Page 20 - Banking Finance October 2019

CO-OPERATIVE BANK NEWS

EOW to appoint forensic Goa CM holds directors of Mapusa, Madgau co-op
auditors in Mharashtra banks for crisis
State Co-op bank scam Goa Chief Minister Pramod Sawant has said that the chairmen and directors of
the Mapusa and Madgaum urban cooperative
Two officials of Maharashtra State banks were responsible for the banks going into
Coop- distress. He said that the government has
erative started talks with other banks to help pull these
Bank banks out of their precarious financial situation.
have
been However, with the RBI imposing sanctions on
roped in the Punjab and Maharashtra cooperative bank
by EOW (PMC), Sawant ruled out a merger with it. Speaking to media persons, Sawant
for a 'wider probe' into the alleged said that the cooperative banks had gone into distress because the directors
Rs 25,000-crore embezzlement “gave out loans to irresponsible customers” and also because of the kind of fa-
scam, and will appoint forensic au- cilities provided to their employees.
ditors to analyse the loans granted “We can say it is a misuse of funds, and that is the reason the chairmen and
and establish the money trail. directors of bank are responsible for this mess. The state government is not

According to a source, the EOW is responsible,” Sawant said. He also said that the cooperative act would be
still collecting evidence, and is yet to amended so that the government recovery officer could be tasked with recov-
question the suspects. In 2011, a ering the coorporative bank dues.
Nabard audit report had found
breach of banking laws and RBI Vigilance cops raid Bolangir District Central Co-op Bank
guidelines by the bank directors who A team of Vigilance officers have recently raided the houses and office of Ashok
had distributed loans to their sugar Kumar Mohapatra, the Manager
loans, spinning mills and other units of Bolangir District Central Coop-
between 2005 and 2010 and de- erative (BDCC) Bank, on charges of
faulted on repayment and recovery. accumulating properties dispro-

In 2012, activist Surinder Arora filed portionate to his known sources of
a PIL in the Bombay HC and sought income.
direction to file an FIR against the Acting on a search warrant issued
then directors, chairman, MDs, by the Court of Special Judge Vigi-
CEOs, managing staff in-charge, and
lance and on the directions of
the office-bearers of Sakhar Sambalpur SP (Vigilance), a team of anti-graft officials from six districts con-
Karkhanas, Soot Girni, and other ducted simultaneous searches at four places including Mohapatra’s office, his
processing units that got loans.
new residence at Dasmati Nagar, parental house at Malpada in Bolangir dis-
NCP's Ajit Pawar and former NCP trict.
netas Vijaysingh Mohite-Patil and The officials also conducted the raids on Mohapatra’s son-in-law’s house at
Anandrao Adsul were among the Bhawanipatna in Kalahandi district, said reports.
bank directors. In August, the HC
directed EOW to register an FIR. It “We are conducting searches at four places and the details of the assets un-
also mentioned then office-bearers earthed will be known after the raids are completely over,” said Bolangir Vigi-
of District Central Cooperative Bank lance DSP Dilip Kumar Kar.
and Pen Urban Cooperative Bank While refuting the charges, Mohapatra said, “I have been working in the bank
claiming they had disbursed loans
since the last 37 years and this is the only house I have built in my entire career.
fraudulently. The FIR does not men-
I had taken loan of Rs 50 lakh from State Bank of India and Rs 3.5 lakh from
tion any names.
Andhra Bank to build the house.”
20 | 2019 | OCTOBER | BANKING FINANCE