What Actions Are Being Taken Regarding Deposit Losses in Cooperative Banks?

Kochi, June 5 (NationPress) In recent years, numerous cooperative banks in the state have collapsed, leading to a surge in complaints. On Thursday, the Kerala High Court voiced grave concerns regarding the struggles faced by depositors and highlighted the influence of political parties.

Justice Devan Ramachandran, presiding over cases related to co-operative societies, remarked that individuals utilizing these institutions in Kerala frequently find themselves unable to reclaim their funds.

"Kerala stands as the top state globally in this regard. You (the cooperative bank) will not return the funds. Individuals like you (depositors) who place their money and other assets in cooperative societies face considerable financial loss. There is no doubt about this," he stated.

"Even now, individuals continue to deposit in cooperative societies, often as a demonstration of loyalty to their political affiliations. Until this practice persists, no real change can occur. No court can assist you, nor will any solution arise while the system operates this way. You are at risk of losing your money," he commented.

Justice Ramachandran subsequently likened these cooperative banks to "blade companies," a local term in Kerala referring to moneylenders.

"I am genuinely troubled by the situation unfolding in my state. I have a deep affection for this place and can foresee the direction it is heading. It is easy for judges to dismiss these issues by suggesting alternative resolutions, but I refuse to do so because I empathize with the ordinary citizens before me. There is a glaring lack of support from stakeholders for the high court. If a judge rules in favor of a common individual, they face accusations of political bias," he expressed.

He remarked that if Kerala were a genuine welfare state, the government would intervene to assist those who have lost money to cooperative banks. "The reality is that you (the cooperative bank) have squandered the hard-earned savings of the populace. A welfare state should have acted. Why do the authorities display such a lack of compassion?" he questioned.

The court made these remarks while reviewing a petition from the Chandanapally Service Cooperative Bank against an order mandating it to return the funds from the fixed deposit of Rosamma Rajan.

The bank attributed its financial woes to the government and its agencies, which failed to recover money lost due to misappropriation by its former Secretary.

"The ordinary citizen lacks support in this state. You (the petitioner) are labeled as a common individual. Perhaps if you align yourself with a political party, your chances of recovering your money would improve. How many people in Kerala are suffering because they cannot retrieve their fixed deposits? We feel powerless now," added the judge.

These comments follow the recent filing of a final charge sheet by the Enforcement Directorate concerning a scam at the Thrissur-based Karuvannur Cooperative Bank, implicating several leaders including CPI-M's K. Radhakrishnan and legislator A.C. Moideen.