Karuvannur bank scam: Kerala govt to raise Rs 50 cr to settle depositors

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Karuvannur bank | Photo: Mathrubhumi

Kochi: The Kerala government informed the High Court that a special scheme has been formed to overcome the crisis of Karuvannur bank scam. At least Rs 50 crore will be raised for this. The government assured to return the deposits of the customers who are in need of money immediately. It has been decided to form small investment schemes to improve the operations of the bank.

Justice TR Ravi directed the government and co-operative department registrar to file the report elucidating the details of the proposed scheme, including procedures to raise funds, within two weeks.

The court has been considering the petition filed by the depositors seeking to direct the authorities to pay back their deposits. Special government pleader PP Tajudeen said that the high power committee convened under the Minister of Co-operation has formed two projects for revamping the co-operatives under stress. By prioritising the crisis of Karuvannur bank, a short-term project has been initiated for the bank. The committee also estimated that the issues could be overcome by raising Rs 40 crore. More sales officers will be appointed to get back the loans issued.

The court also considered a petition regarding cases in which stay order was obtained against auctioning the properties of debtors who refrained from paying back the loan amount. The court had earlier directed the borrowers to pay at least a certain amount. The court cancelled the stay orders of the defaulters.

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