Recovery action begins against cooperative bodies

The CPM district unit, already facing an internal crisis because of factional infighting, is now fishing in troubled waters as the Ernakulam District Cooperative Bank (EDCB) has initiated recovery proceedings against many cooperative bodies controlled by the party.

Published: 18th October 2013 11:23 AM  |   Last Updated: 18th October 2013 11:23 AM   |  A+A-

The CPM district unit, already facing an internal crisis because of factional infighting, is now fishing in troubled waters as the Ernakulam District Cooperative Bank (EDCB) has initiated recovery proceedings against many cooperative bodies controlled by the party. EDCB president N P Paulose told ‘Express’ that notices had been issued to the governing bodies of A P Varkey Medical Mission Hospital and Mithra, a retail supermarket chain.

The hospital was opened as a tribute to the former district secretary of the party, A P Varkey, who had played a major role in promoting the Communist movement in the district. But it is said that the hospital could not generate expected revenue due to several unseen hurdles.

“We have issued notice to the top management of the hospital. Including interest, its present dues are estimated to be at `8 crore,” Paulose said. The actual loan amount was `4 crore.

“After issuing the notice, the top management of the hospital contacted us. They said that they were ready to settle the loan. However, they requested us to waive the interest. We will discuss the proposal in the upcoming director board meeting on October 26.

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