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{{Short description|Indian interstate bank (1968–2012)}}
{{Use dmy dates|date=June 2014}}
{{use Indian English|date=May 2014}}
{{Infobox company
| name = Madhavpura Mercantile Cooperative Bank
| logo =
| caption =
| type = cooperative
| traded_as =
| genre =
| fate = Licence cancelled by [[Reserve Bank of India|RBI]] on 1 June 2012
| foundation = [[Ahmedabad]], Gujarat ({{Start date|df=yes|1968|10|10}})
| founder =
| defunct = yes
| location_city = Ahmedabad
| locations =
| area_served = Interstate
| key_people = BKR Maruti(CEO)<br />Ramesh Parikh (Chairman)<ref>{{cite web|title=Madhavpura Bank repays depositors |url=http://www.moneycontrol.com/news/fixed-income/madhavpura-bank-repays-depositors_177937.html |work=Moneycontrol |access-date=23 May 2014 |date=26 August 2005 |url-status=live |archive-url=https://web.archive.org/web/20140524024715/http://www.moneycontrol.com/news/fixed-income/madhavpura-bank-repays-depositors_177937.html |archive-date=24 May 2014 }}</ref><br />Devendra Pandya (Managing Director)
| industry = Banking
| products =
| production =
| services =
| revenue =
| operating_income =
| net_income = – {{INRConvert|1147.13|c}}
| assets =
| equity =
| owner =
| num_employees =
| parent =
| divisions =
| subsid =
| homepage =
| footnotes =

}}
'''Madhavpura Mercantile Cooperative Bank''' ('''MMCB''') was a [[Gujarat]]-based interstate [[cooperative bank]] that became defunct and lost its licence after it was unable to pay back the money it owed public depositors. [[Reserve Bank of India]] cancelled its licence in June 2012 under section 22 of the Banking regulations Act, 1949.<ref>{{cite web |url=http://www.thehindubusinessline.com/industry-and-economy/banking/madhavpura-mercantile-coop-bank-licence-cancelled/article3501112.ece |title=Madhavpura Mercantile Co-op Bank licence cancelled | Business Line |publisher=Thehindubusinessline.com |access-date=22 May 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140522103609/http://www.thehindubusinessline.com/industry-and-economy/banking/madhavpura-mercantile-coop-bank-licence-cancelled/article3501112.ece |archive-date=22 May 2014 }}</ref>

==History==
Madhavpura Mercantile Cooperative Bank was registered as a [[cooperative society]] in [[Gujarat]] on 27 September 1968. It began business within a fortnight, on 10 October, in [[Ahmedabad]]'s Madhavpura spice-market area dealing with grocery traders. It received its banking licence 26 years later, on 19 August 1994, and became an interstate cooperative bank in April 1996. Three years later, in 1999, its status improved to that of a scheduled bank.<ref name="June">{{cite web|title=RBI annuls Madhavpura Mercantile Co-op Bank licence |url=http://www.thehindu.com/business/companies/rbi-annuls-madhavpura-mercantile-coop-bank-licence/article3501813.ece |work=The Hindu |access-date=24 May 2014 |date=8 June 2012 |url-status=live |archive-url=https://web.archive.org/web/20140525200757/http://www.thehindu.com/business/companies/rbi-annuls-madhavpura-mercantile-coop-bank-licence/article3501813.ece |archive-date=25 May 2014 }}</ref><ref name=IBS>{{cite web|title=Co-operative Bank Scams in India |url=http://www.icmrindia.org/casestudies/catalogue/Finance/Finance%20-%20Co-operative%20Bank%20Scams%20in%20India.htm |website=icmrindia.org |publisher=IBS Centre for Management Research |access-date=24 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140525201301/http://www.icmrindia.org/casestudies/catalogue/Finance/Finance%20-%20Co-operative%20Bank%20Scams%20in%20India.htm |archive-date=25 May 2014 }}</ref>

