Nagpur bench of Bombay High Court has continued the orders barring directors of the now-defunct Samata Cooperative Bank from selling their assets. The depositors’ association of the ailing bank had filed a petition against the directors. The case has now been admitted and will be heard further, says a report from Times of India.
An inquiry officer was appointed under the section 88 of Maharashtra State Cooperative Societies Act who imposed a penalty on the chairman Milind Chimurkar and 17 other directors in the wake of the bank going into a crisis in 2005. The penalty could be recovered by selling their personal assets.
However, they filed an appeal at the minister’s office which is also an appellate authority in such matters. After sitting over the case for two years by ordering a stay on the original order, the minister finally upheld the appeal in 2013.
As the department did not file any further appeal against the minister’s order, the depositors’ association had no choice but to move the court.