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.
“It is not only employees who are responsible for the ₹300-crore irregularities that have come to light in the Karuvannur bank, there is a high-level conspiracy behind the scam. The investigation agencies in the State have failed to bring out the extent of the racket. The government should hand over the probe to the CBI.”
Mr. Satheesan warned the government that Kerala could not absorb the impact if the cooperative sector lost its credibility. The letter also said the Opposition would back all efforts by the State to protect the sector.
Meanwhile, the CPI(M) State secretariat issued a statement accusing vested interests of blowing isolated incidents out of proportion to cast a slur on the cooperative movement in Kerala. It also alleged that a section of the media was kowtowing to the Sangh Parivar agenda to sabotage the sector. Noting that cooperatives in the State had deposits totalling ₹2.5 lakh crore and and had given as much as loans, it said the societies had a major stake in the development of the State and called for heightened vigil against attempts to torpedo the institutions.
CPI(M) bleeding cooperatives: K. Surendran
BJP State president K. Surendran accused the CPI(M) of using cooperatives to loot the public even as the Congress was turning a blind eye to the issue. Addressing a workshop for BJP councillors in the Corporation, he said UDF leaders had stashed away their ill-gotten wealth in CPI(M)-controlled cooperatives. The LDF and UDF were hand-in-glove in looting cooperatives, he said, adding the BJP would mobilise depositors against the organised plunder.
The Miscellaneous Cooperative Societies Association said many cooperatives were facing a crisis due to default of loan repayments and the government’s efforts to minimise the burden of creditors through one-time settlements, loan relief schemes, and long-term ban on loan recovery. A press note quoting association president S. Jayendran Nair and general secretary T.S. Vijayakumar called for steps to punish those behind the loan scam while remaining vigilant against moves to sabotage the cooperative movement in the State.
