Agriculture minister Sharad Pawar, unlike his nephew and Maharashtra Deputy Chief Minister Ajit Pawar, is not in a haste to take a swipe at Congress over the supersession of the board of directors of Maharashtra State Co-operative (MSC) Bank. He goes by his own calculations and takes on his rivals in his own ways. But in a freewheeling chat with Sanjay Jog, the Nationalist Congress Party (NCP) chief could not hide his displeasure and said the state government should have acted responsibly. Edited excerpts:
What is your take on the supersession of the board of directors of MSC Bank on the advice of the Reserve Bank of India (RBI)?
The board of directors of the bank, which plays a crucial role in the state’s cooperation, agriculture and ultimately in the rural economy, has been superseded under Section 111 (A) of the Maharashtra State Cooperative Societies Act, 1960, and not under Section 11. This means the action has not been against charges of corruption or misappropriation of funds, but due to an increase in non-performing assets (NPA), which was due to lack of recovery of some loans guaranteed by the state government. There is no bar on disbursement during the administrator’s rule, which is a positive thing.
Had the state government released over Rs 1,600 crore for which it had provided guarantees, the bank’s NPA would not have risen. So far, the government has released Rs 270 crore, but it has to release the full amount, which will help bring down the NPA.
Did the government act in haste?
The board of directors has released loans on the government’s guarantee. The bank has been making efforts to recover these loans. Simultaneously, it has been pursuing the release of funds from the government. The bank took the state government to the Bombay High Court, which ruled in its favour. The state government challenged the high court order in the apex court. At the same time, the government insisted that the bank should withdraw the case and expect release of fund later. The irresponsible behaviour of the state government led to the present situation. The board was superseded without giving a notice or a chance to it to argue its case.
Do you think it is the handiwork of your electoral ally, the Congress, to put Pawars, and the NCP in general, on the wrong-foot?
The state government’s irresponsible behaviour led to this situation. This issue has been going on for the last three- four years, and I had met former chief minister Ashok Chavan and current CM Prithviraj Chavan regarding this. I had argued that the government needed to release funds without any delay to save the bank. Besides, I had suggested the government take initiatives to get a banking licence for the MSC Bank. The only solution is that the government should at the earliest release the necessary fund. It is not acceptable that the release of funds has been opposed only because a majority of the bank’s 77 directors belong to the NCP. The government should have acted responsibly.
As the cooperation minister, were you kept in the dark?
The action was taken by the state cooperation department on the advice of the RBI.
Are you going to register your protest with Finance Minister Pranab Mukherjee for an early solution?
Let me first study the issue thoroughly and I will take a call later.
Ajit Pawar has blamed the Congress, saying the decision to supersede the board of directors was taken at the behest of Delhi. What’s your comment?
No comment.
Is there any danger to the Congress-NCP government in the state?
The NCP and Congress are in an alliance at the Centre and in the state. I have been reading reports in this regard in the media and press.
