Maharashtra assembly in uproar over bank scam

The Shiv Sena-Bharatiya Janata Party (BJP) opposition yesterday grilled the Maharashtra government in the state legislative assembly on its complacent attitude towards the Rs2 billion cooperative bank scam in which the Nationalist Congress Party (NCP) leaders are involved.

Accusing the Congress-NCP-led government of shielding some people, BJP leader Gopinath Munde demanded an inquiry by the Central Bureau of Investigation (CBI) rather than by the state police into several bank scams including Nagpur, Osmanabad and Wardha.

While no charges were filed against Sunil Kedar, chairman of the scam-tainted Nagpur District Central Cooperative Bank (NDCCB) even 90 days after the scam came to light, the government has not made any attempt to arrest Pawanraje Nimbalkar, chairman of Osmanabad District Cooperative Bank, who is still absconding, said Narayan Rane, Sena leader and former state chief minister.

Kedar, a minister of state for energy in the previous Sena-BJP government and now an NCP MLA, had allegedly invested about Rs1.2 billion of the bank's money in government securities through Home Trade and other broking firms which were never actually delivered.

The investment was in gross violation of the Reserve Bank of India norms.

As for Nimbalkar, a cousin of Minister of Energy Dr Padamsinh Patil and an active NCP member, he too has played a key role in tapping off Rs300 million from the banks' savings through fraudulent brokers.

The bank scams also cover Shree Satguru Junglee Maharaj Cooperative Bank in Pune which did not receive Rs270 worth of gilts from the controversial Home Trade and other banks in Wardha, Amravati and Mumbai.

The scandal was revealed when an audit by the National Bank for Agriculture and Rural Develop-ment was conducted.

Rane pulled up the government for not tracing the whereabouts of Nimbalkar even though a journalist had tipped off the police. "Instead of arresting Raje, the police seem to be protecting him. He is certainly hiding with the blessings of the government," said an angry Rane.

The Shiv Sena leader said most farmers deposited their money in rural cooperative banks that had now betrayed them and looted them of their hard-earned savings.

In one of the long and serious discussions that the assembly has seen for some time, Chief Minister Vilasrao Deshmukh assured the House that his government would go all the way to ensure a full investigation and therefore there was no need for a CBI inquiry.

The Economic Offences Wing of the state police will inquire into the scandal and take serious action, he said.

Speaking in defence of his government, Deshmukh said, "A provisional chargesheet was indeed filed but the delay was caused by the investigation that was comprehensive and complete."

On Tuesday, the Aurangabad bench of the Mumbai High Court directed the state authorities to attach all the properties of the all the members of the managing committees of the Osmanabad, Nagpur Wardha and Amravati cooperative banks.

The court order was the result of a public interest litigation filed by an advocate Vilas Humbe who is from Osmanabad.

He claimed that Nimbalkar had sanctioned millions of rupees to firms floated by his family members to buy sick industrial units in Thane and Kudal in the Konkan region.

The court has also ordered the freezing of bank accounts of six firms floated by Nimbalkar.