Today in New Delhi, India
Dec 10, 2018-Monday
New Delhi
  • Humidity
  • Wind

Cong, NCP leaders get notices to recover Kolhapur bank losses

Cooperation dept acts on CAG reports that found bank’s incumbent and former directors disbursing illegal loans

mumbai Updated: Oct 27, 2015 00:16 IST
HT Correspondent
HT Correspondent
Hindustan Times

State government has served the notices to 46 incumbent and former board directors of the Kolhapur District Central Cooperative Bank for the recovery of Rs147 crore that was illegally disbursed as loans.

Former ministers Hasan Mushrif, Satej Patil, Vinay Kore and former MP Nivedita Mane are among those who have been served notices for irregularities in loan disbursement, based on reports from the Comptroller and Auditor General (CAG). The properties of these politicians could be attached.

The cooperation department served the notices after cooperation minister Chandrakant Patil upheld the department’s decision during the hearing on October 14. The hearing was held by the minister, who enjoys quasi-judicial powers, in appeal filed by the directors against departmental orders of the recovery notice served under section 98 of the Maharashtra Cooperative Societies Act earlier this year.

“Maharashtra Cooperative Societies Act has a provision of attachment and auction of properties to recover losses. We have many such examples of recovery done by attaching properties in the past,” said Shaileshkumar Sharma, principal secretary, cooperation department.

According to another officer from the department, the directors held guilty for the losses have already submitted the details of their individual properties.

The Congress and the Nationalist Congress Party (NCP) have alleged that the action was politically motivated.

Congress leader and former minister of state Satej Patil said that the action was politically motivated. “The decision was announced on the eve of the Kolhapur civic body election with the intention of gaining political mileage,” he said.

Patil added that due process have not been followed. “As per the provisions of the Act, the mortgaged properties of the borrowers should have attached before initialing action against us. We are moving court against the action,” he said.

First Published: Oct 27, 2015 00:16 IST