CAs named to certify Gujarat co-op depositors' claims

The Deposit Insurance Credit Guarantee Association (DICGA) of the Reserve Bank of India (RBI) has appointed chartered accountants to certify claims made by the co-operative banks that have gone bust, for payment of money insured with the DICGA.

This paves the way for depositors of the General Co-operative Bank, the Visnagar Nagarik Co-operative Bank and the Charottar Nagarik Co-operative bank to get back their money that was insured with the DICGA.

Representatives of the All Gujarat Co-operative Banks Depositors' and Account Holders' Association (AGCBDAHA) visited Mumbai on Thursday to make a representation in this regard.

Following the representation, Abbaji Amin Associates has been appointed by the authority to certify claims made by Genco Bank and Kanti N Patel and Associates has been appointed to certify claims of Visnagar bank.

"While Abbaji Amin Associates has been directed to certify Genco bank claims within a period of 20 days, Kanti Patel and Associates has been asked to certify claims of Visnagar bank within 25 days. We expect that in about a month from now, depositors of these two banks will get back at least the insured money," said Prakash Gurjar, president of the association.

As far as the insured money of Charottar Co-operative Bank is concerned, the claim has been made in December and with a 60 days' period provided for settling claims, depositors of this bank will also get their insured money by February or March, Gurjar said.

RBI regional director Vani Sharma could not be contacted for comments.

Lakhs of depositors of General Co-operative Bank (Genco), Visnagar Nagrik Co-operative Bank and Charottar Co-operative Bank have been waiting for their claims to be cleared and disbursed by the authorities afte the banks were liquidated.

The Reserve Bank of India wing is expected to clear the claims of the banks and make disbursements within 60 days, but it has been more than five months and still DICGA has not passed the claims as far as Genco and Visnagar banks are concerned, Gurjar said.

General Co-operative Bank was liquidated on July 2, 2003, and its claim was filed with the authorities on August 29, 2003.

Similarly, Visnagar Nagrik Bank was liquidated on July 11, 2003, and it is more than five months and the claims are not disbursed by the credit guarantee association.

Claims for Charottar co-operative bank to DICGA were made in December last.

Meanwhile, DICGA had brought in effect a new resolution, according to which the claims have to be approved and certified by chartered accountants.