Allahabad High Court has, in its interim order, called for postponement of elections to the post of Directors on the board of Nafcub thus puncturing the steam that was building in full force in Urban Cooperative Banks.
The court passed this order on the appeal of urban cooperative bank members from Utter Pradesh who accused the Managing Director M r G Krishna and Chairman Mr S K Patil of making bogus members in large numbers at the time of election to retain the power.
It is a fact that 150 urban cooperative banks and equal number of credit societies has become the member of NAFCUB in last 4-5 months. According to Managing Director Mr Krishna the multi state cooperative societies act clearly stipulates that any bank or credit society can become member 30 days before the election by fulfilling criteria like submission of annual report and its bye-laws. But societies or bank less than one year old at nafcub cannot contest.
NAFCUB is the apex level promotional body of urban cooperative banks and credit societies in the country. The federation is registered under the Multi State Cooperative Societies Act with the Central Registrar of Cooperative Societies. Ninteen (19) directors will be elected. The entire country has been divided into 19 constituencies. State federations have 9 seats while urban cooperative banks have 7 seats. Credit societies have been accorded 2 seats. There is just one government nominee.
The fact remains that at the time of election there is scramble by banks and credit societies to join nafcub. When elections are not around nafcub has hard time requesting everybody to join it. But with the announcement of election date, a mad rush to join the nafcub begins. According to outgoing MD Mr Krishna whenever somebody fails to make it to the list he employs every means to delay the process. Watch these lines to know more about the reasons of postponement soon.
