Gandhinagar: State Cooperation Minister Raman Vora on Tuesday held a meeting with the leaders of cooperative movement in the state to make efforts to bail out the crisis-ridden Madhavpura Mercantile Cooperative Bank (MMCB).

An official release stated that the meeting discussed ways to avoid liquidation of the bank and added that Gujarat State Cooperative Bank and Federation of Urban Cooperative banks in Gujarat have assured all help in bailing out the MMCB.

He also said that the state government would set up a special court for recoveries in the case of MMCB.

He said that an aid of Rs 500 crore had been sought from the Central Government and a delegation of various cooperative associations and state government representatives would go to New Delhi to represent their case.

Vora also said that a demand has been made to the Reserve Bank of India (RBI) to give the insured deposits of the depositors of the MMCB without any liquidation process as the premium of the deposit insurance had been paid to the RBI. He said the administrator of the MMCB should actively try to recover as much advances as he could and as early as possible.

A process for the appointment of an advisory committee to help the administrator of the MMCB should be expedited and it should be formed immediately, the statement added.

He also said that the limit of payment in MMCB should be immediately raised to Rs 5,000 from Rs 1,000.

UNI

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