Misappropriation case: Directors of cooperative bank asked to appear before officials

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Alibaug, May 20 (PTI) Nineteen directors of the Panvel-headquartered Karnala Nagari Sahakari Bank have been directed to appear before a senior official by the Maharashtra Cooperatives Department in connection with the Rs 529-crore misappropriation case, as per a public notice.

Peasants and Workers Party's Vivek Patil, a former Member of Legislative Assembly who is the founder and chairman of the lender, and his son Abhijeet, are among the directors of the bank who have been asked to be present at the office of deputy registrar of co-operatives, Thane, on June 2, the notice stated.

The directors will be asked to explain their conduct regarding the misappropriation, it was stated.

It can be noted that a case has been filed before the Panvel police after the misappropriation came to light against 76 people, including Patil. The bank, which has 17 branches, was found to have routed depositors' money to trusts controlled by Patil, as per reports.

The public notice issued by the cooperatives department fixes liabilities ranging from Rs 16 crore to Rs 29 crore on each of the directors.

Bogus cases of loan distribution and financial mismanagement has brought the bank to the brink, which compounded as its 40,000 depositors made a beeline for their money. In June 2020, the RBI had placed the bank under directions, limiting the deposit withdrawals to Rs 500.

According to the notice, in December 2019, the district auditor of Raigad through an audit report disclosed the financial difficulties faced by the bank.

The Reserve Bank submitted a report regarding the misappropriation and a criminal case has been registered at Panvel Police station. PTI COR AA ARU ARU