==Involvement with stock brokers and impact of the 2001 Sensex crash==
In 1999–2000, when the bank had 50,000 public depositors, it started lending out large sums of money to stock brokers in gross violation of [[Reserve Bank of India]] (RBI) rules and regulations. The MMCB had issued pay orders worth {{INRConvert|1200|c}} to stock broker [[Ketan Parekh]], which he discounted at [[Bank of India]].<ref name=reckoner>{{cite web|title=Madhavpura Bank: A ready reckoner |url=http://www.rediff.com/money/2001/mar/31spec.htm |work=Rediff |access-date=24 May 2014 |date=31 March 2001 |url-status=live |archive-url=https://web.archive.org/web/20160303233248/http://www.rediff.com/money/2001/mar/31spec.htm |archive-date=3 March 2016 }}</ref> The bank had also lent money to Mukesh Babu and Sirish Maniar of the brokerage firm Maniar Group. At the time banks in India were not allowed to lend more than {{INRConvert|15|c}} to stock brokers.<ref>{{cite web|title=Harshad Mehta & Ketan Parekh Scam |url=http://flame.org.in/knowledgecenter/scam.aspx |work=Flame |access-date=24 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20141028143815/http://flame.org.in/knowledgecenter/scam.aspx |archive-date=28 October 2014 }}</ref> In early 2001 Parekh and other brokers made a large sum of money when the [[Bombay Stock Exchange]]'s [[Sensex]] saw a [[Bull market|bull run]]; however, when the [[dotcom bubble]] burst, the Sensex dropped down to 3,000 points, and Parekh and the bank started having problems. On 8 March 2001, the news broke out that the bank had given a huge guarantee to Parekh which he lost in the stock crash. As little remained in the bank's coffers, public depositors began withdrawing their money; only a few were successful.<ref>{{cite web|title=MMCB to request Rs 500 cr central aid |url=http://www.business-standard.com/article/finance/mmcb-to-request-rs-500-cr-central-aid-104073101071_1.html |work=Business Standard |access-date=24 May 2014 |location=Ahmedabad, Gujarat |date=31 July 2004 |url-status=live |archive-url=https://web.archive.org/web/20140525232249/http://www.business-standard.com/article/finance/mmcb-to-request-rs-500-cr-central-aid-104073101071_1.html |archive-date=25 May 2014 }}</ref>

Prior to the scam, the Madhavpura Mercantile Cooperative Bank was the largest urban cooperative bank in Gujarat.<ref name="business-standard1"/> It had a deposit base of {{INRConvert|1200|c}} in March 2001, half of which was from other banks. Seeing the condition of the bank and fear of losing their money among the depositors the RBI restricted the bank's operations on 13 March 2001. The Central Registrar of Cooperative Societies superseded the bank's board, whose 12 members were<ref name=reckoner/>
{{Div col|colwidth=25em}}
# Ramesh Chandra Parikh (Chairman)
# Devendra Pandya (MD)
# Ramanlal Parikh
# Natverlal Desai
# Manilal Shah
# Prabhudas Kothari
# Purushottamdas Shah
# Pravinchandra Shah
# Pravinchandra Patel
# Dinesh Majumdar
# Sevantilal Shah
# Natverlal Thakker
{{div col end}}

==Investigation and steps taken by RBI==
On 13 March 2001 the RBI found out that the bank's net worth was −{{INRConvert|1147.13|c}}, its deposit erosion was 90.9% and gross [[non-performing asset]]s were 88.2% and {{INRConvert|1192.81|c}}. The next day, the registrar superseded the board and appointed an administrator as the overseer of the bank. On 23 August a scheme for reconstruction of the bank was approved by the RBI for a period of 10 years.<ref name=newsanalysis>{{cite web|last=Jacob |first=Ruby |title=Madhavpura Mercantile Co-operative Bank Ltd looses banking license |url=http://www.newsanalysis.fintotal.com/Madhavpura-Mercantile-Co-operative-Bank-Ltd-looses-banking-license/1926 |work=Fintotal |access-date=24 May 2014 |date=8 June 2012 |url-status=live |archive-url=https://web.archive.org/web/20140525214118/http://www.newsanalysis.fintotal.com/Madhavpura-Mercantile-Co-operative-Bank-Ltd-looses-banking-license/1926 |archive-date=25 May 2014 }}</ref> Further investigations revealed that after chairman Ramesh Chandra Parikh's son Vinit had lost {{INRConvert|50|c}} in the stock-market crash, his losses were paid for through the bank's funds.<ref name=reckoner/>

