The recently concluded board election of Maharashtra-based Sanmati Sahakari Bank Limited in Kolhapur has landed in controversy after the Cooperative Election Authority (CEA) held that the nominations of six directors earlier declared elected unopposed were liable for rejection.
The development comes weeks after all 17 directors of the multi-state cooperative bank were initially declared elected without contest through form submitted by the Returning Officer (RO).
In an order issued on Tuesday, the Office of the Cooperative Election Authority under the Union Ministry of Cooperation accepted the revised recommendations of the Returning Officer and observed that only 11 candidates were found to fulfil the eligibility conditions prescribed under the bank’s bye-laws.
The CEA observed that the bank’s CEO failed to assist the Returning Officer in the free and fair conduct of the election and did not supply correct records as mandated under Rule 19H(8) of the MSCS Rules.
The Authority stated that incorrect and selective information initially led to acceptance of nominations that were otherwise liable for rejection under Bye-law 36(d), which requires candidates to hold shares worth at least Rs 25,000 and maintain a lien deposit of Rs 50,000 for at least 12 months prior to the election.
The six candidates whose nominations were found non-compliant include Mahavir Khawate, Prafull Manere, Rohan Patil, Sneha Patil, Lata Patil and Prashant Kambale.
Talking to Indian Cooperative, outgoing chairman Sunil Patil described the issue as a “technical mistake”. He said the six rejected directors were senior members but may have had incomplete shareholding compliance, leading to their disqualification. “We are ready for re-election,” he said.
The Authority has now directed the Returning Officer to submit a revised Form 19M clearly indicating the candidates elected under the General, Women and SC/ST categories along with details of vacant seats, after which a revised schedule for election of office bearers will be issued.
The controversy comes amid major changes in the bank’s leadership, as nearly 10 directors from the previous board had already exited due to new tenure-related norms in cooperative banking governance.
