Special provisions relating to insured Co-operative Banks

Notwithstanding anything contained in this Act, in the case of an insured Co-operative Bank– (i) an order or approval to pass a resolution for winding up, amalgamation, division, compromise or transfer of assets and liabilities of the bank shall not take effect unless previous sanction therefor has been accorded in writing by the Reserve Bank of India. (ii) an order for winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances mentioned in Section 13-D of the Deposit Insurance Corporation Act, 1961 (47 of 1961); (iii) if so required by the Reserve Bank of India in writing in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management thereof, the Registrar shall pass an order for the removal of the Committee of the Bank and for appointment of an Administrator for such period, not exceeding five years in the aggregate, as may, from time to time, be specified by the Reserve Bank: (iv) no appeal, revision or review shall lie against an order referred to in Clauses (i), (ii) or (iii), made or passed with the previous sanction in writing or on the requisition of the Reserve Bank of India and no such order or sanction shall be liable to be called in question in any manner; (v) the liquidator of the insured Co-operative Bank or the transferee bank, as the case may be, shall be under an obligation to repay the Deposit Insurance Corporation established under the Deposit Insurance Corporation Act, 1961 (47 of 1961), in the circumstances, to the extent and in the manner provided in Section 21 of that Act. Explanation :– for the purposes of this Section–