Co-op banks in 5 states to go on strike on May 12 | india | Hindustan Times
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Co-op banks in 5 states to go on strike on May 12

Banks of Gujarat, Maharashtra, Tamil Nadu, Kerala and Andhra Pradesh would strike work.

india Updated: May 09, 2006 21:21 IST

Demanding a roll-back of the Centre's decision to withdraw exemption offered to cooperative banks from paying Income Tax, 300 co-operative banks in five states would go on strike on May 12.

"The step would prove to be death knell for the cooperative bank sector of the country," Gujarat Urban Co-operative Banks' Federation's (GUCBF) president Dollar Kotecha said.

He said that GUCBF counterparts in Maharashtra, Andhra Pradesh, Tamil Nadu and Kerala would also join the strike and remain closed on May 12.

Finance Minister P Chidambaram, in his 2006-07 budget, had withdrawn cover of section 80 P of Income Tax Act, 1961 and levied 33 per cent income tax on the cooperative banks of the country.

Kotecha said that the government had earlier given them cover of section 80 P considering the service rendered by the co-operative banks to the weaker sections for over 100 years.

Ex-chairman of Maharashtra Urban Co-operatative Banks' for Federation Limited KD Vora alleged that a deliberate attempt was being made by private sector banks to finish the cooperative banks culture of the country.

"It seems that the Finance Minister is also working to finish the cooperative movement," he added.