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Who?ll listen to CCB depositors?

india Updated: Jul 17, 2006 01:07 IST

THE VOICE of over 17,000 duped depositors of the City Cooperative Bank (CCB), demanding the money they had deposited with the bank, has so far proved to be a cry in the wilderness.

Having fought a relentless legal battle, these harried depositors, majority of whom are retired people and invested their life’s savings with the CCB, have now pinned their hope on Cooperative Minister Shiv Pal Yadav to do the needful. Drawing the minister’s attention towards their plight as the matter has been hanging fire for over five years now, the depositors have sought his intervention to ensure settlement of their claim with the defunct bank.

In a memorandum, vice-president of the City Cooperative Depositors’ Welfare Society (CCDWS), Ashok Sur said that the CCB had deposits of Rs 26 crore with it. “While lakhs of rupees from depositors have been spent by the bank under various heads in the past five years, the depositors have been paid Rs 1,000 only,” he said. Besides this money, CCB promoters (read the Joharis) possess property assets to the tune of Rs 50 crore. They have even admitted before the courts to possessing this massive property. Therefore, the courts have appointed a receiver to dispose of those assets,” said Sur.

In their four-point charter of demand, the depositors’ association told the Coopertive Minister that as per the RBI guidelines, in the event of bank’s closure, the Depositors’ Insurance and Credit Guarantee Corporation (DICGC) should pay them Rs 1 lakh immediately. Subsequently, those who have deposited over Rs 1 lakh in the bank should be paid on a pro-rata basis.

Repayment to institutional depositors of the CCB should be made from the proceeds accruing through the sale/auction of the promoters’ property. Lastly, the process to payback the depositors should be carried out under the supervision of a retired High Court judge or any other responsible person, who should be appointed for the purpose, said the letter seeking necessary instructions from Yadav to get the matter expedited.

A copy of the memorandum has also been forwarded to the agriculture production commissioner and the district magistrate who is CCB’s administrator.