By February 2004 the bank was able to recover {{INRConvert|200|c}} from other banks; Ketan Parekh had returned only {{INRConvert|6|c}}.<ref>{{cite web|title=MMCB to refund Rs 200 crore by August |url=http://www.business-standard.com/article/finance/mmcb-to-refund-rs-200-crore-by-august-104022701097_1.html |work=Business Standard |access-date=24 May 2014 |date=27 February 2004 |url-status=live |archive-url=https://web.archive.org/web/20140525200641/http://www.business-standard.com/article/finance/mmcb-to-refund-rs-200-crore-by-august-104022701097_1.html |archive-date=25 May 2014 }}</ref> He was arrested that August, and in December a special [[Central Bureau of Investigation]] (CBI) court set up for the case cancelled Parekh's conditional bail after he failed to pay the promised {{INRConvert|380|c}}.<ref>{{cite web|title=Ketan Parekh faces non-bailable arrest warrant |url=http://www.business-standard.com/article/economy-policy/ketan-parekh-faces-non-bailable-arrest-warrant-104122101067_1.html |work=Business Standard |access-date=24 May 2014 |date=21 December 2004 |url-status=live |archive-url=https://web.archive.org/web/20140523010845/http://www.business-standard.com/article/economy-policy/ketan-parekh-faces-non-bailable-arrest-warrant-104122101067_1.html |archive-date=23 May 2014 }}</ref> In June 2003, a New Delhi court granted the CBI a five-day remand of the two Maniar Group stockbrokers – Shirish Manyar and Mukesh Babu.<ref>{{cite web|title=2 stock brokers remanded in Madhavpura case |url=http://www.thehindubusinessline.in/2003/06/13/stories/2003061302630300.htm |work=The Hindu Business Line |access-date=24 May 2014 |date=13 June 2003 |url-status=live |archive-url=https://web.archive.org/web/20140525195518/http://www.thehindubusinessline.in/2003/06/13/stories/2003061302630300.htm |archive-date=25 May 2014 }}</ref> Chargesheets were filed against MMCB chairman Parikh, its CEO Devendra Pandya, Ketan Parekh and his associate Dharmesh Joshi. Joshi's bank account in London containing £6 million was frozen by the CBI in March 2006.<ref name=news.one>{{cite web|title=London account of Stock broker Ketan Parekh's associate frozen|url=https://www.oneindia.com/2006/03/30/london-account-of-stock-broker-ketan-parekhs-associate-frozen-1143723915.html|publisher=Oneindia|access-date=24 May 2014|date=30 March 2006}}</ref>

==Cancellation of licence==
Reserve Bank of India found out on 31 March 2011 that the bank's net assets were worth -{{INRConvert|1316.50|c}} and deposit erosion was 100 percent, the gross non performing assets were -{{INRConvert|1126.55|c}} and losses were {{INRConvert|1357.41|c}}.<ref>{{cite web|last=Ray|first=Atmadip|title=RBI cancels scam-hit Madhavpura Coop Bank's licence|url=http://articles.economictimes.indiatimes.com/2012-06-07/news/32101089_1_urban-cooperative-banks-banking-regulator-reserve-bank|archive-url=https://web.archive.org/web/20140525200937/http://articles.economictimes.indiatimes.com/2012-06-07/news/32101089_1_urban-cooperative-banks-banking-regulator-reserve-bank|url-status=dead|archive-date=25 May 2014|work=Economic Times|access-date=24 May 2014|date=7 June 2012}}</ref><ref name="Mohan">{{cite web |last=Mohan |first=Raghu |title=Madhavpura Mercantile Coop Bank: A Short Life |url=http://www.businessworld.in/news/economy/madhavpura-mercantile-coop-bank-a-short-life/417725/page-1.html |work=businessworld.in |access-date=24 May 2014 |date=7 June 2012 |url-status=dead |archive-url=https://web.archive.org/web/20140525195737/http://www.businessworld.in/news/economy/madhavpura-mercantile-coop-bank-a-short-life/417725/page-1.html |archive-date=25 May 2014 }}</ref> After the reconstruction scheme expired on 23 August 2011 and after seeing no major improvement in the bank's performance the RBI advised the Government of India on 26 December to liquidate the bank.<ref name="business-standard1">{{cite web|url=http://www.business-standard.com/article/finance/gujarat-s-urban-cooperative-banks-112070400046_1.html |title=Gujarat's urban cooperative banks |publisher=Business Standard |date=4 July 2012 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522091227/http://www.business-standard.com/article/finance/gujarat-s-urban-cooperative-banks-112070400046_1.html |archive-date=22 May 2014 }}</ref> On 4 January 2012 the Central Task Force for Cooperative Urban Banks also gave the same advice to the [[Government of India]].<ref name="June"/>

