Diamond Bank wind-up opposed

The Gujarat government's move to liquidate the Diamond Jubilee Co-operative Bank Ltd which collapsed after senior BJP leader C R Patil allegedly turned defaulter in August last year, has faced a strong protest by the depositors and shareholders.

The depositors and shareholder, under the banner of Hitvardhak Samiti (Self-interest protection committee) has demanded that instead of liquidating the bank, the government should arrange for the immediate disposal of the immovable property surrendered by Patil to the bank.

The samiti members have also approached the Gujarat High Court seeking immediate sale of the property surrendered by Patil to the party whose tender has been accepted by the bank authorities.

President of the samiti Pranjivan Bhagat said the Gujarat government's move to liquidate the bank did not have any logic and should be opposed.

"I fail to understand why they want to liquidate the bank," Bhagat said. He said C R Patil had surrendered property worth Rs 48 crore. The bank had reserves in the range of Rs 20 crore to Rs 30 crore.

"Where does the question of liquidating the bank arise when it has Rs 80 crore on hand," he asked.

Referring to the proposal of Sandesh newspaper which had evinced interest in purchasing the property belonging to Patil worth Rs 48 crore, Bhagat said revenue department procedures which were to be completed for the formalisation of the sale were taking undue time. These procedures should be expedited and thousands of poor and middle-class depositors should get back their money.

The samiti members have also castigated the alleged politicisation of the entire episode.