CPM wants CB-CID to probe jewellery loan scam

The CPM urged the State government to launch a CB-CID investigation into the alleged jewellery-loan scams.
Representational image. (File Photo)
Representational image. (File Photo)

CHENNAI: The CPM urged the State government to launch a CB-CID investigation into the alleged jewellery-loan scams. The party’s state secretary, K Balakrishnan, said reports of such scams surfaced following a letter by the cooperative registrar who audited the jewellery loans provided by cooperative banks.

He said one person obtained `1 crore through over 50 such loans. Such large sums in loan were provided to many individuals in the State in violation of the rule that jewellery loans can be given up to a maximum of Rs 20 lakh. Also, loans were provided against fake jewellery. Such activities would bankrupt cooperative societies, he added. 

Meanwhile, KMDK General Secretary ER Eswaran demanded that the State government dissolve the incumbent elected administrative bodies of cooperative societies and conduct fresh elections.

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