Page 17 - Banking Finance May 2020
P. 17
CO-OPERATIVE BANK NEWS
ducted by the ACB Jammu on the alle- turn, details of Construction of the The press release issued by the RBI
gations that the Chairman of J&K Co- Board Resolutions, etc. states, “These banks have been fined
operative Bank Ltd, in connivance with because of non-compliance with RBI’s
the officials / beneficiary of a non-exis- During enquiry it also surfaced that guidelines regarding NPAs as on March
tent Co-operative House Building Soci- River Jhelum Cooperative House Build- 31, 2018. These banks were subse-
ety had sanctioned an amount of ing Society has not been even registered quently given time to explain their po-
Rs 223 crores fraudulently in favour of with Registrar Co-operative Societies sition, both in writing and orally. How-
the said non-existent Co-operative So- J&K. The Chairman of the so called River ever, the RBI is not satisfied with their
ciety under the name and style of a Jhelum Cooperative House Building So- explanation and has decided to impose
`River Jhelum Co-operative House ciety Ltd. Hilal Ahmad Mir by acting in monetary fine on them.” The fine has
Colony at Shivpora Srinagar' shown run league with Chairman of J&K Co-opera- been imposed for so-called irregularities
by accused Hilal Ahmad Mir, son of Kh tive Bank Srinagar and others had pre- in the financial year 2017-18.
Sana-ullah Mir of Magarmal Bagh pared a fake and fictitious Registration
Srinagar. Certificate in the name of Society and If the RBI can wait for two years to
managed the sanction of loan to the take action, it could have certainly
During PE, it was further revealed that amount of Rs 223 crores. waited for a few more months until
the so called Chairman of the said So- things returned to normalcy Vidyadhar
ciety had moved an application to Sec- State co-op banks fined Anaskar President of Maharashtra Ur-
retary Cooperatives, Administration ban Cooperative Banks Federation
Department of Co-operative Societies, for failing to report NPAs
where under he sought directions to RBI has imposed fines on four state RBI extends Rupee Co-op
the J&K Co-operative Bank Ltd for cooperative banks, including Saraswat
grant of financial assistance to the Cooperative Bank, the largest coopera- Bank licence by 3 months
tune of Rs 300.00 crores for taking over tive bank in the country. The bank has Rupee Co-op Bank, Pune has been
possession of 300 kanals of land located been fined Rs 30 lakh for failing to re- granted an extension for its banking
in the outskirts of Srinagar for con- port the correct figures of Income Rec- license by the Reserve Bank of India
struction of a Satellite Township. ognition and Asset Classification for (RB)I for further three months i.e. up
Non-Performing Assets (NPAs). to July 31, 2020. In a statement issued
The application was endorsed to Reg- by the bank, Sudhir Pandit, chairman,
istrar Cooperative Societies J&K for The other banks which have been fined board of administrators, said that the
taking up the matter with Jammu and are Thane-based TJSB Sahkari Bank bank has till date recovered Rs 258.11
Kashmir State Cooperative Bank. Ac- Ltd, Mumbai-based Bharat Cooperative crore and has registered an aggregate
cordingly, J&K Co-operative Bank Bank Ltd. and Ahmednagar-based profit of Rs 53.19 crore during the last
Srinagar sanctioned a loan to the tune Nagar Cooperative Bank Ltd. They four years.
of Rs 223 crores without adhering to have been fined Rs 45 lakh, Rs 60 lakh
any codal formalities, i.e obtaining the and Rs 40 lakh, respectively. However, The administrator of Rupee Bank said
details of the Society Viz. the cooperative bank sector in the that all efforts were being made to
state is crying foul over the RBI’s ac- safeguard the interests of its deposi-
Balance Sheet, Profit and loss Account tion and says it shows the central tors and the depositors are ready to
business, activities being done by the bank’s step-motherly treatment to- co-operate for any early resolution of
Society, PAN number , Income Tax re- wards cooperative banks. the bank.
BANKING FINANCE | MAY | 2020 | 17