Maharashtra government will expedite probes into co-op banks' losses, penalise guilty: Chandrakant Patil

Q) What was the government doing when these banks incurred losses to the tune of hundreds of crores?
A) In the case of the Nagpur district cooperative bank inquiry, even after high court orders and a subsequent probe, the former minister for cooperation Harshawardhan Patil rejected the report regarding the bank. Now, the government will expedite inquiries in due course of time. Recent there was a probe on the Kolhapur district cooperative bank, after which 40 of it directors were served notices. If they don't repay the pending amount in 15 days, their properties will be seized. These people will not be allowed to contest elections for the next five years.

Q) What about the Maharashtra State Cooperative Bank, which incurred over Rs 1,500 crore in losses when the administrators were appointed?
A) The apex bank has already been served with notices under relevant sections of the Cooperative Act and subsequent actions will follow. After the inquiry, responsibility will be fixed and action will be taken for recovery in accordance with the inquiry report.

Q) Can just inquiries help these banks improve their functioning?
A) Once the pending inquiries are over, the way out is financial discipline. The government will try to make these banks more relevant for farmers by enabling better reach. It was necessary to do away with nepotism and ensure financial discipline. For example, no loans without proper mortgage and documentation, which will ultimately lead to efficient banking.