Kerala Congress Congress vice-chairman P.C. George has called on Chief Minister V.S. Achuthanandan to order a high-level inquiry into alleged financial irregularities and dealings that have left the Kerala Rubber Co-operative Ltd. (Rubco) in a ‘debt trap’.
Mr. George said in a press conference here on Friday that though the products of Rubco had good demand in the market, the co-operative society had not been able to make any profit since 1999.
He said that the company which incurred a loss of Rs. 531.57 crore between 1999 and 2006 was now gripped by a financial liability of Rs. 367crore.
He said that the Chief Minister should order an investigation into the irregularities and financial dealings.
Action be taken against chairman and managing director of Rubco for their failure to repay the loans the company had been sanctioned, the Kerala Congress leader said.
He also alleged financial irregularities on the part of co-operative banks that had released huge funds to Rubco as loans while taking stringent action against common people for their non-payment of loan amount.