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File case against MSC bank: Oppn

The Maharashtra State Co-operative (MSC) Bank, which came under the Reserve Bank of India scanner, faced the ire of the Opposition in the Legislative Council on Tuesday.

mumbai Updated: Aug 10, 2011 01:05 IST
HT Correspondent

The Maharashtra State Co-operative (MSC) Bank, which came under the Reserve Bank of India scanner, faced the ire of the Opposition in the Legislative Council on Tuesday.

The Opposition demanded a police case be lodged against the bank’s officials. BJP legislator Vinod Tawde flashed a home department circular, dated January 2008, which calls for lodging an FIR on banks involved in fraud.

"There were several misappropriations. But the government has not filed a case as yet," Tawde said.

"The current net worth of the bank is Rs 404 crore and the cash reserve ratio is 5.86%. Both the figures are in the positive and have fulfilled the RBI’s requirement," said minister of state for cooperatives Prakash Solanke.

He admitted that the bank had sanctioned a loan worth Rs 12 lakh to bank chairman Manikrao Patil’s son and his wife’s company had been given a loan of Rs2 crore. "These amounts are being paid back in timely installments," he said.

Shiv Sena leader Diwakar Raote demanded an explanation from the state. The Opposition walked out after Solanke did not answer.