KOCHI: To settle all the claims at the crisis-ridden Karuvannur Cooperative Bank, the state government is in the process of finalising a package for which loans will be raised by pledging the bank’s assets. The government submitted so before the Kerala High Court on Wednesday when the depositors’ petitions seeking a return of their money came up for hearing. Senior government pleader P P Thajudeen said the cooperation minister had convened a meeting to work out a strategy for the revival of the bank.
The state government also said that it has decided to formulate a long-term plan for the revival and restructuring of the other crisis-ridden cooperative societies. “As per the short-term plan, the liquidity of the bank has to be restored and deposits returned to those who need money to meet their immediate requirements. It has been decided to raise funds from various sources to tide over the liquidity issues. The meeting assessed a requirement of Rs 40 crore to overcome the current crisis,” the pleader submitted.
The government has decided to avail a loan of Rs 25 crore from the Kerala Bank and Rs 10 crore from the Kerala State Development Welfare Fund Board, by pledging the Karuvannur bank property. The bank will also utilise Rs 2 crore from the reserve fund available. The meeting also decided to restart the monthly deposit scheme and gold loans to increase the current account of the society. The bank will put up a small savings deposit scheme to augment the availability of funds for day-to-day operations. A plan to monetise the society’s property, along with a fast-track mechanism, will be put in place by appointing a sufficient number of sales officers, the pleader submitted.
When the court said that appointing more personnel will invite further liability on the bank, the pleader pointed out the bank is not directly making the payment. The government also submitted that it expects Rs 50 crore to be realised thought asset monetisation within three months. The High Court extended the order directing the bank not to make any payment towards the deposits for the time being for the purpose of arriving at a reasonable prioritisation of repayment. But the court allowed the bank to make part payments in case of utmost necessity.
The counsel for one of the petitioners submitted that his requested for a return of the deposit to meet marriage expenses was denied. Similar issues were raised by two others who are in dire need of money. The court directed them to approach the bank individually in view of the court’s order and directed the bank to consider the request. The court also directed the government and the bank to report further developments on the issue and the funds available at the time to meet the depositors’ claims.
Co-op bank fraud case probe handed over to crime branch
Pathanamthitta: The district police chief has handed over the probe into the financial irregularities in Mylapra Service Cooperative Bank to the Economic Offences Wing (EOW) of the crime branch. District police chief Swapnil Madhukar Mahajan said that Adoor EOW of the crime branch would conduct the inquiry into the complaints against the bank. The depositors of Mylapra Service Cooperative Bank have been on a warpath since April demanding that the authorities return the money they deposited in the bank. The authorities had in April suspended bank secretary Joshua Mathew after the police registered a financial fraud case against him. The depositors also formed an action council to lead the agitation. The depositors alleged that though the bank authorities had assured them that their money would be given back to them soon, the bank authorities failed to keep their promise.
Loan of Rs 25 crore from Kerala Bank and Rs 10 cr from Kerala State Development Welfare Fund Board