DINDIGUL: The Dindigul District Cooperative Department has initiated an inquiry following complaints over delays and reductions in jewel loans at the A-1291 Primary Agricultural Cooperative Society (PACS) in Mannavanur panchayat, Kodaikanal, over the past two months.
The society, one of the largest and oldest cooperative institutions in the hill region, was established in the 1990s and has over 2,000 members, predominantly farmers. However, members allege that since November 2025, the society has either refused to sanction jewel loans or drastically reduced the loan amounts, citing a shortage of funds.
A Bharathi, a farmer from Mannavanur, told TNIE, "When I approached the society seeking a loan of Rs 1.20 lakh against one sovereign of gold, the staff informed me that they could sanction only Rs 75,000. On questioning the reduction, officials said there were insufficient funds in the account and asked me to adjust to the lower amount. It is unclear why the loan value is being cut despite the high gold price."
Echoing similar concerns, another farmer, S Velmurugan, said he had pledged one sovereign on February 2, 2025, and received Rs 70,000.
"I have been paying the interest regularly. As gold prices increased to around Rs 1.36 lakh per sovereign, I planned to repledge it to avail an additional Rs 40,000 due to financial difficulties. But the staff told me there were no funds available in the bank," he said.
Members have also expressed apprehension over possible irregularities in the functioning of the society. They recalled a major financial misconduct case in 1996 when staff allegedly misappropriated several lakh rupees, leading to the society being sealed for six years before reopening in 2002.
Responding to the allegations, an official from the District Cooperative Department dismissed suspicions of foul play but confirmed that a formal inquiry has been launched.
“We will examine the society’s account books, receipts, deposits, and interest payments to depositors. We also need to verify whether fund allocation from the District Central Cooperative Bank (DCCB) across various loan categories has affected jewel loan disbursal,” the official said.