THIRUVANANTHAPURAM: Cooperation Minister VN Vasavan has said cooperative banks will accept land surveyed for the SilverLine project as loan surety. “There were two incidents in which cooperative banks refused to accept such land. In both cases, officers have been apprised of the situation and the issues were resolved,” he said. A directive has been given to cooperative banks not to reject such land.
Vasavan said the bank officers in the two cases were under the impression that survey stones were laid for acquiring land. “In fact, the stones have been laid for social impact study. More steps are needed for acquiring land. The final alignment will be fixed after environmental impact study and survey. Notices 4(1) and 6(1) will be served before the takeover. The owners who give up land will be given four times the market price, which can be used for repaying loans. Banks which accept such land have more assurance on getting their money back,” he said.
On recent evictions as part of arrear collection of cooperative banks, the minister said: “Banks have been directed to avoid attachment of the residence of the loanees. In essential cases, it may be done after arranging a suitable house for the inhabitants,” he said.
Vasavan said he has sought a report on the incident in which the Muvattupuzha Urban Cooperative Bank sealed a house after evicting two minor girls when their parents were in the hospital. “Cooperative registrars have a limited role in the functioning of urban cooperative banks.
The registrar has administration-related responsibilities and banking activities are under the purview of the Reserve Bank of India. RBI directions were followed by the officers. The eviction was based on the provisions of SARFAESI Act. The loanee could not be contacted despite repeated attempts. The bank president had asked the officers to return the house key soon after he received information that the loanee was under treatment. More details will be revealed after getting the report,” he said.
Recent evictions
Banks have been directed to avoid attachment of the residence of the loanees. In essential cases, it may be done after arranging a suitable house for the inhabitants,