The Hindu Business Line : Eluru-based Dhana Bank liquidated

DHANA Urban Co-operative Bank at Eluru, the headquarters of West Godavari district, was liquidated on Thursday by a team of officials from the Co-operative Department and most of the depositors could get back their deposits.

The bank got into trouble last year, as some of the demand drafts issued by it were not honoured by other banks and the depositors stormed the bank. Subsequently, the Reserve Bank and the State Co-operative Department went into the issue and it was decided to liquidate the bank.

According to Mr K. Venkata Rao, heading the three-member team of officials from the Co-operative Department, the bank had collected Rs 2.82 crore from 1,297 depositors, of which Rs 2.38 crore was insured.

Already, said the liquidator, Rs 2 crore had been disbursed to the depositors and a sum of Rs 12.27 lakh was set aside as 480 depositors could not be traced, as the addresses furnished by them were not accurate.

He said cash of Rs 20 lakh was with the bank, when the crisis overtook it last year, and Rs 3 lakh could be realised by selling the immovable properties of the bank.

The demand draft-holders could not be paid the sum of Rs 17 lakh, as the Depositors Insurance Credit Guarantee Corporation refused their claim. The agitated DD-holders tried on Thursday to hold up the liquidation proceedings but were prevented by the police.

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