National Bank for Agriculture and Rural Development (Nabard) has presented a scathing 169 page report stating how NCP controlled Maharashtra state cooperative bank has been used by Congress and NCP politicians for their personal gains.
Nabard has found that instead of working for the welfare of the low investment group for which Maharashtra state cooperative bank was actually formed, it has been helping high sector investments and sugar factory owners, many of which belong to Congress.
Nabard report shows how NCP and Congress ministers took huge loans from the bank and never repaid it. Some of the prominent loan defaulters include people related to the sugar factories in Maharashtra. Congress MLC Amrish Patel’s spinning mill owes the bank Rs. 182 crore. A sugar factory controlled by the family of Agriculture Minister Radhakrishna Vikhe Patil has not repaid a loan of Rs. 175 crore; a sugar factory controlled by the family of former CM Ashok Chavan still owes Rs. 31 crore; Forest Minister Patangrao Kadam’s factory has not paid the bank nearly Rs. 100 crore and a factory controlled by Water Resources Minister Ramraje Naik Nimbalkar which has defaulted on a loan of Rs. 16 crore.
Nabard also found that in blatant violation of the Nabard and RBI norms, the bank sanctioned Rs 100 crore to the Maharashtra state housing finance corporation and Rs 200 crore to the Maharashtra state electricity distribution company.
The board of directors, which also includes Sharad Pawar’s son Ajit, was found to have concealed non-performing assets, sell properties below their reserve prices and completely ignore the orders of RBI. On RBI’s order, the Board of Directors have now been removed.
Maharashtra State Cooperative Bank used to be Asia’s largest cooperative bank. But it now seems Congress-NCP turned it into a family lending bank. The whole episode reeks of another major scam involving Cognress and NCP. After the Adarsh society scam which led to Congress Chief Minister Ashok Chavan’s removal, Congress would have been hoping that no new scam surfaces in Maharashtra. But now it seems, where ever Congress is involved, news of scams will keep coming.