JAMMU, Feb 19: The Jammu and Kashmir government said the State Cooperative Agriculture and Rural Development (SCARD) Bank Ltd has not been declared bankrupt and that the process of its liquidation has been initiated in accordance with law due to prolonged financial and operational distress.
Replying to questions by legislators Dr Rajeev Kumar Bhagat, Vikram Randhawa, Surjeet Singh Slathia, and Vijay Kumar, Minister for Cooperatives Javid Ahmad Dar informed the house that the bank, established in 1962 under the Cooperative Societies Act, is not registered under the Banking Regulation Act and therefore does not fall under the purview of the Reserve Bank of India.
The minister said the bank is presently under the control of the union territory government through the registrar of cooperative societies (RCS) and the administrative department of cooperatives.
He reiterated that the bank has not been declared bankrupt and that liquidation proceedings have been initiated under the provisions of the Act, citing accumulated losses, weak governance and internal control systems, poor loan recovery and liquidity pressures.
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