HC quashes supersession of DCC Bank

It is not fair to sepersede a bank for silly reasons

Finally, the tug-of-war between the state government and District Central Co-operative Bank Administrative Board has come to a decisive end as Bank’s former chairman S L Bojegowda won the legal battle. The court has declared void the circular issued by the Co-operative Societies joint registrar with regard to the superseding of DCC Bank.

Bojegowda informed that the government was trying to supersede the bank for the past one year. Quoting the court verdict, he said that it is not fair to sepersede a bank for silly reasons.

Background

Government had appointed K N Venkatesh Moorthi to probe 23 charges levelled against Bank’s chairman and members in January. Accordingly, after conducting inquiry for two months, Moorthi wrote in his report submitted to the Mysore Divisional Co-operative Societies joint registrar that the Administrative Board of the Bank has committed mistake. Following this, the Bank Administrative Board submitted a dossier of 400 pages to the joint registrar to counter the charges. But the joint registrar went ahead by issuing a circular superseding the Board and directing the bank to hand over charge to the deputy commissioner. Meanwhile, the Bank Administrative Board challenged joint registrar’s decision in the High Court and managed to obtain stay order. As a result, Bojegowda became bank chairman again and the legal battle continued.

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