The board of directors of the Nashik District Central Cooperative Bank (DCCB), as well as of the wholesale
market there, were dismissed by the state government on Saturday. Both the bodies were dismissed because of
alleged irregularities in the institutions.
The Nashik DCCB has been in the eye of a storm due to the precarious financial condition of the bank. During demonetisation, the bank was saddled with old notes worth a few hundred crore rupees, which had affected the business of the bank. The bank, which had exceeded its loan target for the year 2015-16, had failed to even disburse 50 per cent of its kharif target this year. Narendra Darade, the chairman of the bank, had resigned citing the government apathy towards the bank.
Officers of the cooperative department said the erosion of the net worth of the bank, along with the abnormally high increase in bad debts, were the main reasons for the dismissal of the board of directors. The net losses of the bank was more than Rs 60 crore. Also, the bank was found to have violated many of the rules set down by the Reserve Bank of India. In place of the board of directors, the divisional joint registrar has been appointed as the administrator of the bank.
The Nashik DCCB’s board of director was a mixed lot, with political leaders from across the spectrum. While Darade owed allegiance to the Shiv Sena, Jiva Pandu Gavit — the lone CPM MLA from Maharashtra — was also a director. Ironically, the dismissal of the board of directors came at a time when a BJP leader was made the chairman. Gavit, speaking about the dismissal, said the government should ensure the administrator ensures proper recovery of loans. “Note ban and bad recovery of loans were the main cause for the bank’s failing health and the administrator should make efforts to better it,” he said.
The second big blow for Nashik on Saturday was the dismissal of the board of director of the wholesale market. Nashik’s market is one of the major markets of the state, and its turnover is more than Rs 1,000 crore. This market was controlled by the NCP, while other apolitical directors were also on board. The main reasons for the dismissal of the board were alleged financial irregularities. Devidas Pingle, the former chairman of the market, was earlier arrested for alleged financial fraud. Pingle is a former MP from the district.
Jagdish Apshunde, another director on the now dismissed board, said he would seek remedial action against the order. “I surely will appeal against this,” he said.
These action come at a time when the ruling BJP is making an all-out effort to wrestle control of cooperative institutions from the Congress and the NCP.