Government has sacked Bank of Maharashtra chairman and managing director Sushil Muhnot, without citing any reason,. Muhnot was due to retire on September 30.
Ravindra Marathe, has been executive director of Bank of India, has taken charge as CEO and MD of the bank on Monday. He was earlier expected to join the bank on October 1. Prior to joining Bank of India, Marathe was general manager at Bank of Baroda.
In a letter addressed to the banks, government has said that Muhnot has been ‘removed’ from the post with immediate effect.
Sources from the financial circle said that after government completed their inquiry on corruption charges, Muhnot was given 90-day notice to choose between three options – to either resign, accept compulsory retirement or face arrest. “Since the 90-day period lapsed and there was no response from Muhnot, the government has decided to act,” said sources from financial circle.
This is one of the rare instance where government has removed CMD of a bank. Sources say that charges against him were that he occupied two accommodations one in Pune and other in Mumbai even as a CMD is entitled for only one accommodation. Later, the Pune accommodation was converted into a guest house. Both the accommodations belonged to the bank.
The second charge against him was that the cost of refurbishing the houses were way too higher than what he was entitled to spend. Sources said that the cost rose to Rs 1.66 crore on refurbishing both the houses.