Cooperative banks have been directed not to decline land marked by stones for the SilverLine project as collateral for disbursing loans, Minister for Cooperation V.N. Vasavan has said.
The survey stones are being laid for the social impact study for the semi-high-speed rail project, not for land acquisition as is being mistaken, the Minister said on Monday.
Two incidents in which cooperative institutions declined to accept marked land as collateral were reported recently. They were apprised of the situation and the matter was sorted out. Several more hurdles had to be negotiated before land acquisition could be carried out for the project. The alignment would be finalised only after the environmental impact study and surveys and the issuance of the relevant notices, he said.
The Minister said a report had been sought on the incident where officials of the Muvattupuzha Urban Cooperative Bank attached a property allegedly by evicting two children. Necessary steps would be taken after studying the report, he said.
The Registrar of Cooperative Societies is responsible only for administrative matters in urban banks. Banking activities are controlled by the Reserve Bank of India.
The Muvattupuzha bank had invoked the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act to attach the property after attempts to contact the loanee. The bank president had informed him that that the key of the property was returned on coming to know that the loanee was hospitalised, Mr. Vasavan said.
