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Co-op banks now in BJP vault

The BJP, for the first time since the inception of the state, has gained control of the Gujarat State Cooperative Bank Ltd.

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In a major political blow to the already weak Congress party in Gujarat, the BJP, for the first time since the inception of the state, has gained control of the Gujarat State Cooperative Bank Ltd (GSCBL). Ahead of the Lok Sabha polls, the control of this apex bank will give a significant boost to the BJP, enabling it to hold sway over large tracts of rural Gujarat, where farmers take loans from district coop banks.

Paradoxically, in spite of the Congress having 11 of its supporters as directors on the GSCBL against the BJP’s 10, state home minister Amit Shah’s protégé, Ajay Patel, was elected chairman with 14 votes because of cross-voting. In further humiliation, the Congress also lost the vice-chairman’s post as BJP MLA Sankar Chaudhary won with 13 votes in his favour.

The BJP had already wrested control of the Gujarat Urban Cooperative Banks’ Federation a few years back. Now, the Congress has completely lost its hold on the cooperative banking sector in the state.

The GSCBL oversees all the 18 district cooperative banks in the state. With BJP getting a majority in the GSCBL, it will be able to hold political sway over the 22 lakh members of the district cooperative banks.

The BJP had a fewer number of directors on the board of the GSCBL. In the latest poll, however, horse-trading and political pressure helped the saffron party, sources said.

Among the 21 directors of the banks, 11 directors were Congress supporters while 10 belonged to the BJP. 

Patel, the chairman of the Ahmedabad District Co-operative Bank Ltd, was elected chairman while Sankarbhai Chaudhary, the chairman of Banaskantha District Co-operative Bank Ltd and MLA from
Radhanpur was elected vice-chairman.

Patel defeated Amichand Patel, the chairman of Sabarkantha District Co-operative Bank Ltd by seven votes while Sankarbhai Chaudhary beat Brijrajsinh Jadeja of Jamnagar District Co-operative Bank Ltd by five votes.

According to sources, Arunsinh Rana of the Bharuch District Co-operative Bank and  Dilip Bhakt of Surat District Co-operative Bank Ltd are suspected to have voted in favour of the BJP. Sources said others who might have voted for the BJP are Jayantibhai Patel of Valsad Jilla Sahakari Bank Ltd, and Natvarlal Patel of the Gujarat State Co-operative Marketing Federation Ltd (Gujcomasol).

Congress leaders had anticipated cross-voting by its members.
Congress leader Narhari Amin said, “We had the information that the state government was trying to pressurise our members to vote in favour of BJP-supported candidates.” The former chairman of GSCB, Dhirubhai Chavda, said, “The members have ruled out the mandate given by the party and indulged in cross-voting. We have submitted a report to the Gujarat Pradesh Congress Committee.”

Sources said that Natvarlal Patel was in the race for the post of vice-president, but sensing humiliation, he withdrew at the last moment. The sources said it was possible that he had indulged in cross-voting. “Arunsinh Rana had indicated time and again that he would vote in favour of BJP-supported candidates,” a source said.
The Gujarat high court had disqualified Nanubhai Vaghani, the chairman of Bhavnagar District Co-operative Bank Ltd, as a voter.
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