Debate intensifies over waiver of cooperative bank loans – The New Indian Express

By Express press service

CHENNAI: Former minister and AIADMK member Sellur K Raju on Wednesday urged the state government in the Assembly to take action against those who committed irregularities while forgoing loans from co-operative banks. While responding to the grant application for the Department of Cooperation, Minister I Periyasamy said that a huge sum of money had been scammed in the name of exemption from cooperative loans.

He then listed the loan amount above the eligible limit that has been disbursed by the major agricultural cooperative banks. “Loans totaling Rs. 516 crore were disbursed in violation of cropland eligibility criteria, and among them, Rs. 503 crore were disbursed in Salem, Namakkal and Erode alone,” he said. -he declares.

Periyasamy further added that some loans have also been disbursed for drylands. In addition, many loans disbursed after the due date were also cancelled. “Because of this clear violation of the rules, many ineligible people have been granted the loan waiver. Many ineligible people have also been granted a gold loan waiver,” he added.

Speaking, former Corporation Minister Sellur K Raju said that his party government did not ask anyone to commit irregularities in the loan waiver process. “The state government should take action against those who violated the law in this regard,” he added.

The panel will soon set up the right cooperative department

Minister I Periyasamy announced on Wednesday that a committee would be formed to straighten out the functioning of the cooperative department. During the reply following the debate on the grant applications for the Cooperation Department, he also announced various other reforms for the sector:

Tuition fees for students of cooperative technical institutes will be borne by the government

Direct supply centers will be set up in all districts. Steps are already taken to launch 68 DPCs in 19 districts

Interest rates for loans below Rs3 lakh for women self help groups will be reduced from 12% to 7%

Loans will be granted to widows and destitute women at an interest rate of 5% through cooperative societies

Will boost sales of Mangalam turmeric, produced by the Erode Farmers Cooperative Society

Sales of tamarind from Pennagaram region will be promoted

The number of cooperative medical stores will increase from 303 to 600 in the next five years

A college of arts and sciences will be established in Dindigul

A high-level panel will be formed to study the functioning of the PDS cooperative stores

70 ATMs on behalf of cooperative banks will be installed across the state

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