KOLLAM: The climb up the stairs to the head office of the Kolloorvila Service Co-operative Bank at Pallimukku has become a painful routine for hundreds of depositors, here. Many of them are senior citizens, retired government employees and ex-servicemen who have spent years to ensure decent life savings.
Inside the bank, anxious customers queue up every day, while raised voices echo through the hall as frustrated depositors demand answers. Outside, several elderly people wait their turn, struggling to climb the stairs in the hope that this visit may finally bring them their money.
According to depositors, more than 200 people have been affected by the financial crisis. Around 100 affected depositors have formed a WhatsApp group to coordinate legal action, share updates and support one another. A retired government employee said he had deposited `15 lakh in the bank eight years ago. Since then, he has neither received interest on the deposit nor been able to withdraw the amount despite repeated requests.
“I now need the money for my son’s education. Every time I approach the bank, they ask me to come back later. I have been left begging for my own money,” he said. An ex-serviceman said he invested `10 lakh in the bank and has been running from pillar to post for several years to recover his deposit.
For Kunjumon C J, who earlier lived in Chavara and has now shifted to Changanassery, distance has only made matters worse. “I cannot visit the bank regularly anymore. I came to know about many developments only through my friends. They don’t even pick my calls now, “ he said.
Gibson Fernandez said the crisis has affected his entire family. He said he had deposited ,`16.5 lakh in his wife’s name, while his brother and sister had deposited `24 lakh and `22 lakh, respectively. None of them has received the money they have been seeking for years.
A visit to the bank’s Polayathode branch presented a contrasting picture. The large building appeared almost deserted, with only three staff members present and hardly any customers. One resident recalled the plight of a depositor whose son was undergoing cancer treatment.
“He desperately requested the bank to release his money for his son’s treatment. Only a small portion was given. He stood here crying helplessly,” the resident recalled. Depositors also alleged that the president of the board was rarely available for a meeting. They claimed their visits to his residence yielded no response and that phone calls often went unanswered.
According to the cooperative bank’s audit report in 2020-21, irregularities to the tune of `120 crore were found a year ago. The crime branch also arrested the bank president and a director board member one year ago. The report also flagged irregularities in sanctioning of loans, including loans being approved based on inflated market values of properties offered as security. The bank was under a Congress-led governing board during the period when the alleged irregularities took place.
Responding to the allegations, bank’s president Anzar Azeez said, “We have already repaid around `98 crore to depositors. We are only requesting more time to repay the remaining amount. We have not committed any corruption as alleged”.