State govt gives nod to amend coop societies bill
The provision will be applicable to all members of the board of directors dissolved by the state government in the past, according to the directives of the Reserve Bank of Indiamumbai Updated: Mar 16, 2016 00:55 IST
In a move that will have political repercussions, the state Assembly on Tuesday cleared a bill to amend the Maharashtra Cooperative Societies Act, barring tainted directors of banks from contesting polls to any cooperative bank post for 10 years.
The provision will be applicable to all members of the board of directors dissolved by the state government in the past, according to the directives of the Reserve Bank of India. If such a person is currently a director for various banks, he will have to resign from the post, if any bank governed by him was dissolved for financial irregularities in the past 10 years.
The amendment has put many Congress and Nationalist Congress Party leaders in a soup, as several district cooperative banks led by them were dissolved under section 110(a) of the Act. Ajit Pawar, Vijaysinh Mohite Patil, Hasan Mushrif, Dilip Sopal, Madhukar Chavan, Yashwant Gadakh, Satej Patil and other Congress and NCP leaders are now likely to face action for alleged irregularities during their terms as directors of various district coop banks. The directors who had registered a dissent note against the controversial decisions leading to the irregularities, too, will not be spared from the action, under the provisions of the bill. The state government has passed an ordinance and initiated action. The decision will affect the NCP and Congress in their bastions, where they have a strong grip over the cooperative sector.
During the discussion on bill, legislators from the ruling side suggested incorporating the amendment to bar family members of disqualified directors, to weed out the possibility of the director posing as their representative.