MUMBAI, NOV 8: The Mangal Co-op Bank, Goregaon, has said that the amount of Rs 9.50 lakh paid in transaction for its Dahisar premises in 1991, which became subject of an inquiry by Registrar of Cooperatives, was part of the amount agreed to with the builder, Vishal Builders.A shareholder of the bank had sought action on the report of the cooperative department into the payment of the amount to three different parties instead of to the builder. The bank has said that when the premises were bought in 1988, the bank had agreed to the builder's terms that of the total consideration of Rs 17,74,250, Vishal Builders would reflect only Rs 10,44,250 in the written agreement, and the balance, Rs 7.30 lakh should be paid by the bank to Vishal's suppliers.The Bank also gave an overdraft facility of Rs 7.30 lakh to Vishal Builders, with the understanding that the amount, plus the interest, would be adjusted by the builder against payments to be made by the bank to the builder's suppliers. The bank and the builder then went to court since the builder allegedly did not hand over possession of the premises. In further negotiations out of this suit, the builder demanded that the amount of Rs 9.50 lakh be paid through his suppliers, and he would hand over the possession of the property.Accordingly, the bank had three accounts opened in the name of M/s Unique Fabricators, Shah Engineering and Abdullah Enterprises, and the amount, totalling Rs 9.50 lakh was deposited in the same. The three then transferred the amount in the overdraft account of the builder and the same was cleared.What the bank has not explained is how when only Rs 7.30 lakh was to be paid outside the written agreement, the bank ended up paying Rs 9.50 lakh, albeit under arm twisting by the builder.Meanwhile, the directors of the bank, and the shareholder, B N Agarwal, who has sought an investigation against the directors following the report of the Inquiry officer of the district deputy registrar (DDR), are trading charges against each other. While the bank has said that Agarwal was an accused in a case of forgery filed by the bank in January 1999, Agarwal maintains that it is a false case. The bank has alleged that Agarwal submitted forged documents in the process of his application for a loan of Rs three lakh from the bank. The Bombay High Court has also rejected his bail application in the case.Agarwal had lost the elections to the bank's board this year.The bank has also informed that the divisional joint registrar has stayed the action on the inquiry report of Shivaji Pahinkar, appointed by the DDR in 1995. Pahinkar had rejected the bank's contention that there was no intention to misuse the funds of the bank, since the amount of Rs 9.50 lakh was paid to Vishal Builders according to a settlement after the suit.
