Tamil Nadu - Tiruchi   

`Compulsory deposit tactics' of banks flayed

Staff Reporter

TIRUCHI : Cane-growers who participated in the Farmers' Grievances Day meeting held here on Friday criticised the "compulsory deposit tactics being adopted by cooperative banks" in the district, by converting the payment due to the farmers into fixed deposits.

"The victims are those whose crop loans had been waived off by the State Government," they said.

The president of the Sugarcane Producers Welfare Association, Namachivayam, said the sugar factories effected the payment due to the farmers for the supply of cane through the cooperative banks under the tie-up system. But, the banks, without disbursing the same to the farmers, retained it as fixed deposits.

The State secretary of the Tamizhnadu Vivasayigal Sangam, R. Raja Chidambram, said that cane-growers in and around Thottiyam were the worst-hit.

The vice-president of the Cauvery Delta Farmers Welfare Association, G. Kanagasabai, wanted refund of loan dues repaid by farmers.

An official from the Tiruchi District Central Cooperative Bank said that as per a Government Order issued in July 2006, overdues as of March 31 had been waived off.

Repayments made between April and July had been converted into fixed deposits. The bank had sought a clarification from the State Government, as to whether the repayment could be refunded to them.

The Collector, Ashish Vachhani, who presided over the meeting, assured to look into the matter.

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