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Bombay High Court issues notice to MLA Sunil Kedar in Rs 156 crore government securities scam

Sunday, 4 May 2014 - 12:42pm IST | Agency: PTI

The Nagpur bench of the Bombay High Court has issued notice to former Nagpur District Central Cooperative Bank (NDCCB) chairman and MLA Sunil Kedar and then general manager Ashok Choudhary on a plea by depositors seeking recovery of dues totalling Rs 156 crore from them. Kedar, a former Congress and currently Independent MLA, and Chaudhary are allegedly involved in infamous government securities (G-Secs) scam and are facing charges. 

A division bench of Justices Bhushan Gavai and Chandrakant Bhadang issued notice to Kedar and Chaudhary last week after a number of depositors knocked the doors of the court for recovery. The HC also sent notices to the respondents, including Secretary to Department of Cooperatives and Textiles, CID, Divisional Joint Registrar of Cooperative Society and incumbent NDCCB chairman Sharayu Taywade, asking them to reply before June 17.

According to Omprakash Kamdi and 14 other depositors who filed the PIL through counsel Shrirang Bhandarkar, NDCCB was the leading bank for providing loans to poor farmers, small businessmen and cooperative societies working in the field of agriculture. 

However, in 2001-02, the G-Secs scam rocked the bank during tenure of Kedar as chairman, they said. The bank then lodged an FIR with Ganeshpeth police station against Home Trade and Giltedge Management of Mumbai, Indrani Merchants and Century Dealers of Kolkata and Syndicate Management Services of Ahmedabad. 

The bank had purchased government securities worth Rs 125 crore through these companies acting as brokers, but they failed to purchase the securities and pass them on to the bank and also did not refund money, according to the PIL. 

The firms were booked under sections 406 (criminal breach of trust) and 420 (offences relating to cheating and dishonestly inducing delivery of property) of IPC, and special auditor (class-I) of cooperative society, Nagpur, Vishwanath Ajwar, was asked to probe the matter.

On April 29, 2002, he lodged an FIR against Kedar, Chaudhary and others after finding alleged irregularities.

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