Tamil Nadu - Madurai   

`Coop. movement, a vibrant mechanism'

Staff Reporter

Imbibe the finer principles of social accountability, elected members told

MADURAI: Persons elected to various cooperative bodies should imbibe the finer principles of social accountability and supplement efforts of the Government in keeping up with its social commitment of eradicating economic backwardness, the Assembly Speaker, K. Kalimuthu, has said.

"It is the duty of elected representatives to ensure the Government succeeded in making the cooperative movement a dynamic force but not indulge in activities that crippled the movement in any way," he said referring to the embezzlement by the elected members in some cooperative bodies.

Speaking at the 52nd All India Cooperative Week Celebrations held here on Sunday evening Dr. Kalimuthu said the cooperative movement was a vibrant mechanism to bring about key socio-economic changes. Realising this, the Government pumped in funds and sustained the cooperative bodies by waiving off loan amount and sometimes the interest on loans provided to farmers, from time to time. This exercise assuaged the conditions of the farming community, which encountered losses on account of the vagaries of nature, he said.

There were 10,947 cooperative bodies and 27 Central Cooperative Banks in Tamil Nadu, which boasted of providing a low rate of nine per cent interest on loans and whereas the other States provided 12 per cent interest, he said.

Disbanding of MUCB

The Madurai Urban Cooperative Bank was disbanded on account of loses it incurred due to `gross misappropriation.' Despite knowing pretty well that the bank possessed a net asset of Rs.40 crores, the office-bearers favoured loans amounting to Rs.51 crores to 136 persons. Though several among the beneficiaries possessed property worth Rs. one lakh, they were granted Rs.10 lakhs as loan. None repaid the loans. Confiscation of property did not yield results because the beneficiaries possessed property worth only Rs.one lakh, he said. "If this continued all the institutions would become sick and the movement would come to naught soon, the Speaker said.

Underscoring the importance of sustaining the cooperative movement, he said farmers, small traders and individuals apart the cooperative bodies provided financial assistance and empowered women who networked themselves under 75,344 self-help groups.

The cooperative banks disbursed Rs.71 crore worth jewel loans and granted loans amounting to Rs.one crore to the farmers in the district, said the Collector, D. Raajendiran, who presided over the function.

He informed that besides giving away Rs.1.81 crore as loans to the SHGs, the banks distributed Rs.15 lakh worth loans to help start small trade. The MLAs, N. Nanmaran and Valarmathy Jebaraj, Madurai Regional Joint Registrar, K. Sivaji, and General Managing of Central Cooperative Bank, Malaichamy, were among those who spoke.

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