Cong-NCP bury hatchet over apex coop bank board's dissolution | mumbai | Hindustan Times
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Cong-NCP bury hatchet over apex coop bank board's dissolution

mumbai Updated: May 22, 2011 11:59 IST

Maharashtra's ruling Congress-NCP combine appears to have buried the hatchet over dissolution of the board of directors of the state's apex cooperative bank with Chief Minister Prithviraj Chavan saying the government was serious about reviving it.

Seeking to allay apprehensions of ally NCP whose leaders, particularly Deputy Chief Minister Ajit Pawar, virtually controlled the bank for over a decade, Chavan ruled out any further action against its directors.

Pawar is one of the directors of Maharashtra State Cooperative Bank (MSCB), whose board of directors was dissolved earlier this month by RBI following its indictment by NABARD.

The NCP leader was widely seen as the controlling authority in the MSCB. In its audit report, NABARD had severely indicted MSCB over its negative net worth of Rs 144 crore caused due to various irregularities.

Catering to 1,873 agricultural credit cooperative societies, 572 urban cooperative banks, 31 district central cooperative banks (DCCBs) and 1,009 other cooperative institutions, MSCB forms the back bone of the cooperative movement in the state, thus having considerable influence over rural votes.

"The appointment of administrators by the RBI is the only action taken so far which is enough. The bank is not going into liquidation. The government is serious about reviving and strengthening it," Chavan told reporters after a meeting of the state cabinet on Friday.