Baripada: Over 72,000 depositors of Baripada Urban Cooperative Bank (BUCB) have long been waiting to get back their money,
They throng the BUCB every day ever since the High Court issued an interim court order directing the management to disburse the money of the depositors within eight weeks.
It may be noted here that RBI had cancelled the cooperative bank’s license as its financial condition was not sound in October 2014. Since then thousands of depositors were in trouble as their money got stuck in the bank.
Stakeholders of Baripada Urban Cooperative Bank (bUCB) have long been demanding their deposited money back, but their efforts have proved futile.
The recent HC order has rekindled hopes for return of their long-stuck deposits.
According to some depositors, they had appealed to the RBI April 24, 2018, to allow the bank to return their money, but their appeal was rejected.
Since then thousands of depositors have desperately been running from pillar to post to get their deposits back.
Under pressure, the bank management had moved the High Court against the RBI directive for closure of operations.
In its interim order, the HC had directed return of money to depositors June 25, 2020.
Then, the RBI filed a writ petition at the HC against its order.
However, the HC ordered return of deposits.
Meanwhile, a liquidator has been appointed for the bank management. But a case has been filed at the court over appointment of a liquidator.
Thousands of depositors are living in miserable condition when they are unable to get their money from the bank.
Manoj Sendha, a cloth store owner of Baripada town, said, “The amount of profits I was making from this business was deposited in the bank. But all the deposits are stuck in the bank at this time of crisis.”
Explaining her miseries, Swagatika Nayak, a service holder of Baripada, said,” I have a fixed deposit with monthly savings. The money has got stuck over years. I am tired of running from pillar to post. Following the HC order, I have submitted all necessary documents.”
The depositors alleged that though RBI fixed guidelines for refund of depositors’ money, no steps have been taken by the bank in the interest of the beneficiaries.
Many depositors frustrated with the apathetic attitude of the bank authorities had drawn the attention of the cooperation minister and Chief Minister to their plight earlier.
Urban Cooperative Bank was one of the leading banks in Mayurbhanj district with three branches at Udala, Karanjia and Rairangpur. However, political interference and huge loans led to its fall.
Most of the stakeholders are senior citizens. They have deposited their retirement benefits with the bank hoping to get their interest. They have to face several problems in getting their money back after the closure of the financial institution.
The RBI cancelled the licence citing irregularities like fabricated entries under branch adjustment, interest receivable heads, huge deficit in provisioning due to wrong asset classification and under reporting of Non-Performance Assets (NPA).
Around 72,000 depositors have their deposits with the bank. At present, the bank has net cash of Rs 68 crore.
PNN