HC orders fresh inquiry into expenses of 14 bank directors

The Bombay High Court has ordered a fresh inquiry into the case against 14 directors of Yavatmal District Central Co-operative (YDCC) Bank who have allegedly spent over Rs 60 lakh from the bank's coffers to fight the legal cases of private nature against them.
Dismissing the appeal filed by these directors of YDCC Bank on the order passed against them by Maharashtra Minister Chandrakant Patil, Justice P B Warale of Bombay High Court, Nagpur bench, yesterday ordered the Divisional Joint Registrar of Amravati to conduct a fresh probe into the matter.
The court also asked the Joint Registrar to submit a report in the case in two weeks time.

A complaint in this regard had been filed by Sadashiv Mahajan from Ralegaon in the district.
In his complaint, Mahajan had alleged that the 14 Board directors spent over Rs 60 lakh from the bank's coffers in the last four years to defend the cases pending before various authorities and courts, including the Supreme Court, despite these cases being of private nature.
"These directors had been nominated to the bank eight years back through 'Seva Sahakari Sanstha' (co-operative societies) in the district, although these societies were actually YDCC Bank defaulters," Mahajan alleged.

Mahajan had approached the Divisional Joint Registrar of Amravati and prayed for the disqualification and removal of these 14 directors from the bank's Board.

The Joint Registrar, after hearing the parties, ordered for their disqualification. However, the directors had challenged the order in the Bombay High Court and later in the Supreme Court.
Mahajan said he had also approached the state Co-operation Ministry and the present state Co-operation Minister Chandrakant Patil ordered an inquiry into their expenses.
However, the directors also challenged the Minister's order in the HC.
But Justice Warale dismissed their appeal and odered a fresh inquiry into the expenses.