Diamond Co-op Bank issues pink slips to 65

The beleaguered Diamond Jubilee Co-operative Bank, which went bust in September 2002, has on Saturday handed over pink slips to 65 of its employees.

Last year, the bank had removed 40 employees from its payrolls, which left its staff strength at 138. Now, with 65 more leaving the number is down to 73.

After the collapse of the bank, employees used to get 60 per cent of their monthly salaries. But those who received pink slips are now demanding that all their legal dues should be paid.

"The bank should sell off its prime property and repay our dues," an employee said on conditions of anonymity.

The bank, which is the oldest and biggest co-operative in south Gujarat, went into liquidity crisis two years ago when senior BJP leader, C R Patil, had failed to pay his loan installments.

Patil took a loan of Rs 46 crore in two installments. This was in violation of the RBI guidelines, which restrict a co-operative bank to issue loans up to a maximum of Rs 10 crore only. Patil, who has to repay Rs 55 crore to the bank.