Co-op depositors meet RBI officials for dues

The All Gujarat Co-operative Banks Depositors and Account Holders Association (AGCBDAHA) on Wednesday made a representation to the Reserve Bank of India (RBI) about non-payment of insured depositors of co-operative banks in Gujarat.

The delegation was led by Prakash Gurjar, president of the association.

"We have requested the RBI to take necessary action and to help lakhs of depositors to get their money back from the co-operative banks which went bust," said Gurjar.

Depositors of General Co-operative Bank, Visnagar Nagrik Bank and Charottar Co-operative Banks are awaiting for the DICGA to clear there claims.

DICGA is supposed to clear a claim within 60 days of its submission.

The depositors of General Co-operative Bank had submitted their claims on August 29, 2003, while the bank was liquidated on July 2, 2003.

Visnagar Nagrik Bank was liquidated on July 11, 2003, and the claims were submitted to the authorities more than five months back.

Once the Lok Sabha elections are declared, it disbursement of deposits will get delayed further, the association feels.

Meanwhile, DICGA has brought in effect a resolution under which all claims have to be approved and certified by chartered accountants.

"We feel that the new resolution should be made effective from December 12, 2003, the date on which it was passed." said Gurjar.

The General Co-operative Bank, Visnagar Nagrik Bank and Charottar Co-operative Bank have failed long time back and their claims should not be required to be certified by the chartered accountants as per the new resolution of the DICGA, he said.

According to the association, DICGA may go for conversant audit and make their affair remain present while disbursement of the insured money of the depositors.

"If RBI does not take any action within a time frame, we will be forced to approach the high court," said Gurjar.