Setting a praiseworthy precedent Odisha Cooperation Minister Surya Narayan Patro recently gave cheques worth of Rs 35.84 lakh to 59 depositors on behalf of Chhatrapur cooperative bank crippled by bankruptcy since 2012, reports New Indian Express.
The bank unraveled due to non-recovery of massive loans liberally disbursed and imprudent spending over the construction of a market complex in Chhatrapur.
According to sources, 2,346 persons had deposited over Rs 1.65 crore in the bank. As was expected, RBI cancelled the insolvent bank’s license. At that time, the bank had a cash balance of Rs 73.69 lakh and it had another Rs 30.15 lakh from Deposit Insurance and Credit Guarantee Corporation (DICGC). .
In the days that followed the State Cooperation department asked depositors to submit documents of their deposits. With 400 depositors submitting their documents, the State Government decided to pay their claims in a phase-wise manner.
Meanwhile, cooperation minister Patro has called on the loanees to repay their debts to the bank as also warned action would be taken against those involved in irregularities.