Bank gaurantee from developer
SAA_Bombay
(Querist) 05 March 2012
This query is : Resolved
Dear Experts, In 2006 our developer gave an BG from Shri Arihant Co-op Bank. Building is already developed but as developer is not fulfilling his duties we decided to enquire the details. as part of same we sent a ltr to bank asking below :
1. Can a co-operative bank issue a BG by its own. As they have a tie-up with other bank, BG should consist name of that bank. which is not.
2. Second page of BG is not sealed.
3. As per RBI guidelines (Ghosh Committee Recommandations) persons signing the BG has to mention the POA number below his sign while signing the BG.
Now , its almost one month & we have send two reminder ltr but bank is not ready to reply on same. What to do? can we give RTI to co-operative bank?
ajay sethi
(Expert) 05 March 2012
Apnaloan.com Research Bureau
10 Aug 2007
Reserve Bank of India (RBI) has clarified that the co-operative banks are not covered by the Right to Information (RTI) Act 2005.
In a press release issued by the Gujarat State Cooperative Bank, it said, "In the reply, Alpana Killawala, Chief General Manager, Reserve Bank of India, press relation division, Central office has made it clear that cooperative banks are not covered by the Right to Information Act."
The Gujarat State Cooperative Bank Ltd as an apex institute of co-operative banks sought the opinion of Reserve Bank of India regarding the cooperative banks falling within the ambit of the RTI Act.
The cooperative banks are established under Co-operative Act of the respective states or Multi-state Cooperative Societies Act and not under any Parliamentary Statute. Therefore, they are not public authority as defined by the act.
The Sec.2 (h) of the act specifies the institutions as Public Authorities for which RTI Act is applicable. As per the section, the private sector and co-operative sector banks are not covered by the RTI Act and hence, they are not supposed to provide information under the said act.
The Registrar of Cooperative Societies (RCS), Gujarat State in his circular dated March 23, 2006, also specified that co-operative societies are not covered under the RTI Act.
Recently, chief information commissioner in his order in the case of Unjha Agriculture Produce Market Committee case under the RTI Act declared that the said circular of the RCS as void.
Therefore, the impression has been created that co-operative banks are now covered by the RTI Act.
ajay sethi
(Expert) 05 March 2012
Chandigarh, Sat May 01 2010, 23:18 hrs
Punjab Chief Information Commissioner R I Singh on Friday again made it explicitly clear to the Punjab State Co-operative Agriculture Development Bank Ltd that it was covered under the RTI Act. The bank had been denying information on the ground that it is not a public authority.
This time, information was refused to Harjit Singh Ahluwalia, head of the pensioners’ association of the bank. He had sought copies of documents from the MD about enhanced DA added to the pensions of retired employees.
Both the parties confirmed that there was no stay order by any court pertaining to the present complaint. The complainant pressed for hearing on merit, though it was admitted that a few cases earlier decided by the commission related to the bank and some other cooperative societies were pending before the high court. It was averred that the legal issues involved in the complaint were distinct.
The respondent said, “Bodies created under the Act are statutory bodies and those which come into existence in accordance with the provisions of the Act are not.” It was also argued that the bank was not financed by the government or any of its instrumentalities, and Registrar Cooperative Societies, Punjab, has only a regulatory role.After hearing both the parties, the CIC said information related to payment of DA installment falls under the RTI Act. “However, the respondent bank has erroneously chosen to deny information,” he said.
He said the Punjab State Cooperative Agricultural Development Bank Act, 1957, was enacted by the legislature, and it describes the respondent bank as the ‘State Bank’. The Act fully regulates and controls its working, particularly financial matters, and states that the Registrar, Cooperative Societies, Punjab, would be the trustee and the funds were raised by the bank against the guarantees of the state government, the CIC said. The State Bank is registered under the Cooperative Societies Act.
The entire working capital of the bank comes from state sources— 95 per cent comes from NABARD, 2.5 per cent from the state and another 2.5 per cent from the Centre. “Funds from NABARD are given against guarantee of the state government. Therefore, the respondent bank is a public authority,” he said.
“The bank concedes that the government holds a share capital of 50.71 lakh. This amount may not be large, but is big enough to give the government a legal foothold to ‘control’ the bank and its operations. Besides, the Managing Director of the bank is an appointee of the state government,” R I Singh said.
He directed the bank to provide copies of the documents free of cost within ten days. The case was adjourned to May 17 for hearing and compliance.
Shonee Kapoor
(Expert) 05 March 2012
Ajay Sethi has given you pointers.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Raj Kumar Makkad
(Expert) 06 March 2012
I think the query seems resolved after going though in detail the reply put forth by sethi.
SAA_Bombay
(Querist) 06 March 2012
Dear Sethi Sir, Thanks for the reply but yet bank is not giving me any reply. we wanted to know the name of the culprit who has surrendered our BG to developer before time. Can we members take any action against this member who has surrendered BG to developer?
ajay sethi
(Expert) 06 March 2012
yes you can . file case against him for criminal breach of trust
