<b>State to pull up MMCB directors

State to pull up MMCB directors Friday, June 22, 2001

AsianAge
Gandhinagar, June 21: The state government is making tangible efforts to revive the Madhavpura Mercantile Cooperative Bank from the morasses it has fallen. The government is gearing up efforts to take action against the directors of the bank responsible for the biggest banking scam in the state.

The state government through a notification has decided to cancel all transfers of property and assets entered into by directors of the Madhavpura Mercantile Cooperative Bank Ltd. after the scam surfaced on March 12.

A member of the MMCB revival committee who was present during discussions with union finance minister Yashwant Sinha said, “There is no reason to believe that the perpetrators of the MMCB scam will be allowed to breathe easy. All transfers of property since the State team
will help take care of the lacunas.

To a question on when the state government will amend the cooperative laws to ensure that lacunas in the act will be taken care of, he said cabinet sub committee headed by Mr Vaju Vala will present a report on the 45 provisions of the cooperative laws to be amended which will be tabled during the next Vidhan Sabha.

To a question on action against Ketan Parekh, Mr Vora said board of nominees will hold a court to ensure recovery of Rs 1,000 crores from the 19 companies who have been given loans by the MMCB directors.

It may be recalled that a delegation led by the chief minister that had gone to Delhi on Wednesday included finance minister Vaju Vala, minister of state for co-operation Ramanlal Vora, member of the MMCB revival committee Amit Shah and former health minister Ashok Bhatt.

Discussions were held in the presence of the Central registrar, RBI officials and Central government officials. Minister of state for cooperation Ramanlal Vora said the demands made from the Centre included a Rs 464-crore interest-free loan for a period of 10 years from the Depositors Insurance Corporation against the insurance cover of the state cooperative banks and a default guarantee against the monies pumped in by the members of the federation of the state cooperative banks to revive the MMCB.

Mr Vora said the Centre has instead agreed to give Rs 464 crores as a grant and has agreed on a 70 per cent default guarantee against monies pumped in by the cooperative banks with the state having to furbish the remaining 30 per cent guarantee.
News Source : The AsianAge Ahmedabad Edition [ The coolest Newspaper for city ]

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