MMCB: Govt bodies to get dues first

The future of the deposits of about 10,000 account-holders of scam-tainted Madhavpura Mercantile Cooperative Bank (MMCB) looks bleak. Institutional stakeholders like Deposit Insurance & Credit Guarantee Corporation and Bank of India may get priority for dues recovery. The RBI yesterday cancelled the banking licence of the bank, on the Rs 1,200-crore scam that had surfaced in March 2001, involving sharebroker Ketan Parekh and his associates. According to senior officials of MMCB, the bank has a total liability of Rs 1,459 crore — Rs 792 crore deposit liabilities and Rs 667 crore other liabilities.