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
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