Depositors to boycott polls in Gujarat

Depositors of bankrupt co-operative banks in the state has decided to boycott the upcoming Lok Sabha elections unless they get their money back from the banks.

Around Rs 2,500 crore worth deposits of around 11 lakh depositors are on stake in around 28 co-operative banks, which had gone bust in the last two years.

The General Co-operative Bank owes around Rs 125 crore to its depositors; Charotar Co-operative Bank around Rs 250 crore and Visnagar Co-operative Bank around Rs 550 crore.

Co-operative banks in Nadidad alone owe Rs 1,000 crore to one lakh depositors. These banks include Janta Co-operative Bank, Nadidad Mercantile Co-operative Bank, United Mercantile Co-operative Bank, Srinathji Co-operative Bank and Natpur Co-operative Bank among others.

"None of the bankrupt co-operative banks in Nadidad are willing to pay depositors stating that the issue is pending with the Reserve Bank of India (RBI) under Section 35 (A)," said Jitu Desai, vice-president, Nadidad Depositors' Association.

"The All Gujarat Co-operative Bank Depositors and Account Holders Association (AGCBDAHA) has made several representation to the state government, but no action has been taken yet and now we decide not to cast vote in the upcoming Lok Sabha elections," said Prakash Gurjar, president AGCBDAHA.

"AGCBDAHA even represented to the RBI to get the insured amount of up to Rs one lakh of the depositors but most of the depositors have not received any money from the bank," said Gurjar.