Amanath Bank

Amanath Bank: HC asks Jaffer Sharief to pay Rs 43 crore in two weeks

September 1, 2015 by Nasheman

Bengaluru: The Karnataka High Court has directed former union minister C K Jaffer Sharief, one of the shareholders in Amanath Co-operative Bank Ltd (ACB), to pay Rs 43 crore to the High Court registry within two weeks towards the amount to be deposited for revival of the bank.

Justice S Abdul Nazeer passed the order hearing the petition filed by Masjid and Madrasa Arabia Waliullah seeking directions from the court to revive the bank as it is facing financial crisis due to irregularities.

In June 2015, the High Court had directed Sharief to file an affidavit on his promise to raise Rs 67 crore to bail ACB out of its financial crisis.

The court had sought details of the money to be raised and when would the former minister pay the promised money. Sharief had offered to raise Rs 67 crore to revive the bank instead of its proposed merger with Canara Bank.

On Monday, the bench also directed the government counsel to submit reports with regard to proceedings pending before the lower court against Rahman Khan, former union minister. The bench adjourned the next hearing to September 15.

(Agencies)

Amanath Bank Case: Every penny of the depositors should be returned, says judge

July 24, 2015 by Nasheman

Bengaluru: A single bench by Justice Nazir adjourned the Amanath Co-operative Bank trial on Thursday after the strong argument on the recovery of the depositors’ fund.

Bench also asked for meeting all the depositors before confirming on the conversion of the deposits to the share capital and recover the loss.

Every penny of the depositors should be returned, said the judge.

Rahmatullah Kotwal, Amanath Bank’s defense counsel, told Nasheman.in that 32 crores of the depositors’ money will be converted to share capital. He also said that if former Union Minister C.K. Jaffer Sharief, as part of his attempt to revive the loss-making bank, deposit Rs. 75 crore as share capital, then he will have the liberty to choose his own set of directors.

Amanath Bank Case: "No guilty person will go scot-free," says HC

April 7, 2015 by Nasheman

Bengaluru:The High Court on Monday observed that those who are guilty of the financial crisis of the Amanath Co-operative Bank Ltd will not be allowed to go scot-free.

While hearing a batch of petitions filed by bank account holders of Amanath Bank, Justice S Abdul Nazeer observed that the persons responsible for the crisis will be punished in accordance with law.

The case on Monday focused on how to recover the dues and loans advanced by the bank. The chorus of dozens of depositors who were present in court was to hand over the case to the CBI. The court asked for submission of the list of depositors to be submitted by the managing director of the bank.

The court was told that action was initiated to recover Rs 48 crore of dues and notices were issued to defaulters.

Justice S Abdul Nazeer asked the bank to recover the amount due from debtors/borrowers as far as possible by June 9, the next date of hearing. “No guilty person will go scot-free,” the judge said when a depositor broke down in the court. He said if necessary, a CID or CBI probe will be ordered to nail the culprits.

(Agencies)

High Court suggests Canara Bank to reconsider its decision on Amanath Bank

January 24, 2015 by Nasheman

Bengaluru: The High Court on Friday suggested Canara Bank to reconsider its decision on refusing to take over the ailing Amanath Co-operative Bank.

During the hearing of a petition on the take-over proposal, Justice Ram Mohan Reddy sought to know whether Amanath Bank was capable of overcoming its financial crisis.

The counsel for Canara Bank claimed that the Bank had only said that it would examine the prospects of taking over the bank and had never really agreed upon to take over Amanath Bank. The bench adjourned the matter to Feb 20.

The court also asked former Union Minister C.K. Jaffer Sharief and others whether they are interested in depositing Rs. 66 crore with their respective accounts in Amanath Cooperative Bank (ACB) as part of their attempt to revive the loss-making bank and save it from being merged with the Canara Bank.

Justice Ram Mohan Reddy passed the order on an application filed by Mr. Sharief and others seeking the court’s permission to deposit the amount to show their bona fide over their claim of organising funds for reviving the bank and to prevent its merger.

Amanath Co-operative employees beat up woman advocate, furore by supporters at bank office

January 10, 2015 by Nasheman

The customers and activists led by Sardar Ahmed Qureshi, President of Amanath Bank Share Holders and Depositors Protection Committee, demanded the immidiate termination of all the four employees involved in the assualt.

Bengaluru: A woman advocate representing Amanath bank was assaulted allegedly by employees of the bank on the High Court of Karnataka premises on Friday.

