Rakesh Chopra, one of the Indian Cooperative readers has updated on Veera Shaiva Cooperative Bank which we found useful for those affected by the massive fraud.
It is noteworthy that the Veera Shaiva Cooperative bank’s directors and some borrowers had allegedly conspired to loot the bank and the fraud involves an amount exceeding 50 core.
More than 15 thousand investors stand affected by it.
We present below Mr Chopra’s take on the issue-Editor
Update – Veera Shaiva Cooperative Bank – RBI has sent a reply to us that RBI has to do nothing and we should approach the bank and the liquidator. RBI has just forwarded our request for payment of our deposits to bank’s H.O. at Chembur for reply.
DICGC has also responded that depositors should approach the liquidator and the bank and DICGC cannot do anything till liquidator file the depositor’s claims officially.
The address of liquidator appointed is – Mr. GAWADE (Phone 27574965), District Deputy registrar (DDR), ‘M’ ward, II floor, Konkan Bhavan, CBD Belapur, Navi Mumbai.
The liquidator is supposed to settle the claims of each individual depositor by claiming money from DICGC. But it appears that Liquidator is not able to function as the bank’s Chairman and directors have filed cases with High Court of Mumbai and appeal with MOF, GOI,N.Delhi to get bank’s license back.
It is understood that next date of hearing in court is September 17, 2012. Depositors should approach the liquidator in Konkan bhavan or at Bank’s Chembur H.O. and press him to move ahead for preparing claims of each depositor on the basis of bank’s deposit ledgers and submit all the claims to DICGC immediately so that due diligence & verification process without any delay is initiated by DICGC (RBI Bhavan, II floor, Opposite Mumbai central railway station, Mumbai).
RBI cannot go scot free. RBI gave good audit ratings and allowed the bank to continue to function till 2011 – then what suddenly happened that it has to cancel the license of the bank and order liquidation. Let all depositors of the bank join together and file a rejoinder in High court and also make RBI as well as DICGC as parties to the case.
RBI as regulator need to be fully accountable to depositors but RBI has become high handed and with no accountability. This must be checked. Depositors must get their deposits paid immediately. Mr DK Mittal – Secy. DEA, MOF, GOI should also make a statement immediately and direct SBI to take over the bank and repay all the depositors in full immediately.
