Maharashtra State Cooperative Bank has long been in crisis but the state govt has nothing to find a satisfactory way of dealing with the crisis.
It is against this background that an organisation called Jan Manch has petitioned the Nagpur bench of the Bombay high court to intervene in the matter.
Taking cognizance of the petition, a division bench of the court has issued notices to the state govt, Nabard, Reserve Bank of India, cooperatives commissioner and MSCB.
A recent audit report had revealed that the bank had given loans to sugar factories that violated fundamental financial norms.
Sources say the bank had not only indulged in unsustainable financial transactions but also messed up its administrative affairs. For example, the bank did not shift a bulk of its staff and allowed them to stay at the same place for long when as per rules their shifting was necessary.
They add now that the court has taken up the matter the prospects of the crisis being resolved have brightened up.
