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May 4, 2002 | 1300 IST
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NDCC board superseded, administrator appointed

The board of directors of Nagpur District Central Co-operative Bank, involved in a Rs 1.5 billion government securities scam, has been dissolved and an administrator appointed to look after the bank's affairs, official sources said in Nagpur on Saturday.

The Commissioner of Co-operatives Ratnakar Gaikwad had served a notice on the bank and on Friday appointed district deputy registrar (Nagpur) S B Patil as the administrator, sources said.

The bank had invested huge sums in government securities but failed to obtain the required certificates. Its chairman, Nationalist Congress Part leader Sunil Kedar, had lodged a complaint with police on April 25, but the Co-operative Department itself filed a complaint against him and five broking firms.

Kedar was arrested on Friday and remanded to police custody till May 8.

The superseding of the director board is effected under section 110 a (iii) of the Maharashtra State Co-operative Societies Act of 1960, which enables appointment of an administrator. Patil's tenure as administrator will initially be for a period of six months.

This was as per the directive of the Reserve Bank of India following surfacing of the securities scam to the tune of Rs 1.5 billion. Earlier, the Co-operative Department had issued a notice under section 78 of the same act as to why the board should not be dissolved.

The order is based on independent findings of RBI and National Bank for Agriculture and Rural Development, which has pointed out several irregularities in NDCC bank's transaction.

NDCCB chairman arrested in gilts scam
Banks may sell Home Trade collaterals
RBI orders special audit of gilts deals
UCBs withdraw deposits from Nagpur bank
RBI may supercede two other co-op banks too
Maharashtra to inspect 630 urban co-op banks
Sebi bars Home Trade from trading till May 10
The Rediff Budget Special

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