When the scam surfaced, the then managing committee of Panchmahal was replaced by a nine-member panel headed by the registrar of co-operative banks. Other representatives of district co-operative banks and state co-operative banks were also included in the panel.
The panel was appointed to handle the administration of the bank and recover money from debtors.
J H Mehta, member of the panel, said farmers were not able to pay loans owing to bad rainfall for the last three years. He also held the previous managing committee responsible for the financial crisis at the bank.
