Imphal, January 18: Compelled by the circumstances, the EA sought assistance from the MSF to check the illegal activities of the BOD.

After making a detail enquiry, the MSF came up with concrete evidences incriminating the BOD of indulging in various illegal activities and corruption in the name of giving appointment to some individuals, conveyed Tikensana.

The MSF then urged upon the Cooperation Minister and the RCS to put the BOD under suspension and to institute an official enquiry into the fraudulent practices.

Subsequently, the State Government suspended the BOD on July 13, 2006 and constituted a three member enquiry committee belonging to the Cooperative Department.

The committee conducting an enquiry over the BOD for more than a month.

In the meanwhile, the GM issued an order instructing all the staff of the bank to cooperate with the enquiry committee in their investigation.

The suspended BOD filed a case at Gauhati High Court, Imphal Bench against the suspension of the Government.

With the objective to enable establishment of the facts of the matter, the EA became a party of the case with the permission of the Court.

After hearing both the parties, the Court passed a judgement which read as "...In this view, I don't consider my interim stay on the impugned order be granted because if the impugned order is granted, the inquiry contemplated by the said order be frustrated and the truth on the serious allegations will not be proved," cited Tikensana.

After the enquiry committee submitted its report incriminating the BOD on 11 charges with relevant documents in its support, the State Government dissolved the BOD on July 14, 2006 .

However, the case is still pending in the Court undisposed.

Concerning the allegation that the EA has been scheming to ruin the bank, Tikensana contended that the BOA in association with the EA took up several programmes for the development of the bank.

The BOA (Board of Administrators) was constituted with Government nominees��Joint Secretary (Cooperation), Under Secretary (Finance) and Deputy Registrar (Cooperative Societies) as its members after the BOD was suspended .

As a result of the EA's relentless effort, the NPA was reduced to 14 percent while the bank's deposit was increased to Rs 105 crores.

Subsequently, the bank which was in weak status (Grade III) was upgraded to grade II after an inspection by the RBI on March 31, 2007.The RBI also granted permission to distribute dividends to shareholders based on the profit earned by the bank, claimed Tikensana.

Moreover, IUCB's Lamlong and Paona Bazar branches were also successfully computerised by December 2007.In its initiative to get the bank grade I, efforts are being made to computerise the remaining branches of Kwakeithel and Singjamei in accordance to the RBI directive by March this year, asserted the general secretary.

Following stringent measures taken up by the EA in collaboration with the bank's management, two recovery teams were constituted in October 2007.Following the sincere efforts of the recovery teams, the NPA was reduced to 12 percent by December last year and the bank's deposit reached Rs 111 crores, claimed Tikensana.

At such a juncture when the bank was recovering rapidly, the State Government inducted four members of the suspended BOD and a new one into the BOA with I Chandrasekhar as chairman on September 26 last year.

The EA appealed to the Corporation Minister to review the induction order which appeared to have been issued after much lobbying.

However, as the Minister failed to take up any necessary action, the EA after an executive committee meeting filed a case against the Government order in Gauhati High Court, Imphal Bench on September 28, 2007.Subsequently, the Court stayed the Government order.

After hearing both the parties, the Court issued a ruling which read as, "Upon hearing the learned counsel for the both sides at length, I am of the opinion that the stay order shall continue until further order.

However, liberty is given to the respondents to re-constitute the Administrative Board without the members of the previous Directors so that the election of the Administrative Board of the Bank can be constituted as per the directions and guidelines of the Reserve Bank of India for the purpose of holding of election".

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