Call to sack Charottar Nagarik Bank manager

The All Gujarat Co-operative Banks' Depositors and Account Holders Association has demanded the dismissal of Suresh Dalwadi, the general manager of the beleaguered Charottar Nagarik Sahakari Bank, for not adhering to a directive of the state Registrar of Companies (RoC) to recover dues of defaulters.

Instead, the association says, Dalwadi fraudulently set off loans of defaulters.

The association is a body which has been campaigning for the rights of depositors of co-operative banks in the state.

Prakash Gurjar, president of the association, stated that although the RoC had issued an order in August 2003 asking all banks to start procedures of recovering dues within 15 days, Dalwadi did practically nothing to recover dues.

"Now that the Gujarat High Court has asked the RoC to find out why the recovery was not made, the general manager has been issuing notices to defaulters in the past week or so. In fact, we have learnt that he is assuring them that the notices are just being issued as a formality," Gurjar said.

"Section 35 (A) of the Banking Regulation Act was clamped on Charottar Nagarik Bank on January 1, 2002, and Dalwadi's name figured in the list of accused in the first information report that was filed subsequently, but he turned government witness," said Gurjar.

He added that if the general manager had adhered to the recovery norms, over Rs 30 crore could have been recovered so far, but only Rs 6 crore has been recovered so far.

"We have information that Rs 80 crore worth of loans were set off by the general manager, and some of the loans included persons like his wife, sister in law and others," Gurjar said.

The Gujarat High Court, acting on a petition filed by the association seeking suspension of Dalwadi, had ordered the Registrar of Co-operatives to pass an order after hearing all parties.

According to Gurjar, Registrar of Companies B K Gupta has still not passed an order as yet.

"In fact, Gupta asked us to provide proof to substantiate the allegations of irregularities made by the association against Dalwadi, while it is his right to seek related documents from the bank," said Gurjar.

The office bearers of the association are meeting Gupta on Monday to seek a copy of the oral order that he is expected to make on the allegations made by the association.

"If he does not provide us with the order, we will approach the High Court again, as it will amount to contempt of court. The association will also announce the future course of action, including a date of the rally, where we will submit a memorandum to the chief minister," Gurjar said.

Charottar Nagarik Sahakari Bank general manager Suresh Dalwadi was not available for comment.