Kayamkulam: District cooperative banks which provided loans under EMS Housing Scheme based on government order, are yet to get crores of rupees as interest. Under the scheme, state government owes Rs 75 crores to district cooperative banks alone. Compared to district cooperative banks, primary cooperative banks had loaned more money under the scheme. However, no estimates are available on the due amount to primary cooperative banks.
EMS Housing Scheme was established between the period 2008 and 2010 to loan money for homeless people to build houses. Under the scheme, the state government had given permission to local self-governing institutions to take loans for this purpose from district cooperative banks or primary cooperative banks.
According to the pact, the loan amount should be paid back by self-governing bodies in instalments and its interest amount would be paid by the government. Cooperative banks gave loans agreeing upon this concord. Majority of panchayats repaid the amount from the money set apart for housing projects in the annual budget. However, the government defaulted on the interest amount.
Due to the defaulted interest money, the non-performing assets of the district cooperative banks grew.
According to reports till March 31, 2019, government owe district cooperative banks, an amount of Rs 93.25 crores as interest to be paid. Out of this, Rs 18 crore was paid by the government. However, the interest amount on loans taken from primary cooperative banks is still defaulted.
Growing non-performing assets have troubled the primary cooperative banks too. Deputy Registrar of Cooperative Societies said that an estimate of interest due to primary cooperative banks is being prepared at each district.