Mubarak Begum, who represents Amanath bank in the case regarding the merger with Canara Bank was assaulted around 4.30 p.m. when she came out of court hall 8 after making submissions.

According to sources close to Nasheman, Begum was assaulted because of her stance that the bank has enough assets to operate independently, and there is no need for the merger. The soures said that the employees of the bank, want the bank to merge with Canara Bank.

A complaint has been lodged against Baba Farulla, Mohammad Akmal, Syed Mansoor and Mansoor. They allegedly pulled the advocate’s hair and assualted her. Her colleague claimed the men were employees of the bank.

A tense situation was witnessed at the bank premises today, with both bank customers and supporters of the non-merger of the co-operative reined in on employees protesting the asualt on the advocate. The customers and activists led by Sardar Ahmed Qureshi, President of Amanath Bank Share Holders and Depositors Protection Committee, demanded the immidiate termination of all the four employees involved in the assualt.

Canara Bank refuses to take over Amanath

Canara Bank on Friday submitted in the High Court of Karnataka that it wanted to withdraw from its earlier decision to take over the loss-making Amanath Cooperative Bank.

During the hearing of petitions for and against the merger of Amanath Cooperative Bank with Canara Bank, the counsel representing the Canara Bank submitted that the bank would suffer a huge financial erosion and had therefore decided against the merger.

The latest audit of Amanath Cooperative Bank’s accounts has revealed that its customers would suffer a loss of 32 pc and not 18 pc as was estimated earlier, if the merger was to be financially viable.

Jaffer Sharief and associates to infuse Rs. 125cr into Amanath Bank

November 20, 2014 by Nasheman

Bengaluru: Former railway minister C K Jaffer Sharief who has challenged the merger of Amanath Bank with Canara Bank, would deposit a sum of Rs. 124 crore within a week.

Sharief also asked for the appointment of an ad hoc committee to overlook the process. His counsel furnished a list of names, which included Jaffer Sharief, Iqbal Huttur, Congress leader C M Ibrahim and JD(S) MLA B Z Zameer Ahmed Khan, who would be the members of the committee. The court however, refused to appoint the committee with the members suggested by Sharief.

It said that the committee cannot be constituted as per the wish of the petitioners and said the Court will decide who will be in the ad-hoc committee.

Hearing the petition, Justice Ram Mohan Reddy issued directions to deposit the money in the Amanath Cooperative Bank within a week after calculating the shortfall of money. During the earlier hearing, the Court had directed the petitioners to deposit over Rs 200 crore, which has been now reduced to Rs. 124 crore.

Meanwhile, the court has asked all the petitioners to appear before it on November 27 with proper identity proofs.

C. K. Jaffer Sharief orderd to submit fresh affidavit by Karnataka High Court

October 21, 2014 by Nasheman

Jaffer Sharief during a hunger strike in Eidgah Khuddus Sab demanding a CBI probe into misappropriation of funds of Amanath Co-operative Bank (ACB). Also seen in picture, is Mr. Rizwan Asad, Editor- Chief, Nasheman.

Mr. Jaffer Sharief during a hunger strike in Eidgah Khuddus Sab demanding a CBI probe into misappropriation of funds of Amanath Co-operative Bank (ACB). Also seen in picture, is Mr. Rizwan Asad, Editor- Chief, Nasheman. File Photo.

Bangalore: The Karnataka High Court on Tuesday ordered former Union minister C. K. Jaffer Sharief to submit a fresh affidavit, following objections raised by an appellant representing the Amanath Bank Welfare Association.

The appellant Mohammed Wazir Baig, complained that the signature on the affidavit furnished by Mr. Sharief is not his, and alleged that it’s forged.

Mr. Sharief in the previous court hearing on October 16th had informed the court of his intention to take over the beleaguered Amanath Co-operative Bank (ACB), and was asked to submit his scheme of action in detail before the next court hearing on 21st.

ACB has over 2 lakh 30 thousand customers, whose deposits have been frozen by RBI, following its directive to sieze the bank’s operations after revelations of misappropriation of funds on part of the Board of the Bank came forth.

According to sources close to Nasheman, Mr. Sharief would have to pump in at least Rs. 420 crore to pay the depositors and to operate the Bank. A total of Rs. 285.11 crore depositor money is stuck in the bank.

The court has also ordered ACB to furnish its balance sheet and other details, which the court will review before deciding the fate of the Bank.

The court will hear all the appeals related to the issue on October 30th.

