Acting on the orders of the Reserve Bank of India (RBI), the Maharashtra government on Wednesday dissolved the board of directors of Solapur District Central Co-operative Bank and appointed Avinash Deshmukh, the district deputy registrar, as its administrator. The bank was under the control of the Nationalist Congress Party (NCP), as most of its directors are party members. In its order, the RBI had asked the state to take action against the board over financial irregularities by the bank, the officials said. According to a senior official from the state cooperation department, Nabard found many financial irregularities, mainly related to loans that were disbursed without mortgaging assets. Based on court’s orders, then Solapur district deputy registrar BT Lavand conducted a probe for the state.

Source: Hindustan Times May 30, 2018 19:52 UTC