More steps to protect investors in crisis-hit coop. societies: Vasavan

Funds will be raised and the Investment Guarantee Board reconstituted to help investors in cooperative societies that are on the verge of collapse, Minister for Cooperation V.N. Vasavan has said. Addressing the media here on Thursday, he said that rules would have to be amended for the purpose. A decision was taken to this effect two weeks ago. Earlier, investors in liquidated financial institutions alone were offered assistance, he said.

On Karuvannur

A special package had been devised for investors in the scam-hit Karuvannur Service Cooperative Bank in Thrissur. Some investors were recently given ₹4.5 lakh each. To help others, a special overdraft scheme had been arranged from Kerala Bank. Help would be provided from the investment guarantee scheme and risk fund scheme.

Asked about the proposal to form a consortium of cooperative societies and Kerala Bank to bail out the bank, Mr. Vasavan said that the Reserve Bank of India had raised some objections to it. “Had it been formed, the investors would not have had to face problems now,” he said. Mr. Vasavan said he was not aware of the case of a woman investor who died recently after she was denied a return of her deposit for medical treatment.