Latur (Maharashtra): The Reserve Bank of India (RBI) has directed the removal of Maharashtra Cooperation Minister Babasaheb Patil and seven other directors of the Latur District Central Cooperative Bank after finding they exceeded the maximum tenure permitted under the amended Banking Regulation Act, 1949.
Regulatory action follows court directions
The RBI order, signed by Assistant General Manager Kapil Goswami, follows directions issued by the Aurangabad bench of the Bombay High Court in response to a petition filed by bank member Satish Sheshrao Jadhav. The central bank said the action was taken under provisions introduced by the Banking Laws (Amendment) Act, 2025, which caps the tenure of directors of District Central Cooperative Banks (DCCBs) at ten years.
Jadhav had first written to the RBI on May 25, asking the central bank to disqualify eight directors of the Latur DCCB for exceeding the 10-year limit. When the RBI did not act promptly, he approached the Bombay High Court on June 21. On August 3, the court asked the RBI to decide on the complaint within six weeks.
Sequence of events and responses
According to documents and correspondences cited in the court proceedings, the RBI sought replies from the concerned directors on September 4, setting a deadline of September 10 for their responses. On that date, seven directors submitted resignations to the bank's chairman and managing director, Hanumant Jadhav. The bank's executive director accepted those resignations and forwarded them by email to the RBI General Manager.
| Director | Status reported |
|---|---|
| Babasaheb Patil (Cooperation Minister, NCP) | Directed removed by RBI |
| Ashok Shivajirao Patil Nilangekar | Resigned on Sept 10 |
| Shripatrao Nivruttirao Kakade | Resigned on Sept 10 |
| Swayamprabha Dhananjay Patil | Resigned on Sept 10 |
| Vyankatrao Dhondiram Birajdar | Resigned on Sept 10 |
| Prithviraj Harishchandra Shirsat | Resigned on Sept 10 |
| Pramod Jadhav | Resigned on Sept 10 |
| Nagorao Patil | Resigned on Sept 10 |
Statutory ceiling and administrative follow-up
The Banking Regulation Act, 1949, as amended last year, introduced a clear tenure cap for DCCB directors to strengthen corporate governance in cooperative banks. The state Cooperation Department had flagged similar tenure breaches earlier: Deputy Secretary Sudhir Amrite wrote to the Cooperation Commissioner in Pune seeking action against directors who had served more than ten years.
Jadhav, the petitioner, is reported to have also copied his complaint to the Divisional Joint Registrar of Cooperative Societies for the Latur division, the Cooperation Commissioner and the NABARD section of the RBI before approaching the high court.
Local and political ramifications
The minister at the centre of the RBI action, Babasaheb Patil, is a member of the Nationalist Congress Party (NCP) led in the state by Deputy Chief Minister Sunetra Pawar. Removal of a serving minister from a cooperative bank's board is likely to draw political attention in Marathwada, where cooperative institutions remain politically significant.
Cooperative banks in Maharashtra often play a critical role in rural credit and local finance; therefore, regulatory compliance and board composition directly affect governance, depositor confidence and lending operations at the grassroots.
What happens next
- The RBI order was issued by its Assistant General Manager and communicated to the bank; further administrative steps are expected from the regulator and the state cooperation machinery.
- The Latur DCCB's board will need to reconstitute its directorships to comply with the statutory limits and ensure continuity of operations.
- The Cooperation Commissioner and the Registrar of Cooperative Societies may initiate follow-up action as required under state cooperative law.
Officials at the bank and the state cooperation department have not published a formal statement beyond the documents filed with the RBI and the court. The RBI order and associated correspondences form the primary basis for the action as reflected in court directions and the complaint filed by the bank member.
Further reporting will follow as the RBI, the Cooperation Commissioner and the Latur DCCB publish subsequent steps and any administrative or legal responses from the affected directors and political representatives.
