Orissa HC stays closure of Baripada Urban Co-operative Bank

Baripada, Oct 8: Giving relief to the Management Committee of Baripada Urban Co-operative Bank, the Orissa High Court has put a stay on closure of the bank recently.

Following directive of Reserve Bank of India (RBI) the state government declared closure of the bank on September 14 and appointed liquidator. RBI had scarped the license of the co-operative bank after the local branch become bankrupt in October last year. Officials of the bank said that due to the heavy amount of pending loans, the co-operative bank became bankrupt.

Challenging the closure decision, the President of the bank management committee had filed a petition in the high court. Hearing the petition the court has put a stay on the closure of the bank till the next hearing. Notably on September 23, Jharkahnd Mukti Morcha (JMM) had called district bandh opposing the closure of the co-operative bank. Many organizations in the districts had supported the band. JMM demanded to re-open the bank and refund the money of the depositors.