Liquidator Named For Laxmi Co-Op

The office of the Gujarat Registrar of Cooperative Societies (RCS) has appointed Ahmedabad District Cooperative Bank (ADCB) as the official liquidator of the crisis-hit Shree Laxmi Cooperative Bank Ltd (SLCB) under Sections 108 and 115 (A) of the Gujarat Cooperative Societies Act.

ADCB, the apex district cooperative bank of Ahmedabad, has a total amount of Rs 12.34 crore struck up in SLCB. This is in the form of cash credit of Rs 11.29 crore and overdraft of Rs 1.05 crore availed by the latter and it had remained unrecovered when SLCB abruptly announced indefinite closure of all its five branches on October 8.

The order signed by the Joint RCS (banking) Deepak P Joshi requires ADCB to immediately take charge of SLCB and initiate the liquidation proceedings as well as to ensure the completion of the winding up process within a maximum period of three years.

ADCB chairman Amit Shah said: "Based on the above order received from the Joint RCS, today I deputed ADCB manager Ramanbhai Patel as our bank's representative to take charge of SLCB in the morning itself. But as there was a demonstration of depositors outside the bank, Ramanbhai could take over charge only at 1.00 pm."

Asked about ADCB's immediate plans as the official liquidator, Amit Shah said the first priority would be to file the insurance claim before the Deposit Insurance and Credit Guarantee Corporation (DICGC), so that the latter releases the amount at the earliest and the 39,926 odd depositors of SLCB, having deposits below Rs 1 lakh, get back their deposits with interest.

SLCB has a total depositor base of 40,039, out of which 113 have deposits above Rs 1 lakh. As there is no default in the payment of insurance premium, the said 39,926 customers having deposits of below Rs 1 lakh, would get their deposits and interest back from the claim settled by DICGC.

"Our second priority is to initiate recovery proceedings and get back all the outstanding dues from the debtors and loanees of SLCB," Shah added.

Emphasising that ADCB in the capacity of the official liquidator would be ruthless with SLCB defaulters, he said, "If necessary we would take them to the court of law to ensure that they pay up the outstanding dues."