KOCHI: Baharul Islam, belonging to the village of Ranguloo in Nagaon district in Assam, was once a happy customer of the Perumbavoor Urban Cooperative Society and its daily collection scheme, around three years ago.
“We don’t have a proper system in our state. I used to hand over Rs 500 every day to the bank collection agent from the Rs 1,000 I earned from my job as a concrete block-laying worker. Of the remaining amount, I regularly sent a part to my family and met my daily expenses. I never knew that my sole saving of Rs 2,27,500 invested in the society will be blocked like this,” a dismayed Islam told TNIE.
The 32-year-old dreamt of building a small home in his village where his wife, sister and a one-and-a-half-year-old child now live in a hut made of bamboo and sheets. “Will I get my savings back? Will my family have a home,” he asks.
Islam is among 400-odd people who invested a few thousands to over Rs 2 core with the bank. They are now clueless about the status of the investment. The society, established in the 1940s, is in the headlines after repeatedly failing to return savings and collect dues from loan defaulters, with the dues amounting to over Rs 100 crore.
Some 16km away, people who have invested with the Angamaly Urban Cooperative Bank have similar stories to share.
The joint registrar (general) of the Ernakulam District Cooperative Society has found that widespread violations have taken place in the society, amounting to over Rs 100 crore.
Given the circumstances, investors with the cooperative societies in Ernakulam district are demanding an improved system to curb such malpractices.
“As per the cooperative society norms, no loan of more than `20 lakh should be given on a property. The Perumbavoor board has given 39 loans amounting to Rs 7.8 crore on a single plot of land that was already mortgaged in another banking institution,” said Mayinkutty N A, secretary of the Nikshepa Samrakshana Samithi, a body formed by the investors, listing out cases.
The Samithi has already reached out to the aggrieved investors in the Angamaly society.
On Monday, they also submitted nominations for the election to the 11-member director board, scheduled for
November 24. “We intend to save everyone’s hard-earned investment, bring the culprits to light, and continue the legal battles against law-breakers,” Mayinkutty added.