Daijiworld Media Network - Mangalore (SP)

Mangalore, Feb 11: The High Court on Tuesday February 10, stayed operation of the government order that directed that the South Canara District Central Cooperative Bank Ltd (SCDCC) be split into two, to provide for separate entities for Dakshina Kannada and Udupi districts.

Justice D V Shylendra Kumar of the High Court issued the stay order, in response to a petition moved by Shiriyara Agricultural Cooperative Bank, Udupi questioning the propriety of the said order. The petitioners said, that the government, through the bifurcation, has conspired to hijack the election process to the SCDCC Bank scheduled to be held on March 4. Because of political influence involved in the decision, efforts have been made to split the Bank that has been functioning efficiently, into two, they averred.

As per rules, the government needs to obtain concurrence from the Reserve Bank of India before affecting changes in the organizational set up of a bank. The order was issued without following this procedure, in violation of legal requirements. Majority of the bank staff are against the division. The government has overlooked all these norms while issuing the order, the petitioners have complained.

Hearing in the case was adjourned after issuing the stay order.