The Congress on Saturday stepped up pressure on the government, with Opposition leader V.D. Satheesan demanding a CBI investigation to unearth the conspiracy behind the loan scam at the Karuvannur cooperative bank in Thrissur that left depositors in the lurch.
In a letter to Chief Minister Pinarayi Vijayan, Mr. Satheesan called for an Ordinance to revamp the deposit guarantee scheme in cooperative banks by doing away with the cap of ₹200,000 on the guarantee amount and reviewing the provision that the scheme would kick in only when the bank reached the liquidation stage.
“It is unfortunate that a woman with a deposit of ₹30 lakh in the Karuvannur bank lost her life because she could not find money for treatment. The government’s statement in the Assembly that 164 cooperatives in the State are not in a position to return money to depositors has led to widespread concern. A crisis in the cooperative sector will lead to the collapse of the rural economy,” he said.