The Reserve bank issued a showcause notice to the bank on 16 March 2012 asking why it banking licence should not be cancelled. The cooperative bank replied that the main reason for the failure of the restructuring scheme was the unwillingness of the other cooperative banks to fulfill their commitments and it suggested another revival plan in which an NRI was willing to give {{INRConvert|500|c}} to the bank for a period of 10 years through the [[World Bank]].<ref name="Mohan"/> It was able to recover only {{INRConvert|3|c}} from public defaulters and {{INRConvert|800|c|year=2001}} were debt on Ketan Parekh. Also the bank neither had any background information regarding the NRI who was willing to help nor the source of his funds. Seeing this the RBI cancelled the bank's licence with effect from 4 June 2012.<ref name="June"/><ref name=newsanalysis/><ref>{{cite web|title=Reserve Bank Cancels the Licence of The Madhavpura Mercantile Co-perative Bank Ltd., Ahmedabad (Gujarat) |url=http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=26606 |publisher=Reserve Bank of India |access-date=25 May 2014 |date=7 June 2012 |url-status=live |archive-url=https://web.archive.org/web/20140525202930/http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=26606 |archive-date=25 May 2014 }}</ref>

As of 5 June 2012 Parekh had paid only {{INRConvert|329|c}}. Parekh alone had to pay {{INRConvert|569|c}} at the interest rate of 12% per year resulted {{INRConvert|668|c}}.<ref>{{cite web|url=http://www.business-standard.com/article/finance/rbi-cancels-madhavpura-mercantile-s-banking-licence-112060500071_1.html |title=RBI cancels Madhavpura Mercantile's banking licence |work=Business Standard |date=5 June 2012 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522090854/http://www.business-standard.com/article/finance/rbi-cancels-madhavpura-mercantile-s-banking-licence-112060500071_1.html |archive-date=22 May 2014 }}</ref>

As of June 2013, 700 civil and 230 criminal cases filed by the bank were pending in various courts.<ref name=dna>{{cite web|title=Madhavpura Bank plans OTS for recovery |url=http://www.dnaindia.com/ahmedabad/report-madhavpura-bank-plans-ots-for-recovery-1844105 |work=DNA India |access-date=24 May 2014 |location=[[Ahmedabad]] |date=5 June 2013 |url-status=live |archive-url=https://web.archive.org/web/20140525201000/http://www.dnaindia.com/ahmedabad/report-madhavpura-bank-plans-ots-for-recovery-1844105 |archive-date=25 May 2014 }}</ref> Several cases were filed against the bank and in 70 of these cases trial hadn't begun as of March 2014.<ref name=ahmedabad>{{cite web |last=Zala |first=Vijay |title=Taarikh pe taarikh |url=http://www.ahmedabadmirror.com/index.aspx?page=article&sectid=2&contentid=2014032020140320024636484f9ab36dd |work=Ahmedabad Mirror |access-date=24 May 2014 |date=20 March 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140525232515/http://www.ahmedabadmirror.com/index.aspx?page=article&sectid=2&contentid=2014032020140320024636484f9ab36dd |archive-date=25 May 2014 }}</ref>
One of the accused Ramesh Chandra Parikh, former chairman of the bank died in 2007 while in judicial custody.<ref name=ahmedabad/><ref name=yahoo>{{cite web|title=Re-investigate Madhavpura Cooperative Bank scam: Prosecutor |url=https://in.news.yahoo.com/investigate-madhavpura-cooperative-bank-scam-prosecutor-20110107-070830-701.html |work=Yahoo |access-date=24 May 2014 |date=7 January 2011 |url-status=live |archive-url=https://web.archive.org/web/20140525213336/https://in.news.yahoo.com/investigate-madhavpura-cooperative-bank-scam-prosecutor-20110107-070830-701.html |archive-date=25 May 2014 }}</ref> In January 2011 the public prosecutor in the case, Chetan Shah demanded re-investigation of the case.<ref name=yahoo/>

