Depositors seek action against Madhavpura directors

Depositors seek action against Madhavpura directors
ENS ECONOMIC BUREAU

MUMBAI, APRIL 2: The beleagured depositors of the failed Madhavpura Merchantile Co-op Bank have demanded immediate arrest of the bank directors and attach all properties of the bank's directors and their relatives. The account holders, who met under the aegis of Federation of Association of Maharashtra (FAM) on Saturday, also discussed various options to get back their deposits.

Madhavpura Bank, which has been in news for all the wrong reasons, has imposed minimum cash withdrawals limits. "I had deposited Rs 50,000 with the bank for my daughter's marriage, but the whole money has become doubtful," says Satish Kelkar, a retired government employee.

The accountholders formed a joined action committee with Arun K Doshi, joint secretary of FAM as the convenor and Manushai D Shah, as joint convenor.

The small depositors expressed deep shock over the turn of events as they were uncertain whether their life savings will be realised. They urged the regulators -- who failed to take timely action -- should take stern action against the corrupt directors who were hand in glove with the high banking officials and unscrupulous and greedy elements in the stock market.

Madhavpura pay-order fiasco has shaken the whole financial activity of the country with many small investors bearing the brunt. The committee has held the apex bank responsible for the Madhavpura fiasco and blamed the regulator for not efficiently monitoring the activities of the co-op bank.

"Where were the much-touted watchdogs of the financial sector like RBI and Sebi when the Madhavpura directors were issuing pay-orders of astronomical amounts to the stock brokers? Aren't they answerable to us?" questioned an aggrieved depositor.

Madhavpura Bank is one of the casualties of the stock market scam which has engulfed a host of public sector and co-operative banks. According to an RBI estimate, the scam has made Indian banks poorer by at least Rs 1,200 crore which is 300 crore more than CBI's estimate of Rs 800 crore.