Reacting strongly to the RBI decision, Pawar alleged that the NCP sees political hand in RBI move to dissolve the MSCB board.

"The decision seems to have been taken at the highest political level in Delhi. If Chief Minister Prithviraj Chavan had known about it, as he claims, then it is usually discussed with other partners, but nothing of the sort has happened," he alleged.

The issue appears to have widened the fissures within the ruling Congress-NCP-led Democratic Front government in Maharashtra. An angry and upset Pawar speaking to the media claimed that the RBI decision was politically motivated.

"RBI is a national organization, therefore there was no need for the RBI to take a sudden decision. From all angles the needle of suspicion points toward a political decision taken in New Delhi by the Congress high command to dissolve the NCP- controlled largest cooperative bank of the state."

Ajit Pawar's uncle, Sharad Pawar, the NCP supremo and federal agriculture minister, also expressed his displeasure over the RBI decision to dissolve the MSCB. Sharad Pawar said that if an institution is performing well, it should be given some time to recover from financial crisis." I have called a meeting of top party leaders across the state in Mumbai on May 12, to discuss the MSCB issue, which will be on top of the party agenda," he added.

Maharashtra State Congress President Manikarao Thakre reacting to Pawar duo's anger and displeasure said their statements might have been caused by misconceptions.

Now it was the turn of Chavan to hit back at Pawars. Chavan said that the MSCB was nobody's personal fiefdom. "I will look into the working of the bank, which is a autonomous financial institution. I also dismiss the allegations of my deputy Ajit Pawar that it was a conspiracy hatched by the Congress to dissolve the NCP controlled bank. There is no political conspiracy into the RBI dissolving the bank's board of directors. And also there is no question of politics being played in this issue. The RBI has asked the government to take action against the MSCB for certain violations of banking rules and laws. If someone alleges that the RBI action has been followed on directions from Congress Party in New Delhi, then this is absolutely false," Chvan said.

Lashing out at the NCP, Chavan said, "The state government has shown its willingness to stand as guarantor for the MSCB. Honestly speaking, the money that the state government deposits in the MSCB belongs to the common people. Therefore, the bank is not the personal fiefdom of anyone. It is a financial institution; and the state government would find ways and means to save the bank at any cost. The board of management of the bank has been temporarily suspended. Therefore, there is no danger to the bank from any quarters and one should not think about this too," Chavan added.