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Now, curbs on Karnataka co-operative bank. Another PMC-like crisis unfolding?

The Karnataka bank situation reminds of the Punjab and Maharashtra Co-operative (PMC) bank crisis of 2019, when it was revealed that the PMC bank defaulted on loans to the tune of Rs. 6,500 crore.

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Karnataka Co-operative bank

The Reserve Bank of India (RBI) has imposed curbs on a co-operative bank in Karnataka, restricting the withdrawal limit to Rs 35,000. The central bank also restrained Sri Gururaghavendra Sahakara Bank Niyamitha (SGRSBN) bank in Bengaluru from granting or renewing loans, accepting deposits or making investments for a period of six months.

The notification came on January 10.

However, the bank’s license is not cancelled and it will continue to do business with restrictions.

Worried depositors rushed to the bank to hold talks with the management. A meeting is scheduled for January 19, in view of the issue.

The situation was unexpected, considering the fact that SGRSBN bank received the best NPA management award in 2018 from the National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFCUB).

The bank’s chairman K Ramakrishna has assured that the depositors’ money is “cent percent safe” with the bank. He blamed the 62 loans that locked up Rs 300 crore of deposit for the present situation.

BJP’s south Bengaluru MP Tejasvi Surya said that the customers need not panic, and that the finance minister has been informed about the matter.

Surya in his statement said that FM Nirmala Sitharaman has assured him that “the government will do everything in its capacity to protect the interests of the depositors and the long term interests of the bank. The statement added that Surya spoke to Sitharaman three times on January 13 and got reassurance from the minister that the interests of investors will be safeguarded.

The scenario reminds of the Punjab and Maharashtra Co-operative (PMC) bank crisis of 2019, when it was revealed that the PMC bank defaulted on loans to the tune of Rs. 6,500 crore.

On September 24, 2019, the RBI restrained the bank from doing any business for six months, while also capping the withdrawal limit to Rs 1,000, and later to 25,000.

It has to be noted that in 2013, an International Labour Orgranisation (ILO) report said that co-operative banks performed better than its competitors during the 2007-08 financial crisis.

Issue of dual regulation

Some experts attribute the current problems with the co-operative banks to dual regulation. These banks are regulated under both banking and co-operative legislation, by the RBI and the Registrar of Co-operative Societies (RCS) respectively.

The RCS takes care of administrative issues and controls the management elections.

Therefore, although the said banks came under the regulation of the RBI partially, when it came to bank management, the respective state governments had higher control.

Bringing co-operative banks under one regulatory mechanism might be a solution to the crisis, some believe.

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Rahul Gandhi is right, Gautam Adani should be arrested: RJD president Lalu Yadav

“Rahul Gandhi is right. Adani should be arrested,” said Prasad, who is an old ally of the Congress and a staunch opponent of the BJP, to which Adani is said to be close.

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RJD president Lalu Prasad Yadav on Friday spoke in support of Congress leader Rahul Gandhi’s demand for immediate arrest of Gautam Adani, after the Industrialist was charged in the US for alleged bribery and fraud.

Gandhi, the Leader of Opposition in the Lok Sabha, said on Thursday that Gautam Adani should be arrested immediately, and his protector Madhabi Puri Buch should be investigated

The former Congress chief claimed that the recent developments vindicate his long-standing allegations against Gautam Adani. He took a sharp dig at Prime Minister Narendra Modi and alleged that Modi is protecting Adani, and is also involved in corruption. 

Yadav, the former chief minister of Bihar, was responding to queries from journalists here about Gandhi’s statement on the previous day, in the backdrop of charges of bribery and fraud against the Adani group in the US.

“Rahul Gandhi is right. Adani should be arrested,” said Prasad, who is an old ally of the Congress and a staunch opponent of the BJP, to which Adani is said to be close.

The RJD supremo, who incidentally has been convicted in several fodder scam cases and is on bail, was also asked about prospects of the INDIA bloc, of which his party is a part, in Jharkhand, where the counting of votes for assembly polls is scheduled on Saturday.

