Microfinance Corruption: VS Files Plea Against Vellappally

V S Achuthanandan filed a petition in the Vigilance Court here against SNDP Yogam general secretary Vellappally Natesan.

THIRUVANANTHAPURAM: Opposition leader V S Achuthanandan on Friday filed a petition in the Vigilance Court here against SNDP Yogam general secretary Vellappally Natesan and three others, seeking an inquiry into the alleged corruption in the microfinance scheme under the SNDP.

He appeared in person at the Vigilance Court and filed the petition. Coming out of the court, he said that the poor people and the state had been betrayed by Natesan. “An interest of 18 per cent interest was levied from the people for the loan that was taken from the Kerala State Backward Development Corporation, which should only be given at less than five per cent,” he said. 

Apart from Natesan, who is the first accused, the other accused in the petition are SNDP Yogam president M N Soman, SNDP Yogam Microfinance state coordinator K K Mashesan and former KSBDC managing director N Najeeb.

In the petition, Achuthanandan said that Natesan and others had abused their position and power and misused public money provided by the state for the welfare of poor people. As per the law, disbursement of loan was subject to a maximum of five per cent interest, but the accused persons charged exorbitant interest from the persons who availed of the loans. Moreover, he also alleged that the amounts collected as repayments from the members were not remitted in the banks or accounts concerned. Those were revealed during the inquiry conduced by the KSBDC.

He also alleged that thousands of transactions took place in the name of the members of SHGs without their knowledge. In several of the cases, loans were sanctioned in imaginary names, he alleged.

They got Rs 15 crore from the KSBDC. Several nationalised banks also gave loans on the basis of the guarantee given by the SNDP to the SHGs. The accused furnished false and forged utilisation statement to siphon off public money, he alleged. They had also credited bogus entries and false and fictitious names in the utilisation statement submitted to the KSBDC.

Noting that the SNDP Yogam was formed for the uplift of socially backward classes, he alleged that the present leadership of the yogam, including Natesan and others, were acting against the interest of the yogam and against the interest of the state by indulging in criminal acts of misappropriation and fraud for making pecuniary advantages.

Apart from Najeeb, the role of present managing director B Dileep should also be probed. Dileep, who had retired from service on May 31, 2015, had been given extension under the influence of the Welfare of Scheduled Castes and Backward Castes Minister A P Anil Kumar. When the case would be investigated, their corrupt and illegal activities would also come to light, he added.

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