Mail News Service
Jamshedpur, Dec 16: The Jharkhand State Cooperative Bank has been declared bankrupt and eight on the board of directors have resigned. They have been declared defaulters. Three meetings of the board of directors were called on October 5, December 8 and December 16 but they were all cancelled because of lack of quorum. And yet, the Registrar of Cooperatives, Chairman of NABARD and the Governor of Reserve Bank of India continue to remain passive. The JSCB Chairman and members of the board of directors and bank’s officials, as alleged, have swindled crores of rupees of the bank. The allegations include payment of crores of rupees to two software development companies without getting any work done by them and also sanctioning of huge loans by the board members in their own names and those of their family and relatives. The irony of it all is that travel allowances were claimed by the board members for the meetings that were cancelled because of lack of quorum. An argument that has been offered is that with meeting of the board of directors cancelled due to lack of quorum, then the board itself stood disbanded. On such circumstance the Registrar of Cooperatives has only to issue its directives on the dissolution of the board as mere formality.
