ALAPPUZHA: The failure of Kerala State Rubber Cooperative Ltd. (Rubco) to repay liabilities to the tune of Rs.100 crore it had with five district cooperative banks (DCB) in the State, which granted it loans had landed the banks in dire straits, the All Kerala District Cooperative Bank Employees' Congress (AKDCBEC) has said.

Sooranad Rajasekharan, AKDCBEC State president and K. Rajeevan, general secretary, said the Rubco had not made any move to repay loans even after the period for repayment ended.

Mr. Rajeevan said the DCBs extended loans to Rubco because of the pressure exerted by various Finance Ministers of the State in the past. Mr. Rajeevan said the Rubco had not publicised its balance sheet in the last five years.

The AKDCBEC demanded that the State Government should intervene immediately to publicise the balance sheet of Rubco. The organisation also demanded that the State Government take steps to pressure the NABARD to reimburse completely the agricultural loans given by DCBs.

The AKDCBEC noted that DCB's had to provide loans to primary cooperative societies at the rate of 3.5 per cent interest, which in turn provide loans to the tune of Rs.1 lakh to farmers at the rate of five per cent interest. While the NABARD reimburses only a small part of the losses incurred by DCBs by giving loans at a very small interest, the banks themselves had to find the remaining amount to cover up the losses and that was affecting their smooth functioning, noted the AKDCBEC.

The AKDCBEC also demanded that the State Government sign a memorandum of understanding with the Reserve Bank of India in order to gain access to the aid of Rs.14,839 crores allotted by the Union Government for the rejuvenation of cooperative sector in the State as per the recommendation of the task force on cooperation headed by A. Vaidyanathan appointed by the Union Government, the AKDCBEC said.

The State conference of the organisation, which concluded here on Monday, elected Sooranad Rajasekharan as the president and K. Rajeevan as general secretary.

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