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Special committee to decide on government payment to MSC bank to meet today

The panel would examine the issue of payment of guarantee towards the bank in lieu of loans it had given to cooperative institutions

Written by Parthasarathi Biswas | Pune |
Updated: August 9, 2021 8:16:39 pm
demonetisation, Cooperative Bank, Shiv Sena, RBI, Uddhav Thackeray, news, latest news, India news, national newsMSC Bank finances cooperative institutions like sugar mills and spinning mills on the basis of guarantees from the government.(File Photo)

The first meeting of the special committee constituted to determine the amount payable to the Maharashtra State Cooperative (MSC) Bank in way of government guarantee will be held in Mumbai on Tuesday.

The committee headed by Rajgopal Deora, principal secretary of finance, is expected to submit its report to the government in the next three months.

Based on guarantees from the government, the MSC bank finances cooperative institutions like sugar mills, spinning mills etc. These institutions must repay their loans within a stipulated time failing which the bank has power to revoke the guarantee.

The state government paid the bank Rs 1,000 crore in 2019 as the latter had revoked guarantees towards cooperative institutions.

Besides Deora, the committee consists of Anil Kawade, commissioner cooperation, Shekhar Gaikwad, sugar commissioner, Vidyadhar Anaskar, chairman of the MSC bank, AR Deshmukh, managing director of the MSC bank and Mangesh Titkare joint director sugar(finance).

The official notification issued by the government said that the committee would examine the issue of payment of guarantee towards the bank against the loans it had forwarded to the cooperative institutions. Another important issue, which the committee will examine is the payment due to the bank for the loans it forwarded to the Nanded and Osmanabad District Cooperative Banks.

MSC bank was in controversy after adverse remarks were passed by the Bombay High Court over the sale of 41 loss-making cooperative sugar mills.

Deputy chief minister Ajit Pawar and a host of other senior leaders were pulled up for their alleged role in the matter. Enforcement Directorate is also investigating the matter.

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