Panvel: Karnala Bank Depositors Await Resolution Beyond Insurance Claims

While thousands of depositors of Karnala Nagari Sahakari Bank (KNSB), Panvel received a deposit insurance claim amount up to a monetary ceiling of Rs 5 lakh from DICGC, a section of depositors have still been protesting who had deposits of more than Rs 5 lakhs.

The Reserve Bank of India (RBI) had cancelled the license of the KNBS on August 9, 2021, for not having adequate capital and being unable to pay its present depositors in full. A scam worth Rs 512 crore was unearthed and the RBI imposed a moratorium on the bank’s operation and restricted withdrawals to a maximum of Rs 500 per day. The chairman of the bank and former MLA Vivek Patil was also arrested by the Enforcement Directorate.

Following a process, the depositors were asked to submit the insurance form with KYC to the bank for insurance claims on their deposits. The bank sent the data of depositors to the DICGC and subsequently, around 32000 depositors received insurance claims upto Rs 5 lakhs

However, around 2490 depositors who had deposits of more than Rs 5 lakhs are still optimistic to get the remaining money following the liquidation or auction of properties of the bank, chairman of the bank and loan defaulters whose names are in the FIR. Following the arrest of Patil, his properties were attached by ED. Among depositors who had more than Rs 5 lakh deposits included a few Gram Panchayats, APMC, and freedom fighters. “In the FIR, there were names of major defaulters who procured loans by submitting fake documents. Properties of such defaulters need to be auctioned through processes and depositors should be returned the money,” demand Kadu.

Kantilal Kadu, President of Panvel Sangharsh Samiti of Karnala Bank Depositors staged a protest on Tuesday against the district administration for delaying in submission of an affidavit to the Maharashtra Protection of Interest of Depositors court about the attachment of properties. “The district administration had to submit an affidavit to the court regarding properties attached within one month of appointment as a competent authority by the Home Ministry,” said Kadu.

While the district administration clarified that it has already submitted an affidavit online, the protesters claimed that it was only after they put pressure. “As per the rule, a physical affidavit was to be submitted,” said Kadu, adding that they had given a week to submit an affidavit in physical form else they would intensify their protest and commit mass-immolation.