One of our readers Rakesh Chopra has commented latest updates on Veerashaiva Bank which we are reproducing verbatim for readers’ benefit-Editor
Mr. Gadade – CEO of the bank – whom I talked today on phone (022 25290377 – any customer can call him and discuss), informed that Bank’s statutory audit for year ended March 2013 has been over and now RBI (DICGC) has appointed special auditors to verify each account of the bank and these auditors have started working – they will verify each depositor’s deposits and eligibility etc. for claim and will send their report to DICGC by end of this month.
Then only DICGC will look into paying depositor’s claims through the official liquidator (Dy. Registrar, Cooperative depat, Konkan Bhavan, CBD Belapur) – who is given responsibility for handling bank’s liquidation and paying the depositors their deposit claims.
The finance ministry has finally declined appeal of bank’s directors to return and re-validate the banking license. One former chairman of the bank has filed a case in High Court of Mumbai against the RBI and State Govt. for wrongly cancelling the bank’s license and asking for relief from High court to quash RBI’s action and revalidate the bank’s banking license. The next date of hearing is September 17, 2013.
RBI as usual is not doing anything else to protect depositors or staff interests. When I asked the CEO if the bank has requested RBI to order some nationalize bank to merge this bank with itself to protect depositors money and staff interests – he said that RBI asked him back to convince some nationalized bank and bring the interested party to RBI with proposal for merger then only RBI will look into the same. This is discriminatory as in case of Global trust bank’s case RBI suo moto ordered merger with Oriental bank to protect depositors and staff – then why not here.
I appeal that Some good depositor who is advocate also – such as Adv. Dinesh Gupta and his friends – also should file a writ of MANDAMUS in High Court requesting High Court to direct RBI to announce a merger scheme suo moto as done in case of Global trust bank.
Bank’s CEO Mr. Gadade further told me that he has met Executives of many nationalized banks in Mumbai and have requested them to get Veerashaiva bank merged but till now no one has evinced any interest.
Friends, I have myself written directly to new RBI governor and Chief Minister Maharashtra – some days ago – requesting their special kind intervention and ordering the SBI, Bank of Baroda, bank of India or Bank of Maharashtra etc. – any big nationalized bank to merge the Veerashaiva bank with itself – I suggested that the scheme may be just like Global trust bank merger with Oriental bank – where all depositors got their full deposits back with full interest and all staff also got their job continued and protected as big bank’s need new branches and trained staff also.
I further submitted that when such nationalized bank will merge Veerashaiva bank – all depositors of Veershaiva bank are also likely to continue their deposits with merged bank and there may be no demand of paying back all deposits back immediately – this will save DICGC also from paying any claims.
I think this will be a win win situation. Let us see what they do. I think all depositors should campaign on all social media regularly about this.
I also request all stakeholders to write to RBI and Chief Minister and CJ, High Court on similar lines. I hope that one of them at least will definitely look into if we all represent to them collectively and forcefully.
Further, Customers may be receiving calls from Veershaiva bank to provide PAN card copy and Address proof copy etc. to comply with KYC norms as auditors and RBI inspectors are pressing for them while finalizing their reports to RBI. I suggest that all customers should provide the same to the bank at the earliest by personally visiting their branches – there they can take latest update also.
I have also come to know that bank is sending notices to locker key holders to pay upto date locker rent otherwise the same shall be deducted from their deposit claims as and when finalized by RBI. Many customers informed me ( as well as to Bank management )that they have come to the bank in year 2011 to return the locker keys and fully surrender the locker legally when at the request of bank staff they emptied their lockers but that time bank manager and staff did not take back the keys saying the customers should keep it with them as there are no instructions from their head office to take locker keys back and get lockers fully surrendered as the bank is likely to get it’s operative license back.
Many customers also told me that at that time the bank manager told them that no locker rent shall be payable for the period in which bank will not be providing them locker operations services. But now bank has sent notices asking for recovery of unpaid rent from locker key holders.
I suggest the locker key holders – to consult their lawyers (Adv. Dinesh Gupta and his advocate friends can also guide on this forum itself) and take advice and reply suitably to the bank at the earliest.
In my view, as the bank has been unable to provide locker operation services and have not provided any such services – it has no right to ask rent for that service as there is clear deficiency in service rather there is no service (and in fact bank should be liable to compensate customers adequately for not providing the regular contracted services and if bank management has clean hands and wants to claim any compensation back – let it claim from RBI which stopped it from serving customers).
This is well established law in various judgments of national level consumer courts that if there is no service available – no rent and charges are payable rather consumer is to be compensated.
Good Luck. Best wishes
Rakesh Chopra
