Coming as a relief to Maharashtra's former deputy chief minister Ajit Pawar, Bombay High Court, through an interim order, stayed an inquiry against him (and 75 others) in the alleged Maharashtra state co-operative bank (MSCB) scam. The inquiry was set up on May 22, 2014, to probe their alleged role in the Rs 1000 crore loss to the financial institution.
Madhavrao Patil, one of the 76 accused, had approached the High Court, seeking cancellation of the amendment brought by the government to extend the probe. The High Court bench of Justice Sawant and Justice Kotwal stayed the probe.
Balasaheb Sarnaik, former deputy chairman of the bank, said, "The bank had given loans and rescheduled the outstanding loans with due permission from the central government and NABARD. The loans had a guarantee given by the government. The co-operative sugar factories and the ginning-spinning mills had defaulted in the repayment and the government had not honoured its guarantee by paying on their behalf. It was not a case of loss to the bank." The state government had later paid Rs 350 Crore in 2014 itself against the guarantee it had given and that had improved the financial position of the bank.
According to the co-operative act, the inquiry under section 88 had to be completed within 2 years and despite extending it once, by law, for six more months; the probe was not completed. Shivaji Pahinkar was the inquiry officer and the board of directors was dissolved before appointing an administrator. "In fact, the deposits with the bank lowered to just Rs 6000 crore from Rs 25,000 crore during the administrator's tenure. He also gave permission to sell off co-operative sugar factories," Sarnaik said. The six month-extension abated in November 2016; the state government, through an ordinance, extended it till June, 2018.
Of the 45 accused directors, 16 belong to Congress while 23 belong to NCP. BJP-Shiv Sena also had 10 of their prominent leaders as directors of the bank. Present state agriculture minister Pandurang Fundkar, tourism minister Jaykumar Rawal's father, Shiv Sena MP Anandrao Adsul were also named as accused in the inquiry. The High Court will consider cancelling or continuing the amendment during the trial.
