3 More Members On Mmcb Board

The Central Registrar of Cooperative Societies (RCS) has appointed three more members on the recently constituted governing board of administrators for the tainted Madhavpura Mercantile Cooperative Bank (MMCB) under section 48 of the Multi-State Cooperative Societies Act, 1984.

These three new members include the Ahmedabad District Cooperative Bank chairman Amit Shah, Gujarat Urban Cooperative Banks Federation vice president Natwarlal R Patel and Rajkot-based Vijay Cooperative Bank chairman Jyotindra Mehta.

With these new appointments, the number of members on the MMCB governing board presently stands at eight. The Central RCS had inducted the first five members on the then newly-constituted MMCB board in the last week of November.

Disclosing that four more members are likely to be inducted on the board very soon, sources said they would include the Gujarat registrar of cooperative societies R M Joshi, one nominee of the Reserve Bank of India and one member each nominated by ADCB and GSCB.

These two apex banks have committed a contribution of more than Rs 50 crore towards the Rs 800-crore MMCB bailout package currently being mobilised from various cooperative banks based in Gujarat.

Sources said the next board meeting of MMCB has tentatively been fixed for December 10. A major point on the agenda of this meeting would be with regard to getting the outstanding insurance claim amount released from the Deposit Insurance & Credit Guarantee Corporation (DICGC), they said.

It may be recalled that DICGC had in the second fortnight of September released a major portion of the Rs 461.30 crore insurance claim submitted by MMCB for repayment to its depositors and account holders. The balance outstanding amount, which was unspecified, has still not been received from DICGC.