HC notices to RBI, registrar on Suryapur depositors' plea

The Gujarat High Court has issued notices to the Reserve Bank of India, the state registrar of co-operatives, the Surat-based City Co-operative Bank and the administrator of Suryapur Co-operative Bank on a petition filed by an association of depositors, seeking inquiry into alleged maladministration and fraudulent transactions.

The notices were issued in view of a special civil application filed on April 28 by Suryapur Bank Agent Dianik Bachat Hitvardhak Samiti, which represents the recurring deposit agents and depositors of Suryapur Co-operative Bank, that has been out of business since September 2002.

The petition had sought a detailed probe into the various transactions of Suryapur Bank, which led to its closure.

The petition has also sought filing criminal complaints against those responsible for the fraudulent transactions.

Issuing notices to the respondents, the Gujarat High Court has scheduled the next hearing of the case for May 5.

The petition said authorities overseeing the functioning of the banks, like the Reserve Bank of India, the registrar of co-operatives and R R Waghasia, the bank's administrator, had not effectively monitored the bank's operations.

The City Co-operative Bank has been issued notice in view of a suspected hawala transaction of Rs 12 crore with Suryapur Co-operative Bank on August 30, 2002.

Around 8,600 small depositors of Suryapur Co-operative Bank, who had deposits of less than Rs one lakh, have lost around Rs 9.47 crore due to the bank's closure.

The agents and depositors of the bank have been agitating for over a month now, but the issue is yet to be resolved.

Senior counsel D D Vyas, appearing for the petitioners, submitted that despite the fact that irregularities had been brought to their notice, authorities like the RBI and the registrar had not monitored the functioning of the bank.

Earlier, on April 26, state agriculture and co-operatives minister Bhupendrasinh Chudasma had assured recurring agents of Suryapur Co-operative Bank that he would pay personal attention and try to resolve the issue of repayment of their money.

A delegation of agents, under the banner of Suryapur Bank Agent-Dainik Bachat Hitvardhak Samiti, held a meeting with the minister at the Circuit House in Surat to put forward their demands.

The demands include repayment of Rs 9.47 crore to the 8,600 small depositors, repayment of the amount which the bank had taken from them as security and taking necessary legal action against those involved in the bank scam.

Not too satisfied with the assurance by the minister, the depositors have decided to approach the High Court to get their issues resolved.

The Suryapur bank depositors had demanded a special package to be announced for them, but the minister had ruled out the possibility, stating that this would then have to be extended to other banks as well and it would not be a viable option.

Meanwhile, the Detection of Crime Branch, which is investigating the Rs 44 crore Suryapur Co-operative Bank scam, has received a setback of sorts, when the forensic science laboratory (FSL) opined that the signatures on loan papers of Mukesh Desai, the prime accused in the bank scam, do not match his specimen signatures.

Desai has been accused of using his contacts with the bank to secure loans for his friends and relatives and then defaulting on the loan amount.

However, police still maintain that the case against the accused is strong.