Subsequently, the chairman of the KPACB has been removed from the post, pending an inquiry.
The Kurumbur Primary Agriculture Cooperative Bank, having 3,800 members, had given agriculture and personal loans to over 500 members. When the officials from the Central Cooperative Bank checked the records of the KPACB and the jewels mortgaged against the loans given in the wake of the State Government’s announcement about waiver of loans given up to 5 sovereigns of mortgaged ornaments, the discrepancies were found.
After their inquiry with the Sub-Registrar of Cooperative Societies confirmed a large-scale scam in giving agriculture and personal loans by KPACB against pledging of gold ornaments, they found that 261 of the 548 bags containing mortgaged gold ornaments were missing.
In other words, ₹ 2.03 crore had been given as loan without gold ornaments being mortgaged in the KPACB, the inquiry revealed.
Subsequently, chairman of KPACB Murugesa Pandian was removed from the post while secretary Devaraj placed under suspension.
The depositors and those who had mortgaged their gold ornaments in the KPACB are giving complaints in writing to the officials probing the scam as they are fearing for the safety of their deposits and the mortgaged valuables.
“A formal complaint with the police…