Depositors of Shivajirao Bhosale bank appeal for fast-tracked refunds

Investors and depositors of Shivajirao Bhosale Co-operative bank are worried about the refund of their money as they want their finances protected and reimbursed to them at the earliest after the Reserve Bank of India (RBI) cancelled the license of the bank on Monday

Investors and depositors of Shivajirao Bhosale Co-operative bank are worried about the refund of their money as they want their finances protected and reimbursed to them at the earliest after the Reserve Bank of India (RBI) cancelled the license of the bank on Monday.

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Drawing parallel with previous financial scams and loss of investor confidence in getting back their money, the depositors appealed to the RBI to fast track their reimbursements.

The RBI cancelled the license claiming that the bank does not have adequate capital and earning prospects. In its order dated May 28, 2021, the RBI stated “Consequently, the bank ceases to carry on banking business, with effect from the close of business on May 31, 2021. The registrar of cooperative societies, Maharashtra has also been requested to issue an order for winding up the bank and appoint a liquidator for the bank.”

Consequent to the cancellation of its licence the Shivajirao Bhosale Sahakari bank Ltd., Pune, Maharashtra is prohibited from conducting the business of ‘banking’ which includes acceptance of deposits and repayment of deposits as defined in Section 5(b) read with Section 56 of the Banking Regulation Act, 1949 with immediate effect, the order stated.

Pravin Walvekar, one of the members of Shivajirao Bhosale Bank Kruti Samiti said “In the past , the refund would take a long time and it was a long-drawn process but as per the new legislation the clarity has been brought. There is an insurance cover insured against each depositor to the extent of liability of ₹5 lakh and this amount must be given within three months. We hope that the insurance companies pay the amount to the depositors at the earliest.”

“Initially, the auditor was unwilling to lodge a police complaint and we told him we will complain to the Institute of Chartered Accountants seeking debarring his license and after the complaint was lodged. Then EOW took over and kept on delaying for some time. Unscrupulous methods were used to manipulate the banks and siphoned off the money belonging to depositors and investors. The scam took place because of the interference of the political machinery, and we want justice to be done,” Walvekar said.

Sangeeta Thombare, a teacher said “We have seen that during previous financial fraud cases in the city, the refund has still not come even after 10 years following the arrest of the fraudsters. This time the RBI must carry out special work and ensure that all the depositors are given back their dues. The law enforcement including RBI and other government department has been very slow in investigating the case.”

Macchindra Talpe, a depositor of the bank said “I had deposited ₹10 lakh for the scheme but lost the entire money which I needed to fund the education of my children. Today, I am living in debt and afflicted by disease due to fraud played on us by Anil Bhosale and his associates. We don’t have any hopes left as refund seems to be a distant possibility.”

As many as 71,000 investors have invested a fixed deposit of ₹5 lakh, while 8,000 investors invested more than ₹5 lakh in the form of various deposits. In January 2020, the Pune police registered a case against Maharashtra State Legislative Council (MLC) and bank chairman Anil Bhosale, bank director Suryaji Jadhav, chief accountant Shailesh Bhosale and chief executive officer Tanaji Padwal. A case has also been registered against Bhosale’s wife Reshma Bhosale who is also an accused in the case. The case was registered under sections 406, 408, 468, 471 and 34 of IPC and relevant sections of Maharashtra Protection of Interest of Depositors (MPID).