Govt money should not be kept in co-operative banks: HC

In a strong condemnation of the state of co-operative banks in Maharashtra, the Bombay High Court has said that government bodies should avoid depositing money with them to prevent "further loss".

In a strong condemnation of the state of co-operative banks in Maharashtra, the Bombay High Court has said that government bodies should avoid depositing money with them to prevent "further loss".

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"It is a matter of concern, particularly in the state of Maharashtra, that crores of rupees of public money have been lost due to fraud played in co-operative banks," the High Court said.

Therefore, the "directions issued by the state from time to time to invest or deposit the money with cooperative banks require a serious reconsideration and, in my opinion, recall thereof in order to avoid further loss of public money," Justice A B Chaudhari said.

The High Court, which is dealing with a petition filed by Municipal Commissioner of Akola regarding a case of corruption against him, also said that only a provision of life sentence could deter the "cancer of corruption".

Currently, the Prevention of Corruption Act provides for maximum punishment of 7 years and this was not "deterrent" enough, Justice Chaudhari said in the order last week.

According to the complaint filed by one Anand Balode, Kurve deposited Rs 1 crore-30 lakh belonging to the Corporation with Vidarbha Urban Cooperative Bank, though there was a branch of Dena Bank in the corporation premises.