Karuvannur Cooperative Bank: Withdrawals upto Rs 1 lakh possible from today

Image: Onmanorama

Thrissur: Granting a respite to those who invested in the scam-hit Karuvannur Service Co-operative Bank, the government-appointed administrative committee has announced that withdrawals can be made from November 1.

Members of the committee told mediapersons here on Monday that they are committed to implementing the first phase of the package within the next 30 days.
According to the committee, depositors will be able to withdraw a maximum of Rs 1 lakh against matured deposits from November 1.

“As per the package, from November 1, investors are allowed for full withdrawal or renewal against the matured investments between Rs. 50,000 and Rs.1 lakh,” said PK Chandrasekaran, chairman of the administrative committee.

“From November 11, depositors who hold matured fixed deposits up to Rs 50,000 will be allowed full withdrawal of the amount or renew the same as per their requirement. At the same time, starting November 20, those who hold savings accounts will be able to withdraw up to Rs 50,000 from all the branches of our bank. From December 1, those with fixed deposits above Rs 1 lakh will be paid a certain percentage of interest and allowed to renew their deposits,” Chandrasekaran said.

Depositiors queue outside Karuvannur Bank. File photo: Manorama

90% of savings account holders to benefit
The committee is hopeful that the package will benefit 21,190 of the total 23,688 savings bank depositors as they will be eligible for complete withdrawal. The remaining 2,448 could withdraw their deposits partially. Likewise, 3,770 out of the 8,049 fixed deposit holders can also withdraw their amounts and interest or renew their investments.

According to the Thrissur Deputy Registrar of the Department of Cooperation the frauds were perpetrated in two five-year terms – from 2011 to 2016, and from 2016 to 2021, but the Directorate of Enforcement (ED) that is probing the scam has claimed the money was siphoned off since 2010.

According to the ED, the size of the scam is Rs 103.3 crore though the Thrissur Deputy Registrar of the Department of Cooperation pegged the scam at Rs 113 crore.

The authorities have claimed that they have returned about Rs 76 crore to the depositors after the scam broke out. In the same period, the bank also collected Rs 80 crore from the defaulters.

An intensive repayment campaign is being carried out to recover outstanding loans. Loan adalat for the same has been organised on November 3 and 4. The authorities aim to raise at least Rs 50 crore before December 31.

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