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Home  » Business » Gujarat minister, 28 others named in co-op bank scam

Gujarat minister, 28 others named in co-op bank scam

Source: PTI
June 11, 2003 20:30 IST
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The administrator of the crisis-ridden Panchamahal District Co-operative Bank has registered a complaint against Gujarat Minister of State for Cow Protection Prabhatsinh Chauhan and 28 others, alleging their involvement in the embezzlement of Rs 124 crore (Rs 1.24 billion) from the bank.

The bank administrator H J Mehta, in his complaint lodged with the Fatehpura police station, alleged that the accused had wrongly advanced nearly Rs 124 crore to two co-operative societies.

Other accused include former chairman of the bank and former BJP MP Gopalsinh Solanki, former Congress MLA from Godhra Rajendra Patel, BJP MLA from Zalod Bhura Katara, former bank manager Jayanti Joshi and another bank official Gunvantsinh Thakore, the sources added.

The PDCB was the first district cooperative bank to down its shutters after it withdrew from the Reserve Bank of India's clearing house citing 'liquidity' crisis as the reason, in April.

The RBI had clamped a ceiling of Rs 1,000 on withdrawals by invoking section 35 (A) of Co-operative Act.

The accused, it is alleged, were instrumental in 'wrongly' advancing Rs 82 crore (Rs 820 million) to Sukhsar co-operative Society and Rs 42 crore (Rs 420 million) to Nani Bhuvedi Co-Operative Society.

The Gujarat government, on May 12, had appointed an administrator to the bank, which has 38 branches in the Panchamahal and Dahod districts.

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