Asodia appointed Diamond Jubilee Bank liquidator

Close on the heels of revoking the licence of the Surat-based Diamond Jubilee Co-operative Bank, Bharuch district co-operatives registrar R M Asodia has been appointed the liquidator of the bank. The Reserve Bank of India had revoked the licence of the bank on June 19.

Asodia had been appointed administrator of Diamond Jubilee Bank a couple of weeks back after B C Patel, the then administrator, was hospitalised.

Asodia's appointment as Diamond Bank liquidator has been made by Gujarat registrar (co-operatives) B K Gupta.

Asodia will take charge as the bank's liquidator on Monday and look after recovery of loans and payment to depositors and creditors. With the appointment of liquidator, there appears to be a renewed hope among depositors that they will get back their deposits shortly.

It is learnt that the state registrar of co-operatives has assured the depositors that they will get back their monies, including the insured amount of their deposits shortly.

Around 85,000 people have deposits worth around Rs 108 crore in the bank. About 70 per cent of these depositors have deposits of under Rs one lakh and their deposits are insured by Deposit Insurance and Credit Guarantee Corporation (DICGC).

Earlier in March, the Reserve bank of India had issued a notice to the bank as to why it should not be closed down. Diamond Bank filed its reply on March 30, but the apex bank found the reply unsatisfactory. This led to termination of the bank's licence.

Diamond Jubilee Co-operative Bank went bust on August 29, 2002, and was suspended from clearing house operations the following day.

The employees of Diamond Bank, who were retrenched in February earlier this year, too are pleased with the RBI move.

Police complaints have been registered against several defaulters, including a senior BJP leader from south Gujarat.