Jaffer Sharief wants to take over Amanath Bank, ordered to submit his scheme by HC

October 16, 2014 by Nasheman

Bangalore: The Karnataka High Court today ordered former Union minister C. K. Jaffer Sharief and his associates to submit their scheme of action in detail before the next court hearing on 21st of this month, about their plan to take over the beleaguered Amanath Co-operative Bank (ACB).

Following the options laid out by the Reserve Bank of India (RBI), of either having the bank merged with another bank, or in the failure of the merger within the stipulated time frame – the liquidation of the bank, Canara Bank had announced its decision to take over the assets and liabilities of the beleaguered bank, which was welcomed by the current Board of Directors of ACB.

Mr. Sharief and his associates had sought a probe by the CBI into the affairs of ACB as it is facing financial crisis due to irregularities, and had filed a plea againt the merger of the Bank with Canara Bank.

A Division Bench comprising Chief Justice D.H. Waghela and Justice Ashok B. Hinchigeri have asked Mr. Sharief for a blueprint of his plan.

The bench said that it will review both the parties’ proposal before deciding the fate of the Bank.

The Bench will hear all the appeals related to the issue on October 21st.

Amanath Bank: HC notice to CBI, RBI

September 26, 2014 by Nasheman

Bangalore: The Karnataka High Court on Thursday ordered issue of notices to the Reserve Bank of India (RBI), Central Bureau Investigation (CBI) and others on the appeals filed against an interim order passed by a single judge bench of the court directing merger of Amanath Cooperative Bank (ACB) with Canara Bank.

A Division Bench comprising Chief Justice D.H. Waghela and Justice Ashok B. Hinchigeri passed the order on the appeals filed by the former Union Minister C.K. Jaffer Sharief and others questioning the July 31 order of the single bench.

The appellants contended that they had sought a probe by the CBI into the affairs of the ACB as it was facing financial crisis due to irregularities. But the single judge, without considering their plea for probe and other aspects, had permitted the merger by way of an interim order, and thus their petitions had become “infructuous”.

“Amanath Bank is the only financial institute which is known for its minority Muslim status, loosing the bank, will be a great loss to the community,” says Sardar Ahmed Qureshi, President of Amanath Bank Share Holders and Depositors Protection Committee.

According sources close to Nasheman, Canara Bank has declined to take over Amanath Bank on 23rd of this month.

The Bench will hear all the appeals related to the issue of merger on October 16.

Canara Bank declines to take over Amanath Bank, depositor's fate lies in balance

September 23, 2014 by Nasheman

Bangalore: After months of speculations and backdoor negotiations, Canara Bank has finally decided against taking over the beleaguered Amanath Co-operative Bank (ACB) today, much to the shock of depositors and well wishers.

According to sources close to Nasheman, Canara Bank’s board made the announcement at a court hearing here, retracting its earlier intention to take over the co-operative in August last year.

Despite numerous attempts, Nasheman was unable to contact Canara Bank officials to get a confirmation on their announcement, however, according to Karnataka Wakf Protection Joint Action Committee president, Sardar Ahmed Quraishi, “the merger will not take place.”

Following directives from RBI last year, to either merge the crisis hit Amanath Bank with another bank, or in failure of which – the liquidation of the bank, Canara Bank had come forward to take over the bank. However, since its announcement, the issue has become a political potboiler, with former Union minister C K Jaffer Sharief filing a petition against the merger and seeking CBI probe into the bank’s affairs.

Although it’s unsure, why Canara Bank decided to go against the merger, when even the Karnataka high court had given a green signal to take over ACB, according to terms approved by the Reserve Bank of India in early August this year, but inside sources told Nasheman that the Bank had waited long enough, and did not wanted to be involved in the politics surrounding it any longer.

Disappointed depositors

The announcement made by Canara Bank last year, had brought a ray of hope to over 2 lakh 30 thousand depositors and customers, whose life savings was stuck in ACB, after the Reserve Bank of India (RBI), in its position had restricted the bank from allowing withdrawals of more than Rs. 1,000 in six months, leaving depositors in the lurch.

However, with Canara’s new decision, depositors are disappointed and blame the state’s minority Muslim leaders to the bank’s debacle.

Rasool Wazir, a bank depositor said, “my entire family has deposits in the bank, we are not sure, if we will ever get back our money. These politicians have played a dirty game with the lives of the people”.

“Will they (politicians) pay for our livelihood? Will they take the responsibility?” asked Altaf Siddiqui another depositor.

The next court hearing will be held next week.