Thrissur: Hundreds of depositors in the scam-hit Karuvannur Cooperative Bank at Irinjalakuda in Thrissur district are unlikely to get their full amount back soon. They would be given only 25 per cent of the total invested amount and this will be paid by the consortium of cooperative banks.
The bank was in the news recently after several borrowers received recovery notices for amounts greater than they had borrowed. The borrowers approached the Registrar of Cooperatives and a probe unearthed a multicrore scam perpetrated by a few employees with the connivance of the governing body comprising local CPM leaders.
More than Rs 100 crore from the consortium would be utilized for the rejuvenation activities of the bank.
Kerala Bank vice-chairman M K Kannan said the formation of a consortium comprising 160 cooperative banks in the district has been completed. “A 'raksha' package of Rs 100 crore would be officially announced by next week. The money being collected from the cooperative societies would be returned in 3 years with a 7.5 per cent interest rate," Kannan said.
(Kerala Bank is the brand name of the Kerala State Co-operative Bank Limited.)
Congress opposes move
The Thrissur district Congress leadership has made it clear that it would not cooperate with the consortium.
The government is returning the money which was stolen by the CPM leaders. The government should clarify as to why it is shying away from taking up the liabilities of the banks which have crashed, Congress stated.
The present action is being taken to prevent the attachment of the property of CPM leaders, the District Congress Committee (DCC) alleged.
