THE BELEAGUERED depositors of the non-operational Gujarat Mercantile Credit Sahkarita Limited (GMCSL) have rebutted the remark of its managing director Janak Gandhi, which attributed the co-operative’s liquidity crisis to its borrowers.
GMCSL Amanatdar Peedit Sangh convener D K Chaturvedi, who has compiled 930-page documentary evidence (with comparative statistics from 1993-94 to 2005-06), said that the annual statement of accounts present the sum in default with the borrower at Rs 15 crore, which constitutes less than 10 per cent of the total public deposit.
The bulk of advances made in 1999-2000 at GMCSL were cornered as overdraft (OD). In 2004-05, the OD constitutes 76.08 per cent of the total advances and the sum with defaulters was only 10 per cent of the deposit. Thus 90 per cent of the public deposit was drained and stashed with the commercial ventures of the OTG Group and other commercial entities, he said.
Apart from Janak Gandhi and his family, its board of directors also played a role in siphoning off this amount. The nine directors were part of GMCSL governance since 1995-96 and continued to hold the post till date. In addition, its promoters were also included in board of governance.
The annual statements and reply made in response to a Vidhan Sabha query states that GMCSL does not have any immoveable property, but records demonstrate that large properties have been acquired with GMCSL deposits in the family’s name and a plot at Talavalichaanda owned by a family member has recently been sold for Rs 4 crore.
Similarly, the Gujarat Bhavan at Sanyogitaganj acquired through depositors’ money was registered in individuals’ name and then handed over to a group of depositors of particular community against their deposits. “Housing complex Kalindi Kunj in Shri Nagar Extension was developed at the expense of GMCSL depositors and so was the Basketball Complex building on Race Course Road,” Chaturvedi said.
However, Janak’s brother Vijay Gandhi denied all this. “Nor have we sold any plot at Talavalichaanda,” he told Hindustan Times.