==Aftermath==
After the scam was unfolded the RBI restricted the cooperative banks from providing money to brokerage firms, giving assistance against securities such as shares and debentures and formed task forces to formulate revival plans for the banks that were affected. In most cases the affected bank was merged to a bigger Urban Cooperative Bank. The banking regulatory authority increased the number of inspections of balance sheets of cooperative banks from once in two years to every year. A [[Lok Sabha|parliamentary]] panel was set up to investigate in the stock market scam. The panel found out that the urban cooperative banks were manipulating their activities and that in absence of any inspecting authority many brokerage firms were using funds provided by these banks to manipulate the market.<ref name="business-standard1"/> After the scam cooperative banks found it difficult to win back the trust and confidence of their customers. Chairman of the National Federation of Urban Cooperative Banks & Credit Societies Ltd, H K Patil had said;<ref name="business-standard1"/>
<blockquote>The MMCB episode came as a big storm to the cooperative movement. However, the movement withstood and overcome the storm and for past few years, cooperative banks are seen doing fairly well. The regulator, too, has taken a note of the operations of UCBs,<ref name="business-standard1"/></blockquote>The Bank filed a large number of cases against various defaulters. CID and Central Bureau of Investigation filed several charge sheets. In the case, a defaulter agreed to pay back the withstanding amount case against him was closed. Over 40 cases against defaulters were still pending in Mumbai as of July 2012.<ref name="business-standard1"/> Government bodies like [[Bank of India]] and Deposit Insurance & Credit Guarantee Corporation were given priority for due recovery.<ref>{{cite web|url=http://www.business-standard.com/article/finance/mmcb-govt-bodies-to-get-dues-first-112060600012_1.html |title=MMCB: Govt bodies to get dues first |work=Business Standard |date=6 June 2012 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522085353/http://www.business-standard.com/article/finance/mmcb-govt-bodies-to-get-dues-first-112060600012_1.html |archive-date=22 May 2014 }}</ref> After the scam [[Securities and Exchange Board of India]], the regulatory body for the Indian stock markets was given more power in investigating cases against manipulation and insider trading and to impose heavy penalty and initiate criminal proceedings.<ref>{{cite web|url=http://www.business-standard.com/article/markets/market-regulator-shifts-focus-to-manipulation-price-rigging-112061400031_1.html |title=Market regulator shifts focus to manipulation, price rigging |work=Business Standard |date=14 June 2012 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522085450/http://www.business-standard.com/article/markets/market-regulator-shifts-focus-to-manipulation-price-rigging-112061400031_1.html |archive-date=22 May 2014 }}</ref> Chartered accounted M.M. Chitale played a key role in the formulation and execution of restructuring scheme. The committee under Chitale recommended that the bank should be allowed to make payments under a restructuring scheme. He refused to accept any fees for his work.<ref name=Chitale>{{cite web|url=http://www.business-standard.com/article/finance/bs-people-m-m-chitale-111012700073_1.html |title=BS People: M M Chitale |work=Business Standard |date=27 January 2011 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522084901/http://www.business-standard.com/article/finance/bs-people-m-m-chitale-111012700073_1.html |archive-date=22 May 2014 }}</ref> MMCB repaid {{INRConvert|665|c}} due to 268 banks in installments.<ref name=Chitale/>
The RBI issued a circular on 21 July 2004 to the banks that had deposited money with the MMCB to treat their deposits to the bank as non-performing assets and submit the particulars of their deposits to the reserve bank.<ref>{{cite web|url=http://www.business-standard.com/article/finance/co-op-banks-told-to-write-mmcb-deposits-off-104072601028_1.html |title=Co-op banks told to write MMCB deposits off |work=Business Standard |date=26 July 2004 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522085926/http://www.business-standard.com/article/finance/co-op-banks-told-to-write-mmcb-deposits-off-104072601028_1.html |archive-date=22 May 2014 }}</ref> MMCB auctioned properties of defaulters worth {{INRConvert|85|c}} on 3 November 2004.<ref>{{cite web|url=http://www.business-standard.com/article/finance/mmcb-to-sell-defaulters-properties-104102001086_1.html |title=MMCB to sell defaulters' properties |work=Business Standard |date=20 October 2004 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522091033/http://www.business-standard.com/article/finance/mmcb-to-sell-defaulters-properties-104102001086_1.html |archive-date=22 May 2014 }}</ref> Parekh was arrested after the scam garnered media attention. A lower court granted him bail on the condition that he will pay back {{INRConvert|380|c}} to the bank in three years<ref name=AmitShah>{{cite web|title=Amit Shah took bribe from scamster Ketan Parekh? |url=http://www.rediff.com/news/report/amit-shah-took-bribe-from-ketan-parekh/20100727.htm |work=Reddif |access-date=24 May 2014 |date=27 July 2010 |url-status=live |archive-url=https://web.archive.org/web/20140524073000/http://www.rediff.com/news/report/amit-shah-took-bribe-from-ketan-parekh/20100727.htm |archive-date=24 May 2014 }}</ref> ending 24 August 2004. He failed to fulfill the condition and filed a plea in the [[Gujarat High Court]] to change the terms and conditions of the bail but the court asked him to withdraw the plea.<ref>{{cite web|url=http://www.business-standard.com/article/economy-policy/parekh-told-to-withdraw-plea-on-mmcb-case-104120201077_1.html |title=Parekh told to withdraw plea on MMCB case |work=Business Standard |date=2 December 2004 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522090916/http://www.business-standard.com/article/economy-policy/parekh-told-to-withdraw-plea-on-mmcb-case-104120201077_1.html |archive-date=22 May 2014 }}</ref> [[Ketan Parekh]] offered to pay {{INRConvert|50|c}} in 5 installments by May 2005 but the MMCB rejected his proposal.<ref>{{cite web|url=http://www.business-standard.com/article/finance/mmcb-rejects-new-kp-payment-plan-104122401039_1.html |title=MMCB rejects new KP payment plan |work=Business Standard |date=24 December 2004 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522085253/http://www.business-standard.com/article/finance/mmcb-rejects-new-kp-payment-plan-104122401039_1.html |archive-date=22 May 2014 }}</ref> Nitin Constructions agreed to pay {{INRConvert|11.50|c}} it owed to the MMCB and Dharnendra Agro Foods that owed Rs {{INRConvert|6.91|c}} to the bank agreed to pay back the withstanding amount.<ref>{{cite web|url=http://www.business-standard.com/article/finance/mmcb-initiates-steps-to-recover-rs-18-41-cr-105041901045_1.html |title=MMCB initiates steps to recover Rs 18.41 cr |work=Business Standard |date=19 April 2005 |access-date=22 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140522091153/http://www.business-standard.com/article/finance/mmcb-initiates-steps-to-recover-rs-18-41-cr-105041901045_1.html |archive-date=22 May 2014 }}</ref>
In August 2005 the bank disbursed {{INRConvert|140|c}} which included 25% of the principal amount and interest at the rate of 3% per annum to its public depositors and other cooperative banks in [[Rajkot]].<ref>{{cite web|title=Madhavpura Bank repays depositors |url=http://www.rediff.com/money/report/mmcb/20050826.htm |work=Rediff |access-date=24 May 2014 |url-status=live |archive-url=https://web.archive.org/web/20140525195944/http://www.rediff.com/money/report/mmcb/20050826.htm |archive-date=25 May 2014 }}</ref> Till March 2011 there were 1,645 Urban Cooperative Banks registered with the Reserve Bank of India. RBI had received 158 proposals for merging some of these banks and it issued no-objection certificates to 95 of these proposals. Only 6 UCBs had assets greater than {{INRConvert|500|c}}.<ref name="Mohan"/>

