BABASAHEB Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) TWO Directors of respondent No. 3-Bank have filed this petition challenging the order passed by the Hon'ble Minister of State for cooperation on 30-12-2008 on appeal, maintaining the order passed by respondent no. 2 - the Divisional Joint Registrar, Co-operative Societies, on 9-6-2008 in the proceedings under section 78 of the Maharashtra Co-operative Societies Act, removing the petitioners from the post of Directors of respondent No. 3-Bank.

(2.) AFTER the matter was heard from time to time for admission, on 25-2-2009 it was admitted and listed for expeditious hearing.

(3.) FACTS, which are material for deciding this petition, are as under : the petitioners were elected as Directors of respondent No. 3 Chandrapur district Central Co-operative Bank. By a resolution of the Board of Directors of respondent No. 3-Bank passed on 21-12-2002, a Committee comprising of the petitioners and some others was constituted for purchase of the Government securities. During the period from 10-10-2003 to 27-4-2005, on behalf of respondent No. 3-Bank, Government securities worth Rs. 75 crores were purchased for a sum of Rs. 83. 73 crores. More than 5% each of these transactions were undertaken through a few individual brokers, when in terms of the guidelines issued by NABARD on 21-8-2002 not more than 5% of the transactions could be through a single broker in a year. The guidelines also require that if for any reason it became necessary to exceed this limit for any broker, specific reasons should be recorded in writing by the authority and the board should be informed of this post-facto. It was, however, stated at the bar that the Board had been apprised of the purchases and had approved the same.