NCP MLA Demands Dissolution of Maharashtra State Transport Cooperative Bank Board

Nagpur, Dec 14 (PTI) NCP MLA Rohit Pawar on Thursday alleged serious financial mismanagement at the Maharashtra State Transport Cooperative Bank, and demanded that the cooperation department immediately dissolve its board of directors.
A 23-year-old man, who happens to be the brother-in-law of "somebody influential", has been made the bank's managing director, Pawar said, raising the issue in the Maharashtra legislative assembly here.
The bank is controlled by a panel led by union leader Gunratna Sadavarte. Shiv Sena (UBT) legislator Anil Parab had raised the issue in the legislative council two days ago, stating that Gunaratne's brother-in-law was appointed as managing director.

"The bank with deposits of Rs 2300 crore is facing a serious challenge of financial mismanagement. A 23-year-old young man, who is the brother-in-law of someone influential, was appointed as its managing director. This is against the Reserve Bank of India's rules," Pawar said during the question hour.
The new directors slashed the interest rate from 9 per cent to 7 per cent which led to withdrawal of deposits which is the hard-earned money of the employees of the state-run Maharashtra State Road Transport Corporation (MSRTC), he added.
The managing director should be removed and the board of directors should be dissolved before it is too late to save the bank from bankruptcy, the MLA who belongs to the NCP faction led by Sharad Pawar said.
Cooperation minister Dilip Walse Patil -- who belongs to the rival NCP faction led by deputy chief minister Ajit Pawar -- said in his reply that a committee has been formed by his department to probe the allegations of financial irregularities at the bank.
"The committee will give its report within two months and based on that further action will be taken," he said.
An agitated Pawar, however, said deposits of Rs 400-500 crore had been withdrawn due to the mismanagement.
The minister, who asked him to calm down several times, said it was not true, and deposits of only Rs 180 crore have been withdrawn so far.
Three months ago, a panel led by Sadavarte won the election for the board of directors.
As per a written reply submitted by the state government earlier, the board of directors slashed the interest rate on loans, but the RBI directed it to withdraw the decision.

Leader of Opposition Vijay Wadettiwar asked the government to speed up the inquiry and complete it within one month instead of two months.