Modi blames Congress for ills in Guajarat co-op banks

Money was disbursed to the depositors of Diamond Jubilee Cooperative Bank

Gujarat's chief minister Narendra Modi has equated the problems of the co-operative banking sector in the state to the killer earthquake of January 26, 2001, which claimed more than 20,000 lives.

"The earthquake in January 2001 caused unprecedented loss of life and property. I believe that the crisis in the co-operative banking sector of Gujarat, which affected lakhs of households and threatened to paralyse the state's economy, was an even bigger crisis," Modi said at a function organised to kickoff disbursal of money to the depositors of the now-liquidated Diamond Jubilee Cooperative Bank on Friday.

Further, he added that strict steps and unpopular decisions were taken to prevent the cooperative sector from collapsing like a pack of cards.

Attributing the collapse of banks to Congress leaders, he said that taking action was not easy, because any action against them would have been seen as political vendetta.

"However, we went ahead and took necessary steps against the wrongdoers, irrespective of their political colour. We are glad that our efforts have borne fruit and Gujarat has been able to ward off the crisis in the co-operative banking sector. Gujarat is the only state which has been able to accomplish this so far," he said, adding, "We will continue to take steps to further strengthen the sector and protect depositors' interests."

Earlier, as the chief minister arrived at the venue, Jitendra Panwala, president of Viklang Seva Samiti, created ruckus by shouting slogans, making indirect reference to the role played by BJP leader C R Patil in the collapse of Diamond Jubilee Co-operative Bank. Panwala was later evicted from the venue by the police.

Cheques totalling Rs 4.34 lakh, were handed over to 25 depositors of Diamond Jubilee Bank by the chief minister. Also present on the occasion were co-operative minister Bhupendrasinh Chudasma, water resources minister Narottam Patel, BJP MLAs Dhiru Gajera, Bhavna Chapatwala and Dhansukh Patel among others.

Approximately Rs 74.74 crore sanctioned by the Deposit Insurance & Credit Guarantee Corporation would be disbursed among the depositors of Diamond Jubilee Bank within the 90 days. The procedure to disburse the dues of the depositors of Suryapur Co-operative Bank and Vikas Cooperative Bank would also be started shortly.