A nongovernmental organisation from Guruvayankere, Nagarika Seva Trust demanded a review of the functioning of Shri Kshetra Dharmasthala Rural Development Project (SKDRDP).
President of the trust Somanath Nayak on Thursday said the Government needed to come out with a report that reviewed the way project coordinators have made use of funds under various schemes for below poverty line families. “They (Government) can issue certificates for project coordinators praising their work only after such a review,” he said.
Mr. Nayak said the SKDRDP received a sum of Rs. 2,600 crore at an interest rate of 8.5 per cent from NABARD (National Bank for Agricultural and Rural Development) and other banks while lending the same to self-help groups at a higher rate of 16 per cent. Money charged in excess of 12 per cent interest charged by nationalised banks should be returned the beneficiaries, he said.
Dharmadhikari of Sri Kshetra Dharmasthala Veerendra Heggade recently defended the 16 per cent interest. Mr. Heggade said the SKDRDP has been permitted by the Reserve Bank of India to charge interest at 24 per cent.
Part of the amount collected as interest goes towards establishment expenses and providing furniture for schools, Mr. Heggade said.