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This is an archive article published on July 8, 1998

State Government to file cases in co-operative bank scam

GANDHINAGAR, July 7: The government has begun registering cases in courts and police stations against office-bearers and officials of co-ope...

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GANDHINAGAR, July 7: The government has begun registering cases in courts and police stations against office-bearers and officials of co-operative banks for illegally depositing over Rs 34.86 crore in the Ahmedabad Urban Co-operative Bank.

To a query by BJP member Narayan Patel in the House on Tuesday, Minister of State for Co-operation Ramanlal Vora said the government would act against anyone involved in “ banking scam”.

The minister said former Congress MLA Surendra Rajput, earlier the chairman of the Ahmedabad Urban Co-operative Bank, had himself withdrawn loan of Rs 3.30 crore from the bank. The entire board of directors of the bank had been dissolved after the “scam” came to light, and an administrator had been appointed to the bank. He said the previous RJP government had removed the administrator on political considerations but an administrator was appointed again following a directive from the Reserve Bank of India. The present government proposes to formulate foolproof guidelines to prevent such scams in future.

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He said 33 co-operative banks and many individual depositors from the state had deposited over Rs 34.86 crore in the Ahmedabad Urban Co-operative Bank, out of which 12 institutions had got back their deposits worth over Rs 13.69 crore.

Among those invested in the Ahmedabad Urban Co-operative Bank without permission of the government were the Uma Co-operatove Bank Ltd, Vadodara, The Rajkot People’s Co-operative Bank, the Anyonya Sahakari Mandali Co-operative Bank, Vadodara, the Alvi Co-operative Bank, the Anand People’s Co-operative Bank, the Kamdar Co-operative Bank, Bhavnagar, the Vardhman Co-operative Bank, Vadodara.

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