Gujarat HC bench dismisses City Co-op depositors plea

A division bench of Gujarat High Court on Thursday dismissed the writ petition filed by City Co-operative Bank Depositors' Association, challenging the earlier HC order appointing an administrator.

According to legal experts, with the HC dismissing the writ petition, the way has been cleared for the state government to appoint a permanent administrator for the bank. The government can now also initiate criminal proceedings against the bank scamsters.

A public interest litigation (PIL) was filed in the Gujarat High Court by Suryapur Bank Agent Dainik Bachat Hitvardhak Samiti in April, seeking an inquiry into the alleged hawala transaction of Rs 12 crore between City Co-operative Bank and Suryapur Co-operative Bank.

In view of the PIL, Justice Jayant Patel, on August 11, superseded the Board of City Co-operative Bank and appointed District Registrar R R Waghasia as the bank administrator. Justice Patel directed Waghasia to conduct an inquiry into the said transaction and submit a report of the same before it within 15 days. Challenging Waghasia's appointment as the bank administrator, The City Bank Depositors Association and one of the bank directors had filed the writ petition in the HC.

The writ was filed on the ground that the earlier order was made by the Single Judge without hearing the director. The writ sought cancellation of Waghasia's appointment as the administrator and that the board of directors be allowed to function as earlier.

The bench, however, observed that under Article 226 of the Constitution, the applicant could file another writ, which would be heard by the Single Judge. It is worth mentioning here that the Co-operative Banking sector of Surat has received shock after shock in the last two to three months.