Debate heats up on co-op bank loan waiver

During the reply on the demand for grants for the Cooperation Department, Minister I Periyasamy said that a huge amount of money was swindled in the name of cooperative loan waiver. 
Debate heats up on co-op bank loan waiver

CHENNAI: Former Minister and AIADMK member Sellur K Raju urged the State government in the Assembly on Wednesday, to take action against those who committed irregularities while waiving off cooperative-bank loans.During the reply on the demand for grants for the Cooperation Department, Minister I Periyasamy said that a huge amount of money was swindled in the name of cooperative loan waiver. 

He went on to list out how much loan amount above the eligible limit was disbursed by the primary agricultural cooperative banks. “Loans to the tune of total Rs516 crore were disbursed in violation of the cultivated land eligibility criteria, and of them Rs503 crore were disbursed in Salem, Namakkal and Erode alone,” he said.

Periyasamy further added that some loans were disbursed for barren lands also. Besides, many loans which were disbursed after the due date were also waived. “Due to this clear violation of rules, many ineligible persons received the loan waiver. A lot of ineligible persons enjoyed waiver of gold loans also,” he added.

Intervening, former Corporation Minister Sellur K Raju said that his party’s government had not asked anyone to commit irregularities in the loan waiver process. “The State government should take action against those who violated the law in this regard,” he added.

Panel soon to set right co-op dept

Minister I Periyasamy on Wednesday announced that a committee would be constituted to set right the functioning of the cooperative department. During the reply following the debate on the demands for grants for the Cooperation Department, he also announced various other reforms for the sector:

Tuition fees of cooperative technical institute students will be borne by government

Direct procurement centres will be set up in all districts. Steps already on to launch 68 DPCs in 19 districts

Interest rates for loans below Rs3 lakh for women self-help groups will be reduced from 12% to 7%

Loans will be provided to widows and destitute women at 5% interest through cooperative societies

Will boost sale of Mangalam turmeric, produced by the Erode Farmers Cooperative Society

Pennagaram area tamarind sales will be promoted

Number of cooperative medical stores will be increased from 303 to 600 within next five years

Arts and science college will be established at Dindigul

High-level panel will be formed to study functioning of cooperative PDS shops

70 ATMs on behalf of cooperative banks will be installed across the State

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