HYDERABAD: Pointing out that the Central government and the Reserve Bank of India (RBI) have remained ‘silent’ on the alleged irregularities in AP Mahesh Cooperative Urban Bank Limited, Supreme Court advocate Diljit Singh Ahluwalia — appearing for the Mahesh Cooperative Bank Shareholders Welfare Association — told the Telangana High Court that the previous board of directors of the bank, including its chairman, senior vice-chairman and managing director, had siphoned off over `300 crore from the bank.
Ahluwalia made these submissions before Justice Abhinand Kumar Shavili, dealing with the petition filed recently by the AP Mahesh Cooperative Urban Bank Limited Shareholders Welfare Association, with a plea to suspend the board of directors of the bank and to appoint a retired Supreme Court or High court judge as an administrator.
On January 8 this year, Justice P Naveen Rao while dealing with batch petitions filed regarding the election held on December 20 last year to the posts of directors, directed the returning officer concerned to declare the result of the election. Further, the judge directed the newly elected directors not to take policy decisions affecting the affairs of the society and the bank, including dealing with funds of the society, until further orders of the court. Except for attending to the day to day needs of the society and the bank, and payment of salaries and allowances of the staff, no policy decisions should be taken, the judge noted.
Making his submissions further, Ahluwalia said that the Central Registrar of Cooperative Societies and the RBI remained silent to the representations made by the State government and the petitioner association seeking urgent forensic audit, appointment of administrator and a detailed enquiry with regard to alleged irregularities of the previous board of the bank. The issues covered by another single judge pertains to the election process, and the present case is about the fraud wherein more than `300 crore has been siphoned off, he added.
After hearing the case, Justice Shavili refused to pass any order since the order passed earlier by another judge will also apply in the present case which protects the interests of the small depositors. The judge issued notices to the respondents — the Central government, Central Registrar, RBI and others concerned — for filing their counter affidavits in the case and posted the matter to February 8 for further hearing