The Cooperation Department has ordered a departmental probe into allegations by ruling BJP MLAs and Ministers about gross discrepancies in the release of loans in a few Assembly constituencies in Kolar, Chickballapur, and Tumakuru districts and bribes being sought for the release of loans with zero per cent interest to farmers and SHGs by District Credit Cooperative (DCC) Banks and Primary Agriculture Cooperative Societies (PACS).
Minister for Cooperation S.T. Somashekar on Wednesday told presspersons that the department's Additional Registrar G.M. Ravindra had been asked to conduct the probe within 15 days and submit a report to him.
BJP Ministers, including Health and Family Welfare Minister K. Sudhakar, have alleged that members of SHGs and farmers in only a few Assembly constituencies in Kolar and Chickballapur districts received loans with zero per cent rate of interest. A few leaders had also complained that officials had been seeking ₹1,300 from each beneficiary for releasing loans of short, medium, and long terms, with zero per cent rate of interest.
The Cooperation Department has set aside a target of releasing ₹24,000 crore in 2022-23 for 33 lakh farmers and SHGs in the State.
Mr. Somashekar said there were 21 DCC banks and he had received complaints only from Kolar, Chickballapur, and Tumakuru districts with regard to discrimination in the release of loans to beneficiaries in some segments and alleged seeking of bribes for release of loans.
Madhuswamy’s comments
Responding to Law and Parliamentary Affairs Minister J.C. Madhuswamy’s comments made in an audio clip, Mr. Somashekar said that the probe would reveal whether the Law Minister’s comments were true or not. On August 13, an undated phone conversation between Mr. Madhuswamy and a Channapatna-based social worker went viral. The caller complained that the VSSN Bank was fleecing farmers. Mr. Madhuswamy was heard saying that Mr. Somashekhar had not taken action. “We’re not running a government here; we’re just doing management, pulling through for the next 7-8 months,” he is heard as saying.
Mr. Somashekar chaired a meeting with Tejaswi Surya, MP, and Ravi Subramanya, MLA, the Enforcement of Directorate, the RBI, and department officials to discuss ₹1,294 crore fraud in the Raghavendra Cooperative Bank in Bengaluru. It was decided that documents would be returned within 10 days to those defaulters who come forward to repay the loans of the bank. All documents have been seized by the ED for conducting a probe.
The meeting also discussed ₹272-crore fraud in the Souharda Cooperative Bank and bank officials have been told to commence the process of recovery of loans and accept deposits from the public. The court has vacated a stay order related to the bank.
