Raising a serious alarm in Parliament, Rajya Sabha MP G.C. Chandrashekhar exposed a massive financial scam involving five cooperative banks in Bengaluru’s Basavanagudi constituency, affecting nearly two lakh depositor families—many of them retirees who lost their life savings.
Citing alarming figures last week, he said that out of 42,551 cooperative societies in Karnataka, nearly 34.7% are operating at a loss.
He accused powerful individuals of misusing cooperative banks, calling the sector a lifeline for the middle and lower-middle class that is now plagued by corruption.
The five banks named in the scam are Guru Raghavendra Cooperative Bank, Vasishta Cooperative Bank, Souharda Cooperative Bank, Nagarathna Cooperative Bank, and Guru Sarvabhauma Souharda Credit Co-operative Bank.
Chandrashekhar alleged that politicians and their relatives had taken loans worth Rs 100–150 crore from these banks and failed to repay even after 10–15 years. “This is betrayal of the highest order,” he said.
Despite the Karnataka government handing the case to the CBI, no progress has been made. Calling it a systemic failure, Chandrashekhar demanded swift Central Government action and punishment for the guilty. “Who will hear the cries of these common people?” he asked.
