MADURAI: Tamil Nadu Minister for Co-operation, I Periyasami, while addressing the media persons said a total of 13.40 lakh of gold loans were waived off on Thursday. Following the announcement made by the Chief Minister MK Stalin for a waiver for gold loans, obtained pledging up to a gross weight of 40 grams (5 sovereigns) in cooperative sector banks, a total of 48,84726 gold loan applications were scrutinised.
“Of this, 13,47,003 loans were waived off, while 35,37,693 applications were ineligible for the waiver due to various reasons. An important distinction is that the State government promised to waive off gold loans below five sovereigns for one family and not for every individual from the family,” he said.
Adding that there are several irregularities found in issuing gold loans in many districts across the State, he said these irregularities include availing of loans by pledging ornaments that are not gold. “There has been a case where a person obtained 625 different gold loans worth Rs 1.25 crore by pledging jewellery below five sovereigns in Kanniyakumari. In another case, an individual obtained 641 gold loans worth Rs 2.01 crore by pledging jewellery below five sovereigns from different cooperative associations.
During the scrutiny in Thoothukudi’s Kurumbur Primary Agriculture Cooperative Bank, it was found that Rs 2.03 crore was disbursed without taking any gold collateral. Of the 500 bags containing mortgaged gold ornaments, 261 bags are missing,” he added.
Citing these cases, the co-operation minister said these irregularities were found to be carried out to obtain the gold loan waiver announced by the Tamil Nadu government and to obtain loans from cooperative banks with low interests and lend it for exorbitant interests. The private mortgage entities also pledge the gold ornaments in cooperative banks to source multiple incomes.
Civic and criminal cases are being filed against those involved in such malpractices, and departmental action is also being initiated against the association members, the co-operation minister said adding that the gold loan waiver applicants have also been given a written explanation as to why they were not eligible for this facility.