Infamous for Ketan Parekh scam and several other crisis plaguing it, Madhavpura Mercantile Cooperative Bank (MMCB) has got yet another lease of life. Regulator of banks, Reserve Bank of India (RBI) has reappointed the same board at the bank to be chaired by Radha Singh, retired IAS officer and ex-secretary to government of India in department of Agriculture and Cooperation. The board received an indefinite extension from RBI On Tuesday, the board has got indefinite extension from RBI with a motive of not leaving culprits including Ketan Parekh, free. But simultaneously, RBI has restricted the bank by imposing Article 35 A on MMCB. By putting Article 35 A on bank, MMCB can not accept new deposits as well as the account holders can not withdraw more than Rs1,000 in six months. Hardly 100 people have invested Rs60 lakh in MMCB in last 10 years, on whom the restriction is imposed. Rest, the Article 35 A will not be barrier to bank either for revival or for reconstruction. But by getting extension to board of MMCB, the hopes of investors getting their money back is alive again. As many as 10,400 account holders have been waiting for their Rs100 crore for past 10 years. "It is good news for investors that they can still get their money back. RBI has reappointed the same board and now the co-operative bank can once again put pressure on Ketan Parekh for recovery," said Jyotindra Mehta, chairman of Gujarat Urban Cooperative Banks Federation (GUCBF). So far, Ketan Parekh has already paid around Rs400 crore in installments in last three years but the remaining amount of around Rs800 crore is yet to be recovered. In the Ketan Parekh scam, MMCB is supposed to recover around Rs1,200 crore which includes interest. Bank is yet to pay around Rs100 crore to around 10,400 account holders in Gujarat.
DNA
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