NGO Grahak Bharti Demands High-Level Probe into 54% NPA at Yavatmal DCC Bank, Seeks Administrator Appointment

Nagpur/Yavatmal – Barrister Vinod Tiwari, President of the consumer rights NGO Grahak Bharti, under the aegis of the Council for Protection of Rights, has written to Maharashtra Chief Minister Devendra Fadnavis, Chief Secretary Sunita Sainik, and Additional Chief Secretary (Home) Dr. I.S. Chahal, drawing their urgent attention to the “alarming” 54% Non-Performing Assets (NPA) level reported at the Yavatmal District Central Co-operative Bank Ltd. (YDCC Bank).

In his letter, Bar. Tiwari demanded an immediate high-level inquiry into what he termed the “sorry state of affairs” at YDCC Bank and urged the state government to appoint an administrator to take over its functioning. The letter was also marked as a statutory notice under Section 80 of the Civil Procedure Code (CPC), warning of a possible public interest litigation in the Bombay High Court if timely action is not taken.

Citing a recent news report published in a vernacular daily, Tiwari referred to a damning NABARD committee report which raised serious concerns over the mismanagement and financial health of YDCC Bank. According to the report, several statutory guidelines of the Reserve Bank of India (RBI), the State Government, and NABARD have allegedly been violated by the current bank management.

“This situation is alarming. With a 54% NPA level, the bank’s functioning has completely collapsed, risking the hard-earned savings of thousands of rural depositors and small farmers,” Tiwari said.

He further pointed out that the YDCC Bank caters largely to the farming and rural population of Yavatmal. This district has long been grappling with agrarian distress and farmer suicides. Drawing parallels to past banking failures in the region, such as the Mahila Co-operative Bank in Yavatmal, which eventually faced liquidation, Bar. Tiwari warned of a repeat of such a crisis unless immediate corrective measures are taken.

Bar. Tiwari emphasised that the state and central governments have infused substantial capital into YDCC Bank over the years, which is now at risk due to alleged gross mismanagement. “The government must act swiftly to safeguard public funds, protect depositors, and ensure transparency,” he stated.

The letter concludes with a firm note that if the government fails to act, Grahak Bharti will move the High Court by filing a writ petition in the form of a Public Interest Litigation (PIL).