Sick Manipur State Land Development Cooperative Bank Ltd shutdown causes chain collapse of supported programmes

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IMPHAL, Jan 19: The decision of the state government regarding the liquidation of the Manipur State Land Development Cooperative Bank Ltd. (MSLDCB) has resulted in the failure of various revival programmes of the central government like the Long Time Cooperative Structure (LTCCS) scheme which aims to provide long term agricultural credit to the farmers for the improvement of farm products in the state.
It may be mentioned that, the Manipur State Land Development Cooperative Bank Ltd. (MSLDCB) is a registered bank having 2419 members with a paid up share capital of Rs. 36,91,513 of which Government share contribution is Rs.2,50,000. On the failure of the bank to repay the loan dues of NABARD for a sum of Rs.33,76,985 with principal of Rs.22,73 lakhs and Interest/Penal Interest of Rs 11.2 lakhs, the state government was called upon for the repayment of the loan invoking State guarantee.
The official source further mentioned that the state cabinet was not satisfied with the working of the bank and adopted a decision for liquidation of the bank in its cabinet meeting held on May 5, 2002 and May 29, 2002. Further, another meeting of the state cabinet held on January 29 2005 decided among others to complete the liquidation process within one month.
The source further mentioned that, liquidation process could not be proceeded due to the interim order of the Guwahati High Court passed on Writ Petition case No. 378 of 2005 on March 22, 2005 and April 2005 to maintain Status quo on theĀ  process of liquidation. The court case was filed by the president of the said bank Th Chandraknata Singh. The state government has so far repaid a sum of Rs.118.48( Rs.95.75 lakhs during 1998 and Rs.22.73 lakhs during 2006) to NABARD for the bank on two occasions till date. Now, the bank has no loan due of NABARD, the source added.
The official source further recalled that, the task Force under the Vidyanathan Committee felt that a long term Co-op Credit Society (LTCCS) are required of having a Land Mortgage Bank for enabling the LMB to float debentures. The State government assured to work in the spirit of the recommendation of the Task Force and as such entered into MOU with NABARD and consequently the state government initiated for amendment of certain relevant provisions of the Manipur State Cooperative Society Act, 1976 to effect that the STCCS is to enjoy applicability facility of the LTCCS, PCARDD is fully autonomous and allow it flexibility in borrowing and making investments. And NABARD Act as amended has opened to lend directly to any unit of the LTCCS or through any FI without necessity of taking government guarantees. In short it is a matter of steps being taken up by the Government of India for revitalization of the RCC institution under the recommendation of the Task Force, the source added.
In view of the above matter the commissioner Co-operative Government of Manipur has sought reconsideration to review the decision for liquidation of the MSLDCB be made by the state cabinet in order to restore the functioning of the MSLDCB which is the only cooperative institution organized mainly to provide Long Term Agricultural Credit for improvement and production purposes to the Primary Level Development Cooperative bank and farmer member.
It is also mentioned that as a policy of the Government of India, revival of the programme of Long Term Cooperative Credit Structure (LTCCS) is going to be taken up side by side with the implementation of revival of STCCS for which the final round of meeting for Ministers of Finance/Cooperative of all state being held shortly to settle the package. As per terms and conditions of the draft package for revival of the LTCCS a Land Development Bank which has been placed under Liquidation process before the signing of MoU would not be eligible for the participation of the package. But in the state of Manipur, the only eligible cooperative Bank to participate in the package is MSLDCB.
The source further mentioned that, unless the decision of liquidation of the bank is reviewed, there would be no chances of the state Land Development Coop. Bank to participate in the central package, and it may cause to non-compliance of the spirit of revival programme of the Long Term Cooperative Credit Structure as per the Vidyanathan Committee report, it is also mentioned that, the Manipur State Land Development Co-op. Bank is renamed as the Manipur Co-op Agriculture andĀ  Rural Development Bnak Ltd. as per the official order issued on June 31, 2010 of the RCS Manipur.
Keeping all these mentioned points the commissioner state cooperative department have drawn the attention of the state government to consider the review of the previous state government decision for liquidation of the MSLDCB, however there has been no responses from the state government till today, the source added.

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