TNR News Network
Dharamshala:
In a major administrative shake-up, the Board of Directors (BoD) of the Kangra Central Cooperative Bank Limited (KCCB) has been suspended over serious financial irregularities and management failures. The move comes following years of alleged violations and repeated warnings from regulatory bodies.
The action was taken by the Registrar of Cooperative Societies, who has issued show-cause notices to all members of the board, giving them 10 days to respond. Failure to do so may result in legal proceedings based on the available documentary evidence.
The registrar has also initiated the process to disqualify the current board members not only from holding office but also from contesting in any cooperative society elections in the future.
NABARD reports uncover persistent irregularities
The decision stems from long-standing issues flagged by the National Bank for Agriculture and Rural Development (NABARD). Since 2015-16, NABARD’s inspections have consistently reported serious deficiencies in the bank’s operations.
Particularly in the years 2022, 2023, and 2024, NABARD highlighted multiple red flags, including a sharp rise in non-performing assets (NPAs), illegal loan disbursements, weak internal controls and lack of corrective measures despite repeated advisories.
Despite receiving these reports, the bank’s management committee failed to take substantial action. The Managing Director reportedly submitted reports only as a formality, with no meaningful discussion or action plan prepared by the board.
Divisional Commissioner appointed as administrator
Given the severity of the situation, the Registrar has suspended the entire board with immediate effect. Kangra Divisional Commissioner Vinod Kumar has been appointed as the Administrator of KCCB to oversee the bank’s operations until further notice. Currently, the bank’s board includes 20 members, including the Chairman.
Upcoming elections postponed amid natural disaster
In a related development, the Directorate of Cooperation has postponed the upcoming elections to the KCCB board, which were originally scheduled for September 29. The elections across 16 zones have been deferred until further orders, citing the ongoing natural calamities affecting several regions within the bank’s operational area.
The KCCB operates across five districts of Kangra, Una, Hamirpur, Kullu, and Lahaul-Spiti, some of which are currently disaster-affected. The directorate noted that conducting free, fair and transparent elections under current conditions would be impractical.
