The Maharashtra government has disallowed former tainted directors of Maharashtra State Cooperative (MSC) Bank from contesting the bank elections for ten years, say media reports. The decision is likely to affect future of NCP and Congress cooperators as well as of some BJP leaders.
The decision made by Cooperation Minister Chandrakant Patil, has, however, been attacked by the opposition charging it violated provisions of the Cooperatives Act.
RBI in the year 2011 had superseded the board of directors of the MSC Bank and appointed administrators. The MSCB scam had involved an amount of Rs 450 crore.
The cooperation minister has justified his decision quoting the RBI logic how will the bank recover its money if the accused become directors again.
Sources say the BJP govt decision has dealt a blow to scores of leading politicians from the Congress and the NCP in the state as they would not be able to participate in cooperative elections in the next days.
New Indian Express reports the decision will apply to all banks whose board of directors has been dissolved as per the Reserve Bank of India’s directions and are facing inquiry for mismanagement of funds and illegal transactions. The dismissed directors will be ineligible to contest elections as a director not just in the concerned bank but in any other bank in the state for a total two terms.
The state cabinet has approved an ordinance to amend the Maharashtra Cooperative Societies Act, 1960, to implement this decision.
A majority of cooperative banks are controlled by Congress and NCP leaders. Senior Congress and NCP leaders such as Ashok Chavan, Radha Krishna Vikhe Patil, Patangrao Kadam, and NCP’s Ajit Pawar, Vijaysinh Mohite Patil, Dilip Walse Patil have been actively involved in politics of the district cooperative banks. Interestingly, Pandurang Phundkar from the BJP and Shiv Sena’s Anandrao Adsul, who were on the board of the Maharashtra State Cooperative Bank with several other Congress and NCP leaders, including Pawar, may also be barred from contesting cooperative elections.