Report on investigation of jewel loan irregularities awaited: Minister

‘Poll promise is being fulfilled despite severe financial crunch’

Published - December 31, 2021 06:34 pm IST

I. Periyasamy

I. Periyasamy

Despite a severe financial crunch, Chief Minister M.K. Stalin had kept his promise to the people to waive gold loans for people belonging to below povert line (BPL) category, said Cooperation Minister I. Periyasamy here on Friday.

Speaking to reporters, he said that during electioneering, the DMK had indeed said that it would waive loans to eligible people - for the needy and whose annual income was very less. Those who had pledged gold jewellery up to a maximum of 40 grams (five sovereigns) - with one Aadhaar card and one name - were eligible.

Knowing for sure that the AIADMK would lose the Assembly elections, the then CM Edappadi K Palaniswami and his deputy O. Panneerselvam had also announced the waiver scheme with a malicious intent. Now, the officials have unearthed a scam wherein a majority of the borrowers of jewel loans during the AIADMK rule were neither farmers nor had any cultivable lands.

Mr. Periyasamy said that the government had ordered a thorough probe and was waiting for the report. It is learnt that even some pawn brokers had pledged gold jewellery. For instance, a pawn broker in Tiruvannamalai had taken 622 loans by pledging five sovereigns of gold for each loan.

In many cases, people had taken loans after pledging fake jewellery. While the AIADMK claimed to have issued gold loans to 48 lakh borrowers across Tamil Nadu (40 grams each), only 22 lakh among them appeared genuine. The AIADMK is duty-bound to answer people as most of the beneficiaries belonged to their party.

Worried about the exposure, the AIADMK has started blaming the DMK and Mr. Stalin for the fiasco.

In crop loans too

Likewise, in crop loans issued during the AIADMK rule, there were many malpractice. For instance, by submitting documents for one acre, the borrowers had taken loans for seven acres and so on. The then government had issued ₹2,000-crore crop loans, which would also be probed, Mr Periyasamy added.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.