Govt splits Mumbai Co-op Bank

Mumbai, May 7: In a move to gain control over the Congress-controlled cooperative sector, the Sena-BJP government today ordered split in ...

Mumbai, May 7: In a move to gain control over the Congress-controlled cooperative sector, the Sena-BJP government today ordered split in the Mumbai District Central Co-operative Bank, Asia’s largest cooperative bank – one for the Mumbai city and the other for the Mumbai suburban district.

“The Reserve Bank of India as well as the National Bank for Agriculture and Rural Development (NABARD) have cleared our proposal for the split. We have completed the formalities required for the purpose,” Cooperation Minister Diwakar Raote stated.

Raote, however, refused to disclose the submissions made by the Mumbai Bank before the RBI, NABARD and the state government. “It is a lengthy submission and as such it will not be possible for me to disclose the contents,” Raote said when repeatedly asked for its submissions.

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While the board of directors of the Mumbai Bank has been dissolved with immediate effect, the Deputy Registrar of Cooperative Societies (Mumbai), Sudhir Tungar, has been appointed as an Administrator-cum-President for the Mumbai city and Anil Chavan, also a Deputy Registrar of Cooperative Societies will head the bank for the Mumbai Suburban district, Raote added.

The minister said the Mumbai Bank was set up in 1974 for the entire district, despite the fact that a separate district central cooperative bank should have been set up for the suburban district.

In accordance with the provisions of the Cooperative Societies Act, the alliance government decided to split the bank on April 14, 1998. “There is absolutely no politics in it. We have followed the procedure laid down under the provisions of the Cooperative Societies Act. In fact, even the Bombay High Court has permitted the government to split the bank after following the due procedure of law,” Raote said.

Replying to a question, Raote said as per the directives of the high court, the actual process of division of the bank will start after two weeks. “Account holders and depositors will be at liberty to withdraw the amount from their accounts within two months,” he remarked.