LATUR: In a major political and administrative development, the Reserve Bank of India (RBI) has ordered the removal of Maharashtra Cooperation Minister Babasaheb Patil and seven other directors from the board of the Latur District Central Cooperative Bank (DCC Bank). The punitive action stems from the violation of the statutory 10-year tenure limit mandated for directors of central cooperative banks.

Minister Babasaheb Patil belongs to the Nationalist Congress Party (NCP) faction led by Deputy Chief Minister. The central bank's directive was issued following strict intervention and orders passed by the Aurangabad Bench of the Bombay High Court.

Genesis of the Case

The legal battle tracking this high-profile ouster originated from a petition filed by bank member Satish Sheshrao Jadhav. Under the Banking Regulation Act, 1949—subsequently amended by the Banking Laws (Amendment) Act, 2025—directors of District Central Cooperative Banks face a strict maximum tenure cap of ten years.

Earlier, State Cooperation Department Deputy Secretary Sudhir Amrite had formally flagged the issue, urging the Cooperation Commissioner in Pune to initiate action against directors across district cooperative banks who had overstayed their 10-year limits. Following this, Satish Jadhav filed a formal complaint with the RBI on May 25, 2026, seeking the immediate disqualification of eight directors from the Latur DCC Bank.

When initial administrative inertia kept the complaint pending, Jadhav moved the Bombay High Court on June 21, 2026. Responding to the plea, the High Court on August 3 directed the RBI to review and decide on the matter within six weeks.

Resignations and Final Order

Complying with the court's directives, the RBI issued notices to the concerned board members on September 4, asking them to submit explanations by September 10. In the interim, seven of the affected directors—identified as Ashok Shivajirao Patil Nilangekar, Shripatrao Nivruttirao Kakade, Swayamprabha Dhananjay Patil, Vyankatrao Dhondiram Birajdar, Prithviraj Harishchandra Shirsat, Pramod Jadhav, and Nagorao Patil—tendered their resignations to the bank’s Chairman and Managing Director, Hanumant Jadhav. These resignations were subsequently vetted and forwarded to the RBI.

On Friday, September 18, RBI Assistant General Manager Kapil Goswami officially ordered the removal of the remaining ineligible officeholders, invoking Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act, 1949. The decision is expected to send ripples across cooperative banking structures in Maharashtra, signaling strict regulatory enforcement of tenure caps for political and administrative office bearers.