Bhopal: Collectors given charge of cooperative banks

Bhopal (Madhya Pradesh): The department of cooperatives has issued an order for the district collectors to take over the management of the cooperative banks across the state, said an official from the department on Monday.

Gupta said that the collectors have been given the responsibility to improve the system of banks. They can execute other arrangements including recovery in a better way. Now the departmental officers will be able to give enough time for the court work, said Commissioner Cooperatives Sanjay Gupta.

The chief minister had asked the department to find a solution to the losses and increasing non-performing assets of the cooperative banks, he said.

The banks that have implemented the change include the cooperatives in Bhopal, Raisen, Guna, Mandsaur, Ujjain, Ratlam, Dewas, Shajapur, Khargone, Seoni, Narmadapuram, Shahdol, Vidisha, Rajgarh, Betul, Sagar, Damoh, Tikamgarh, Chhindwara, Narsinghpur, Balaghat, Mandla and Sidhi.

Gupta said that the final decision has not yet been taken on handing over the responsibility to the collectors in Indore, Morena, Khandwa and Jhabua. Additionally, the tenure of the board of directors of Chhatarpur cooperative bank is yet to finish, he added.

Recent Irregularities in Cooperative Banks

An irregularity of Rs 80 crore recently came to light in the Kolaras branch of Shivpuri Bank after an audit team was sent. The then Chief Executive Officer RBS Thakur has been sacked for irregular withdrawal of Rs 8.92 crore from Gwalior Bank. Misappropriation of Rs 1.5 crore by showing fake loans in the name of farmers in Thandla Committee of Jhabua Bank, Rs 4.5 crore in Chhatarpur Bank, Rs 3.55 crore in Sagar Bank, Rs 8.66 crore in Rajgarh Bank, Rs 1.94 crore in Chhindwara Bank, Rs 7.89 crore in Chanderi branch of Guna Bank and irregularities of more than Rs 79.39 lakh have come to the fore in the committee affiliated to Ujjain Bank.