Thrissur: As Karuvannur co-operative bank scam turned into a political issue, the government has expedited steps to return the money of the depositors. As per the latest reports, around 20,000 depositors will get their money soon.
The government has initiated action to amass Rs 12 crore as the first phase of funding for the Karuvannur Bank in order to repay the depositors. A decision regarding this was taken at a meeting conducted recently under the chairmanship of V N Vasavan, the Minister for Cooperation. Those who had deposits below Rs 50,000 will be settled without delay.
The hurried efforts by the government to bail itself out of the situation by returning the money of at least those who hold small savings as soon as possible came after the Enforcement Directorate (ED) launched an investigation. The government aims to ensure that the bank is rescued from the crisis in one and a half months.
Although there is no decision yet on how to return the money of big depositors, the top priority is to settle the customers who invested below Rs 50,000 in the bank. It is learnt that many of these depositors are CPM workers. Even as steps are on to return the deposits, the sanctioning of loans has also resumed. Property loans up to Rs 10 lakh will be given immediately. Gradually, the maximum amount of property loan will be increased to Rs 20 lakh.
Cooperatives Protection Fund: Rules in two days
Thiruvananthapuram: A comprehensive plan will be framed within two days to protect cooperative banks under crisis. Currently, a plan drafted by the Cooperative department is under the consideration of the Law department. No fund will be granted to the banks to settle liabilities, Instead, the money granted from the cooperative protection fund should be used to rejuvenate the banks and increase its revenue.
Minister VN Vasavan said that strict action will be taken against co-operative societies over irregularities.
“ Irregularities in a few societies were detected in the scrutiny of the cooperative department.
The cooperative sector has a cumulative deposit of Rs 2.5 lakh crore. The government is responsible for each rupee of the depositors who reposed their trust in the cooperative establishments. The Cooperatives Protection Fund is being formed without using the depositors’ money. No one can destroy the cooperative sector,” he said.