==Political allegations==
In July 2010 [[Arjun Modhwadia]], an [[Indian National Congress]] politician alleged that [[Amit Shah]] who was a former director of the bank, had received {{INRConvert|2.50|c}} in bribe from Ketan Parekh in exchange for help in the case.<ref name=AmitShah/> During the [[2014 Indian general election]] Digvijay Singh also made similar allegations.<ref>{{cite web |last=Chatterji |first=Saubhaddra |title=Amit Shah had a deal with Ketan Parekh: Digvijaya |url=http://www.hindustantimes.com/elections2014/election-beat/amit-shah-had-a-deal-with-ketan-parekh-digvijaya/article1-1216995.aspx |work=Hindustan Times |access-date=24 May 2014 |date=9 May 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140525232603/http://www.hindustantimes.com/elections2014/election-beat/amit-shah-had-a-deal-with-ketan-parekh-digvijaya/article1-1216995.aspx |archive-date=25 May 2014 }}</ref> In August 2011 before the term for the restructuring scheme was to finish a delegation representing the banking industry met with the Secretary of Union agriculture ministry P K Basu.<ref>{{cite web|title=Scam-hit Madhavpura Mercantile Co-op Bank's fate hangs in balance |url=http://archive.indianexpress.com/news/scamhit-madhavpura-mercantile-coop-bank-s-fate-hangs-in-balance/835245/ |work=Indian Express |access-date=24 May 2014 |date=22 August 2011 |url-status=live |archive-url=https://web.archive.org/web/20140525194948/http://archive.indianexpress.com/news/scamhit-madhavpura-mercantile-coop-bank-s-fate-hangs-in-balance/835245/ |archive-date=25 May 2014 }}</ref> However RBI cancelled the bank's licence in June 2012.<ref>{{cite web|title=RBI cancels licence of scam-tainted Madhavpura Mercantile Bank |url=http://archive.indianexpress.com/news/rbi-cancels-licence-of-scamtainted-madhavpura-mercantile-bank/959113/ |work=Indian Express |access-date=24 May 2014 |date=7 June 2012 |url-status=live |archive-url=https://web.archive.org/web/20140525195241/http://archive.indianexpress.com/news/rbi-cancels-licence-of-scamtainted-madhavpura-mercantile-bank/959113/ |archive-date=25 May 2014 }}</ref>

