Thiruvananthapuram: Malpractice and irregularities found in the Karuvannur Service Cooperative Bank describe vulnerabilities in the current rules to have traffic jams at the Cooperative Bank.
In accordance with the sources of the Department of Cooperation, many banks and cooperative institutions use practice expanding several loans on the same property security by citing government rules in this regard.
To make loans from cooperative banks it is easier, the government has extended (since June 23, 2004) Provisions to issue a loan on the property by implementing documents (GEHan) approved a mortgage property before the Bank’s authority, without the need to visit the appreciation sub-office to cook it-provision Aral will apply only to start the Hortgoge Bank.
In accordance with this amendment, Gehan-which means special tariffs on moving or non-moving properties – can be executed for the sake of state / district cooperative banks, primary agricultural credit communities, primary housing communities, urban cooperative banks or other major cooperative communities deal with credit activities only with The declaration in writing by the borrower, to secure advanced money payments or to advance by loan, which will have all the characteristics of valid mortgages.
“Since the land mortgage becomes easy, institutions begin offering many loans on the same property by revising property values ​​every time according to loan requirements.
There is nothing in the law that is said that many loans can be approved on one property as a single loan obligation itself extends to All properties are pawned, “said a senior official in the department.
The Nine Member Committee report appointed by the Government of Fraud Karuvannur has made observations that ‘can be seen that property value has been forged in most of the assessment report.
The land value of a property has been adjusted and corrected according to the loan disbursed through the property ‘.
As many as 52 illegal loans, with RS 215.71 Crore tones, approved by promising eight properties, the further committee was found.
Officials also show other contradictions in the round issued by the department and in the form determined to prepare gan.
According to the circle issued by the Cooperative Community Registrants on July 25, 2007, Gehan can be considered a mortgage document such as other documents and new loans can be approved at the same geghan without executing again, when previously the loan was closed after sending contributions.
However, Form 8 (a) of the cooperation rules say that if the borrower pays all loans, Gehan will be ineffective.
“The circular is contrary to the rules when the rules clearly say that for every loan, different gans must be executed as the number of loans is closed, the gan validity executed for the loan will also end,” the official said.
The source says that this can cause a big chaos if asked legally.
“Cooperatives issued a fresh loan without executing GEHan every time.
If asked legally, the rules will win over circles and gehan such will become infructugia, and there will be hundreds of loans throughout the state that will be loans that will be channeled through no property mortgages Valid, “added the source.