Rules mandate settling claims of depositors with less than Rs 5 lakh before processing larger claims; proposal sent to DICGC for no-dues certificate to initiate settlements for larger depositors
MARGAO
Who are these depositors? And, why have they not laid their claim on their deposits with the Madgaum Urban Cooperative Bank (MUCB) under liquidation till date?
Indeed, strange it may seem, but true. While 300-odd depositors, having more than Rs 5 lakh deposits with the MUCB bank under liquidation, have been anxiously waiting for the return of their deposits, it has come to light that deposits amounting to a whopping Rs 17 crore are lying unclaimed with the bank so far.
In fact, more than three years after the government-appointed Liquidator set in motion the process to liquidate the MUCB after the Reserve Bank of India cancelled the banking licence of the Margao-headquartered bank in July 2021, thousands of depositors have still not laid their claim on the return of their deposits.
Figures compiled by officials designated by the Liquidator shows that the total unclaimed deposits lying with the bank is pegged around Rs 17 crore.
The unusual situation has put the Liquidation officials in a tight spot. For, the liquidation rules mandates settlement of claims of depositors, having less than Rs 5 lakh deposit with the bank before setting in motion the process to clear the depositors with more than Rs 5 lakh deposit.
Given the situation, sources said the bank Liquidator is contemplating moving the government seeking permission to take up the process of settling the claims of depositors having deposits amounting over Rs 5 lakh as and when funds are available for disbursement.
The Liquidator is also believed to have moved a proposal to the Deposit Insurance and Credit Guarantee Corporation (DICGC) to issue a no dues certificate so as to start the process of settling the claims of depositors having more than Rs 5 lakh.
Liquidator-appointed designated officer, Kishore Amonkar said he is not in a position to explain why depositors have not laid claim on their deposits amounting to around Rs 17 crore. “The figure appears mindboggling, but the fact remains that these deposits may belong to thousands of depositors, who had small deposits with the bank,” Amonkar said.
To a question as to how long will the Liquidator wait for these depositors to lay claim on their deposits lying with the bank under liquidation, Amonkar said it is for the government to take a call on the question, though it is to be believed that the liquidation proceedings need to be capped within six years. “The Liquidator had given enough time for the depositors to lay their claim over their deposits. Though, a deadline was set for the depositors to submit their claims, which has lapsed, we have not stopped accepting claims on the deposits till date,” Amonkar added.
Around 300 depositors with deposits over Rs 5 lakh await payout as Liquidator scrambles for funds
MARGAO: Will the New Year 2025 ring in good news for the remaining 300-odd depositors of the Madgaum Urban Cooperative Bank (MUCB), who have been anxiously waiting for the return of their hard-earned deposits to date?
Well, the equation appears simple. While the Liquidator has so far settled the claims of 10,000-odd depositors, with deposits having less than Rs 5 lakh, amounting to Rs 148 crore, the Liquidator is now required to disburse Rs 42 crore to the 300-odd depositors, whose deposits exceed the Rs 5 lakh ceiling.
The moot question, however, remains unanswered – from where will the Liquidator arrange Rs 42 crore in order to settle the claims of these 300-odd depositors?
Well, the Liquidator has managed to dispose of one of its four assets, the bank building in the heart of the commercial capital, for an estimated amount of Rs 4.90 crore. The bank has three other assets, at Panaji, Benaulim and the building housing the bank headquarters at Aquem-Margao, with sources saying these assets could fetch minimum Rs 20-odd crore via sale.
Besides, the Liquidator has attached properties of loan defaulters, but sources in the know admitted that settlement of claims will begin only after liquid cash comes in possession of the Liquidator. “Unless and until, the Liquidator disposes of the bank assets and other properties, the depositors cannot except to receive their deposits. It’s only when the assets and properties are disposed of that the Liquidator will be in a position to settle the claims of the remaining 300-odd depositors,” sources added.
TIMELINE
- At the time of liquidation in August 2021, the Madgaum Urban Cooperative Bank had around 56,635 depositors
- The liquidation process was set in motion in May 2022 after the Reserve Bank of India had withdrawn the banking licence. Reason: The financial position of the MUCB showed no improvement. Besides, the bank affairs were conducted in a manner detrimental to the interests of the depositors
- The Liquidator has so far settled the claims of depositors having less than Rs 5 lakh amounting to around Rs 148 crore
