BHUBANESWAR: Chief Minister Mohan Charan Majhi on Thursday cautioned cooperative banks and primary agriculture cooperative societies (PACS) to stop the practice of evergreening of loans and update the accounts to prevent fraudulent activities.
Inaugurating the 71st All India Cooperative Week celebration at Samabaya Bhavan here, the chief minister said PACS and central cooperative banks play a crucial role by providing more than 60 per cent of the total crop loans in the state.
“There have been allegations of primary cooperative societies doing the unethical practice of evergreening (giving a fresh loan to avert default of an existing loan) agricultural loans to farmers. To stop this, it is necessary to update the accounts and records of these societies. The registrar of cooperative societies has been advised to keep a close watch on such financial irregularities and computerise the entire process,” Majhi said.
Describing PACS and LAMPS as one-stop solution for over 50 lakh farmer families of the state, he said these societies facilitate crop loans, insurance, fertilizers, seeds and pesticides. It is essential to strengthen these institutions as they support the marginalised and poor. These institutions also cater to artisans, weavers, fishermen, dairy producers and others involved in primary economics.
Targeting the previous BJD government, Majhi said the cooperative societies were converted to corruption hubs which will no more be tolerated. “I know there are disturbing elements who have been exploiting farmers and indulging in corrupt practices for a long time because no action has been taken against them. But that will not continue as we have Jharpada jail for those who are causing damage to the cooperative societies. We will not spare anyone who comes in between our work for the people,” he warned.
He further said the BJD government had failed to keep its promise of giving a bonus of Rs 100 to farmers over and above the minimum support price of paddy. The BJP will release additional input subsidy of Rs 800 per quintal paddy to farmers from Sohela.
The CM directed the Cooperation department to ensure that the upcoming paddy procurement from November 20 is carried out seamlessly without any inconvenience to the farmers.