3 Vid DCC banks urge HC to direct RBI to treat them in parity with 16 banks of UP

3 Vid DCC banks urge HC to direct RBI to treat them in parity with 16 banks of UP

THREE unlicensed district central co-operative banks from Nagpur, Wardha and Buldana in Vidarbha have urged through their second rejoinders that their writ petitions be disposed of by the High Court here, with direction to the Reserve Bank of India ( RBI ) to withdraw its orders of rejecting these banks' applications for grant of license to them to enable them to revive and survive in the larger interests of the depositors and general public of the area.

A division bench consisting of Justice Bhushan Gavai and Justice V M Deshpande, at the High Court have posted these petitions for further hearing on September 15 next.

Expressing resentment about these banks facing discrimination and being not treated in parity with oilier unliceased District Central Cooperative Banks in the country -16 from Uttar Pradesh. 3 from Jammu and Kashmir and 3 other Banks in Maharashtra have been named and included for revival out of all the 26unlieenseddis!riclcentral co-operative banks in the country, these hanks have pointed out that it is beyond them as to why they have not been included in the revival scheme submitted to the Lucknow Bench of the Allahabad High Court by the Union of India. Through their second re-joinders these hanks have informed the Court that 3 banks in Maharashtra - one at Dhule and Nandurbar, one at Osmanabad and one at Jalna have been named and recommended for additional mobilisation to achieve required CRAR.

These banks have been granted additional funds and these banks remain duly licensed at present and the petitioner-banks have been left in die lurch to lick their own wounds.

These Banks have asserted that this contention of die Reserve Bank is absolutely incorrect and based on incorrect material that even with infusion of funds, these hanks will not be able to recover.

The Reserve Bank did not inform the meeting of stake holders held on July 14 last that order of stay granted by the High Court here was operating in favour of diese Banks on that day.

Similarly, the RBI did not inform the High Court here regarding pendency of die petitions by similarly circumstanced banks before the Lucknow Bench of the Allahabad High Court.

Further, the condition of these Banks is much better than those in Uttar Pradesh.

Adv Mukesh Samanh appeared for the petitioner Banks. Adv S N Kumar (RBI), senior counsel Sunil Manohar and GP Bharati Dangre (State Government) represented the respondents.

Posted in: News 2014