Rs 752 cr of depositors' money stuck in 29 co-op banks in state

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Nagpur, Nov 23 (UNI) A total of Rs 752 crore of depositors' money was stuck in 29 co-operative banks in the state due to financial irregularities, Minister for Co-operation Patangrao Kadam told the Legislative Assembly today.

In a written reply to Mr Suryakant Dalvi (Shiv Sena) and several others, Mr Kadam said action had been initiated against these banks under sections 101 and 91 of the Maharashtra Co-operative Act.

An inquiry had been initiated against nine urban co-operative banks under section 83, he said.

Action had been initiated to fix financial responsibility on the directors of 14 co-operative banks under section 88 of the Act, Mr Kadam said. Besides, the board of directors of 19 banks had been dismissed and administrators appointed on those institutions, while criminal offences had been registered against the directors of six urban co-operative banks, he also said.

The government had initiated liquidation proceedings against 382 cooperative societies, including 109 milk co-operatives, in Sangli district of the state, Mr Kadam said in another written reply to Shivajirao Naik (Independent) and two others.

Liquidation proceedings had been initiated against these societies as the institutions had not functioned as per their objectives, their financial condition had deteriorated and the transactions had stopped, and similar other reasons, Mr Kadam said.

Liquidators had been appointed on these societies vide section 102 of the Maharashtra Co-operative Act, Mr Kadam said, adding that action had been initiated to recover dues and dispose off the properties of these institutions to discharge their liabilities, vide section 105 of the act.

In case the liabilities could not be discharged by disposing off the property of the societies, the property of the directors would be seized, he also said.

UNI

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