Keeping public interest in mind,the Reserve Bank of India (RBI) has granted extension of another six months to the Ahmedabad Peoples Cooperative Bank. The apex bank had earlier served a notice to it seeking explanation as to why it should not be liquidated in view of poor recovery position. In a letter dated November 10,the RBI said it was necessary to extend the period of operation of the directive dated May 13,2008 for a further period of six months. Thus,the bank has got extension from November 13 to May 12,2010,said bank administrator A B Gadhvi on Wednesday. The 270-odd loan defaulters were eagerly waiting for the liquidation orders as this would suit them the best,but at the cost of depositors and shareholders. Gadhvi said the Bank would get some more time for an effective recovery of dues. Depositors have welcomed the move,but are apprehensive about the bank's capability to get those responsible for wrong decisions arrested. Monal Mehta,a member of the APC Bank Depositors Committee comprising Dilip Vyas,Sandispsinh Chudasama,Shantibhai Kapadia,Ratilal Parmar and Ramkrishna Master,said that unless stiff action against the defaulters was taken,the recovery would not be effective. We dont know what is preventing the law enforcing agencies from arresting those responsible for the mess. There seems to be collusion between the police and the offenders, he said. The recovery has so far remained shoddy with only Rs 5.3 crore of the Rs 37.72 crore being recovered over the last six months.
