation on cards

Samata Bank is one of the three cooperative banks in Maharashtra likely to be liquidated soon. Both the state CID and the Enforcement Directorate(ED) have begun criminal proceedings in this connection.

The borrowers have been charged with ruining the bank’s finances in collusion with the bank directors and, the total amount swindled is Rs 145 crore.

Samata Bank had to be shut down after the RBI banned its activities in 2005. Large-scale bad loans were the main reason responsible for the bank’s crisis.

Samata Bank is among the three urban cooperative banks that were closed down between 2004 and 2008. The other two banks were Nagpur Mahila Bank and Parmatama Ek Sevak. .