Cooperative bank to be tough with defaulters

Auction of assets after July 15 to overcome financial crunch

Staff Reporter

ANANTAPUR: In a bid to overcome its financial crunch, the Anantapur District Cooperative Central Bank (DCCB) is planning to crack a whip on big and wilful defaulters with the auction of their mortgaged assets. The exercise is likely to begin after July 15.

There are 175 big and wilful defaulters in the DCCB, including a few former chairpersons, a few key leaders of the Congress, the TDP and the BJP. Together, they owe about Rs. 70 crores to the cooperative bank, including principal amount and interest, after reschedule.

Official sources told The Hindu on Tuesday that a few of the defaulters had been due to the bank since 1971. Besides, another Rs. 30 crores was blocked in short-term (crop) loans with customers of the bank. Owing to poor repayment of loans, the bank has not been getting refinance facility from the National Bank for Agriculture and Rural Development for the last four years.

The outstanding dues have forced the Government to propose closure of 122 out of 212 PACS in the district as part of the cooperative reforms.

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