About cooperative banks

Q1. definitely yes

Q2. under Sec 4 provisions may be suspended provided it is published in gazette

Q3. if any provisions are not followed , make a representation to the concerned authority, if no progress, file a writ for direction

Q4. no

Dear Adv. N Vanaraj  .

Thanks for your replies to the specific questions . I would like to elaborate this particular case further .

A cooperative Bank in Mumbai got into trouble due to frauds committed by the Chairman of the Bank .He was arrested by CBI and his prosecution is on . The affected depositors and employees did every effort possible to approach the Government but nothing was done to revive the bank and presently the bank is under the Administrator and the fate of every employee and depositor is in uncertainty and future is dark for them.

The employees and depositors approached a corporate business house for help and have signed contracts with the business house . The business house agreed to revive the bank and signed collective and individual Agreements with every depositor , employee , borrower and shareholder . Purchased shares of every shareholder , swapping its own debentures with the shareholders of the cooperative bank .

Now collectively by the employees , depositors , borrowers and former shareholders the matter is being submitted to the Government and RBI . In this situation if the Business house has to revive the Bank needs to be exempted from many provisions of the Banking Regulation Act as the entire shareholding of the bank is with one Business house and according to the law applicable to private banks not more than 10% shares can be owned by a particular group .The business house wants to take the license as private bank and will not run it as a cooperative bank .

In this situation in the public interest the Group of employees , borrowers , depositors and former shareholders wish to move to the High Court filing a writ of mandamus to issue the instructions to the Government and the RBI to do the needful in public interest . Do you see any substantive or procedural roadblocks in their way in getting justice from the High Court ?

Thanking you in anticipation