Asks to clarify when Administrator will be named to oversee bank
PANAJI
The High Court of Bombay at Goa has directed the State government to explain how the Board of Directors of the Goa State Co-operative Bank Ltd continued to function despite the expiry of their term in August 2024. The court has sought a reply by May 8 and further asked the State to clarify when it intends to appoint an Administrator to oversee the Bank’s functioning until fresh elections are conducted.
The directive came during the hearing of a petition filed by a registered Co-operative Credit Society affiliated with the Goa State Co-operative Bank, challenging what it termed “complete inaction” on the part of the Registrar of Co-operative Societies for failing to take any steps to dissolve the Board of Directors after the expiry of their five-year term.
According to the petitioner, the last elections to the Board of the Goa State Co-operative Bank were held in August 2019, and as per the official declaration of results dated August 27, 2019, the tenure of the elected Board was valid till August 30, 2024. During the hearing on Monday, the petitioner argued that under the Goa Co-operative Societies Act, 2001, and the associated Rules of 2003, the Registrar must ensure timely elections are held before the expiry of the Board’s term to allow a smooth transition of governance.
The petitioner claimed that despite this mandate, no steps were taken to conduct fresh elections or appoint an Administrator as per Section 67A of the Act. The petition also alleged that the current Board continues to function in violation of statutory provisions and makes significant policy and financial decisions without legal authority.
The High Court, noting the gravity of the allegations, has now called upon the State to submit its response within the stipulated time. The matter will be heard on May 8.
