The Maharashtra government has issued an ordinance barring directors of mismanaged cooperative banks from contesting bank elections for two consecutive terms, according to a report in PTI.
The Cabinet had approved the ordinance to amend the Maharashtra Cooperative Societies Act, 1960, in this regard.
It was issued on Thursday following the governor’s nod, an official said.
The ordinance applies to all the banks whose board of directors has been dissolved as per Reserve Bank’s direction and which are facing inquiry for mismanagement of funds and illegal transactions.
The dismissed directors will be ineligible to contest the elections not just at the concerned bank but at any other bank in the state for two terms, amounting to ten years.
The decision by the BJP-led government is politically significant as a majority of these banks are controlled by Congress and NCP leaders.