Speaking to PTI, the ailing septuagenarian replied, “I would like to remain focused on my statement that Adani must be arrested. I am not worried much about a new government (in Jharkhand) where we are already in power.” Jharkhand witnessed a straight battle between the INDIA bloc and the BJP-led NDA, which included the JD(U) headed by Nitish Kumar, Prasad’s arch-rival and the current Chief Minister of Bihar.

Addressing a press conference on Thursday, Gandhi further said that Chief Ministers have been jailed for scams of Rs 10-15 crore, but Adani, who has committed a scam of Rs 2000 crore is walking free.

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Cash for votes row: BJP leader Vinod Tawde sends legal notice to Rahul Gandhi, Mallikarjun Kharge, asks them to apologise or face defamation

The BJP leader said the allegations against him were false, baseless and made with malafide intentions.

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Cash for votes row: BJP leader Vinod Tawde sends legal notice to Rahul Gandhi, Mallikarjun Kharge, asks them to apologise or face defamation

BJP leader Vinod Tawde, accused of distributing cash to influence voters, has sent a legal notice to Congress leaders Mallikarjun Kharge, Supriya Shrinate and Rahul Gandhi over the controversy. The BJP leader has demanded their apologies or face a Rs 100-crore defamation case.

Vinod Tawde’s legal notice came after regional party Bahujan Vikas Aghadi (BVA) leader Hitendra Thakur on Tuesday accused him of distributing Rs 5 crore at a hotel in Virar in Palghar district, 60 km from Mumbai, to woo voters.

In the legal notice, the BJP leader said the allegations against him were false, baseless and made with malafide intentions. He claimed that he demanded an apology from the three Congress leaders for their remarks against him in the cash-for-votes row or he would be forced to initiate criminal proceedings against them.

Just a few hours before the Assembly Elections, a video went viral on Tuesday showing BVA workers storming into the hotel in Palghar during a meeting between Vinod Tawde and Rajan Naik, the BJP candidate from the Nalasopara seat. The BVA workers alleged that Tawde was caught red-handed with Rs 5 crore cash.

In the viral video, the BVA workers were seen taking out bundles of cash from a bag, while Tawde was sitting at a distance. The BVA workers also took pictures and videos of him on their phones. Amid these allegations, BVA leaders said that Rs 5 crore cash was distributed, an election official on Tuesday said Rs 9.93 lakh cash was recovered from the hotel rooms.

However, Vinod Tawde denied the allegation, saying he was only providing guidance to party workers on poll procedures and said he was not stupid enough to distribute money at his opponent’s hotel. Speaking to the media, he said that the Vivanta Hotel is owned by the Thakurs, and he is not stupid to go to their hotel and distribute money there.

The Police registered two FIRs against Tawde, BJP candidate Naik and others in connection with the controversy. Additionally, the Election Commission filed three FIRs against Tawde.

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3 dead, 9 hospitalised after gas leak at fertiliser plant in Maharashtra

According to police, the explosion released toxic chemical fumes.

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Three individuals, including two women, lost their lives and nine others were hospitalised following a gas leak caused by an explosion in a reactor at a fertiliser plant in Maharashtra’s Sangli district, an official said on Friday.

The incident occurred at approximately 6:30 PM on Thursday at the Myanmar Chemical Company, located in Shalgaon MIDC within Kadegaon tehsil.

Sangli Superintendent of Police Sandip Ghuge stated that the gas is suspected to be ammonia.

According to police, the explosion released toxic chemical fumes. “Approximately 12 people in the facility were affected and subsequently taken to the hospital. Tragically, two female workers and a security guard have died, while nine others are currently receiving treatment,” stated Sangram Shewale, Senior Inspector at Kadegaon police station.

Seven of the injured individuals have been admitted to Sahyadri Hospital in Karad, with five of them in critical condition in the ICU.

The deceased women have been identified as Suchita Uthale (50) from Yetgaon in Sangli district and Neelam Rethrekar (26) from Masur in Satara district, PTI reported.

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