Land development banks to be liquidated

The state cabinet on Tuesday gave its nod for liquidation of land development banks in the state. The decision will cost the government Rs200 crore towards compensating employees aged above 50 for their voluntary retirement scheme.

Chief minister Devendra Fadnavis informed media persons after the cabinet meeting that there was a report on land development banks during the previous government's rule, adding that his government has decided to accept this report and liquidate the land development bank.

Fadnavis informed that employees aged above 50 would be provided with compensation which is two-and-a-half times the salary they will earn till retirement, along with VRS benefits. These employees would also be absorbed in other government departments, he added, and while doing so the norms of educational qualifications would be made flexible for them.

Fadnavis said the properties in the form of buildings and land development banks would either be sold or re-used for some government purpose.

Meanwhile, NCP state unit president Sunil Tatkare has criticised the decision to liquidate land development banks. He said the banks have played a major role in the state's economy, especially rural economy, as well as in tackling the agrarian crisis.