Kochi: The Kerala High Court has said that unless authorities take steps to ensure that depositors' requests to return money are honoured, people's trust in the co-operative banking sector will be "seriously diminished".
Justice Devan Ramachandran said that people losing confidence in the co-operative banking sector would have a deep "prejudice" on the state, "especially when the present financial position is not as satisfactory as it should be".
"...withdrawal of fixed deposits by co-operative banks is an essential condition of a healthy financial scenario; and its violation will certainly create unrest in the minds of individuals and prevent them from trusting such banks in future." The court said in its order of June 13.
The court's observations came while hearing petitions from depositors seeking return of their money in various co-operative banks in the state.
The court said during the proceedings that there has been no significant progress in the cases since the last hearing on May 21 as "none of the respondent-banks has intimated adequate payments to the various depositors.“To ensure that deposit requests are not violated would seriously undermine public confidence in the co-operative banking sector.
Justice Ramachandran said, "This would not be for the benefit of the State, but to its deep prejudice, especially when the present financial position is not as satisfactory as it should be."
The state government said during the hearing that it is devising ways, including amendments in the law, to ensure timely return of depositors' money when they ask for it back and a week to inform the court about the steps taken. Asked for time. , ,
One of the defendant banks – Kumpalampoika Service Co-operative Bank – told the court that it had returned 40 per cent of the deposits, while another bank – Kizhathdiyur Service Co-operative Bank – claimed that it had already returned about 25 per cent. Has returned. Has distributed. Has paid crores of rupees to its depositors.The court said that the delay in distribution of deposits definitely causes social impact, as most of the depositors are dependent on the said amount even for their daily maintenance including medical expenses.
Listing the matter for further hearing on June 19, she said, “This court certainly takes these matters very seriously and expects the government to take proactive action."
Justice Devan Ramachandran said that people losing confidence in the co-operative banking sector would have a deep "prejudice" on the state, "especially when the present financial position is not as satisfactory as it should be".
"...withdrawal of fixed deposits by co-operative banks is an essential condition of a healthy financial scenario; and its violation will certainly create unrest in the minds of individuals and prevent them from trusting such banks in future." The court said in its order of June 13.
The court's observations came while hearing petitions from depositors seeking return of their money in various co-operative banks in the state.
The court said during the proceedings that there has been no significant progress in the cases since the last hearing on May 21 as "none of the respondent-banks has intimated adequate payments to the various depositors.“To ensure that deposit requests are not violated would seriously undermine public confidence in the co-operative banking sector.
Justice Ramachandran said, "This would not be for the benefit of the State, but to its deep prejudice, especially when the present financial position is not as satisfactory as it should be."
The state government said during the hearing that it is devising ways, including amendments in the law, to ensure timely return of depositors' money when they ask for it back and a week to inform the court about the steps taken. Asked for time. , ,
One of the defendant banks – Kumpalampoika Service Co-operative Bank – told the court that it had returned 40 per cent of the deposits, while another bank – Kizhathdiyur Service Co-operative Bank – claimed that it had already returned about 25 per cent. Has returned. Has distributed. Has paid crores of rupees to its depositors.The court said that the delay in distribution of deposits definitely causes social impact, as most of the depositors are dependent on the said amount even for their daily maintenance including medical expenses.
Listing the matter for further hearing on June 19, she said, “This court certainly takes these matters very seriously and expects the government to take proactive action."
