Mumbai: The NCP-controlled Maharashtra State Cooperative Bank (MSCB) was operating without a licence. Nabard, the cooperative and rural banking regulator, has stated the point in a 169-page report, based on which the RBI dismissed the MSCB board of directors a week ago. While the NCP has cried foul, saying the decision was politically motivated, the Nabard report has revealed one skeleton after another in the MSCB closet. Nabard has observed that the MSCB board conducted its affairs against the interests of depositors, concealed non-performing assets, completely ignored the RBI’s statutory orders, sold the properties of borrowing units acquired under the Securitisation Act much below the reserve price, sanctioned non-agriculture loans without authorization from Nabard, waived huge interest amounts in violation of the Cooperative Societies Act and enhanced credit limits to units having negative net worth.
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