Panaji, Aug 23:A government bail-out package for one of Goa's richest co-op banks headed by former Union law minister Ramakant Khalap --- has shown up the slow decay within the co-op banking movement in the state and its intense politicisation.
On Monday, the entire board of directors of the Rs 250 cr multi-state Mapusa Urban Co-op Bank resigned and sought the appointment of an administrator to run the bank. The Reserve Bank of India has stopped the bank from lending or accepting deposits, after its non performing assets climbed to 76 % and losses to Rs 26 cr this year. Heavy lending to the real estate business, which has now slumped, put the thirty six year old bank in the red, leaving it with a cache of unrecovered loans and Rs 30-40 cr in currently unencashable real estate. BJP Chief Minister Manohar Parrikar announced his intention to "save" the bank, with its 25,000 depositors. But many see this as a precursor to the shifting political control of the ban, which was once the bulwark of the Maharashtrawadi Gomantak PArty. The political undercurrents of the situation is linked to the fortunes of the BJP in North Goa, and its tussle with Mr Khalap(now in the Congress), whom it has long been trying to oust from the bank's board. In an earlier attempt, a BJP campaign led to the withdrawal of Rs 28 cr by depositors in three days, says a former bank director. The state government points to hefty loans given to relatives of directors, improper sanctions, over valuation of securities and other malpractices. Opposition Congress leaders on Thursday said this was the case with most of the credit societies and co-op banks in the state, including those run by BJP politicians. "Why are you singling out one or two banks because they happen to be run by Congress leaders", asked leader of opposition Pratapsing Rane, after BJP members sought to highlight the financial affairs of another Congress -run co-operative. As elsewhere, most co-operatives are headed by aspiring politicians and MLAs, and incumbent goverments have tended to put auditors and the state registrar to settle political scores. In an unprecedented move, signalling a new era of vendetta politics, the BJP last year ousted ex-Congress MLA Somnath Zuwarkar from the Goa State co-operative bank, and had him arrested for malpractices.(ends)
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