Pratik Shah cannot repay bank dues while in jail: APC Bank

Gadhvi said the problem was Shah could not be bailed out and he would not be able to repay while in jail.

The bank,when it functioned under the board of directors led by Nayan Majmudar,who is now in jail,had disbursed a loan of Rs 22 crore violating the norms.

Gadhvi said: “Once a person is arrested,it is the task of the appropriate authorities to deal with or comment on such things; the bank is not in the picture thereafter,” refusing to comment on Majmudar who has sought concessions on the plea of ill health in jail as alleged by the depositors.

Monal Mehta — one of the seven-member depositor panellists formed to keep tabs on the recovery of dues — said that action should be taken against the ousted directors for extending credit indiscreetly. They should also be questioned for doling out a large chunk of credit to one party,Mehta added.

Gadhvi said the RBI inspectors might have noticed this discrepancy during scrutiny.

Hemant Rindani,the general manager of the bank said,depositors should restrict their role to help the bank achieve effective recovery. They need not interfere with the bank’s management,he said.

Gadhvi said the panel members did precious little beyond seeking information so far. He said once the bank’s investment of Rs 5 crore with ING Life Insurance is freed of the lock-in period,it will be a major relief for the troubled bank.