Haryana govt has debarred cooperative loan defaulters from contesting the Panchayati Raj elections. The move is expected to boost loan recovery in a big way as contestants will have to repay loans to fight the upcoming vote, reports Times of India.
A source is quoted as claiming Haryana state cooperative apex bank alone will be able to recover Rs. 300-400 crore.
Sources say in Karnal district alone about Rs 1.90 crore of cooperative loan has been recovered.
In Haryana, cooperative loan default is pegged at about Rs 4,500 crore which has been overdue for the last several years.