Code of Criminal Procedure being amended Cabinet decision on financial crisis of 2 Cooperative Banks today

Excelsior Correspondent
JAMMU, Mar 29: State Cabinet, which is meeting under the chairmanship of Chief Minister, Omar Abdullah tomorrow afternoon, is likely to accord approval to the infusion of Rs 203 crore in two cooperative banks to bail them out of financial crisis, which is imperative to obtain license from the Reserve Bank of India.
Authoritative sources told EXCELSIOR that due to mismanagement in terms of manpower planning, indiscriminate branch opening resulting in increased establishment expenses without corresponding increase in business operations, poor recovery, the Jammu Central Cooperative Bank (JCCB) is suffering loss of Rs 120 crore and Anantnag Cooperative Bank Rs 77 crore.
“While the JCCB is suffering 10.88 per cent erosion of deposits, the Anantnag Cooperative Bank is having erosion of 45.93 per cent”, sources said, adding “these banks can never manage their own share as the scenario of further losses continues even now”.
“Keeping in view the prevailing situation in these banks and all other aspects, the Cooperative Department is seeking the approval of the Cabinet for infusion of Rs 203 crore so as to meet the requirement of getting the license for these banks from the Reserve Bank of India, which has been made mandatory”, sources said.
They informed that Cabinet will also accord approval to approach the Reserve Bank of India for granting a time of one year to work upon a road map and for meeting the requirement of Rs 203.09 crore from a combination of plan/ non-plan resources, market borrowing and other avenues including institutional financing in case the prescribed amount is not readily made available.
It will also consider and take decision regarding roping in Advocate General/ Vigilance Commissioner and professionals of RBI/NABARD for protecting these institutions from litigation and focus on future working, probe into periodical mismanagement, misappropriation, involvement and role of the department up to Apex Level, sources said.
Sources informed that Cabinet will also consider the proposal of the Home Department regarding amendment in the Code of Criminal Procedure. “If approved, the Home Department will place an amendment bill in the ongoing session of the State Legislature for its nod”, sources said.
They said that the amendments in the Code of Criminal Procedure are being affected keeping in view the directions of the Supreme Court issued vide Order dated February 11, 2011 in the case titled Laxmi versus Union of India.
The Cabinet will also consider the proposals regarding the transfer of forest land for non-forestry purposes. Sources didn’t rule out the possibility of minor changes in the civil administration.


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