Date:30/03/2007 URL: http://www.thehindubusinessline.com/2007/03/30/stories/2007033002970600.htm

Back Liquidator appointed for Anand Urban Coop Bank

Virendra Pandit

Ahmedabad March 29 With the Reserve Bank of India (RBI) cancelling the license of the Anand Urban Cooperative Bank Ltd due to insolvency, the Gujarat Government's Registrar of Cooperative Societies has appointed Mr Deepak Dalal as liquidator of the bank, sources said here on Thursday.

The RBI had cancelled the license of the Anand-based Bank on March 27 as it ceased to be solvent and all efforts to revive it in consultation with the State Government failed. The RBI had also asked the Registrar of Cooperative Societies to order winding up the Bank and appoint a liquidator for it.

On liquidation, every depositor is entitled to repayment of his deposits up to a monetary ceiling of Rs 1 lakh from the Deposits Insurance and Credit Guarantee Corporation (DICGC), the RBI said in a release.

In view of the liquidity crunch faced by the bank, it was placed under strict directions as per the banking rules since 2004 and the RBI had, in November 2006, issued notice warning it to cancel the license to conduct banking business.