==Liquidation committee==

In 2013 the bank had to recover {{INRConvert|1467|c}} from a total number of 851 defaulters including 18 members of the broker Parikh's group which owed {{INRConvert|1117|c}} and another {{INRConvert|350|c}} owed by 833 defaulters. Chaman Kumar, a retired [[Indian Administrative Service]] officer had been appointed the liquidator.<ref name=dna/> The other members of liquidation committee were;
* P S Shenoy (former chairman of [[Bank of Baroda]])
* Siddharth Sinha (IIMA professor)
* Kaushik Patel ([[Chartered accountant]])

In 2012 the bank owed a total of {{INRConvert|1596|c}}:
* {{INRConvert|665|c}} to 281 banks
* {{INRConvert|436|c}} to Deposit Insurance & Credit Guarantee Corporation
* {{INRConvert|166|c}} as interest
* {{INRConvert|144|c}} to [[Bank of India]]
* {{INRConvert|98|c}} to public account holders
* {{INRConvert|87|c}} to Reserve Bank of India
Till 2013 the bank had launched 5 One time settlement schemes; in 2000, 2001, 2004, 2007 and 2013.<ref name=dna/>

==References==
{{reflist|30em}}

{{Banking in India}}

[[Category:Cooperative banks of India]]
[[Category:Defunct banks of India]]
[[Category:Confidence tricks]]
[[Category:Banks established in 1968]]
[[Category:Banks disestablished in 2012]]
[[Category:Indian companies disestablished in 2012]]

Madhavpura Mercantile Cooperative Bank - Revision history

Minguel at 21:11, 4 February 2026