Ouster of co-op bank board sparks political row in Pathanamthitta
The dissolution of the Tiruvalla East Cooperative Bank's governing body by the Kerala government has triggered a political dispute. The ousted board claims the action is biased and lacks legal standing, citing RBI jurisdiction.
Why it matters
The conflict highlights a jurisdictional power struggle between state cooperative authorities and the Reserve Bank of India regarding the regulation of urban cooperative banks.
The dissolution of the Left-backed governing body of the Tiruvalla East Cooperative Bank by the district Joint Registrar of Cooperative Societies has kicked up a political storm in Pathanamthitta, with the ousted board crying foul and threatening legal action.
Acting on an order issued by the district Joint Registrar, Shaji John, Assistant Registrar (Planning) in the office of the Joint Registrar (General), Pathanamthitta, assumed charge as the bank’s administrator on August 24. The order (C.R.B. 1081/2016), issued under Section 32 of the Kerala Cooperative Societies Act, says the bank’s governing body and managing director wilfully obstructed an inquiry ordered by the Registrar of Cooperative Societies under Section 65(1) by failing to produce the registers, records and other documents sought for the investigation.
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