TN finds irregularities in gold loan scheme

Chennai: Tamilnadu government has ordered to recover gold loan amounts along with interest from those who have borrowed money from different cooperative banks from the same family.

Sources said that the government has found out that members from the same family have got gold loans from different cooperative banks which is against the rules. It is said they did this based on expectation that the government would waive off the loans.

The government has ordered to take necessary measures to recover this loan amount and has also asked to initiate legal action against defaulters.

A circular in this regard has been sent to all zonal and cooperative registrars.

It may be noted that Chief Minister M K Stalin had earlier announced a waiver of  cooperative jewel loans up to five sovereigns per family.

Making a statement under Rule 110 of the Assembly, he said an estimated cost of Rs 6,000 crore will be allocated for those who obtained gold loans in cooperative banks.

‘Economically backward loan takers and eligible beneficiaries would be provided a jewel loan waiver for up to five sovereigns in the state at an estimated cost of Rs 6,000 crore’, Stalin announced in the Assembly.