PMK urges TN govt to release funds to cooperative banks

CHENNAI: Pointing out that the Cooperative Societies in the states are under severe financial stress, PMK founder S Ramadoss urged the Tamil Nadu government to release funds to the cooperative banks so that they can continue running.

In a statement, the senior leader said that the government has not released the funds to the cooperative banks.

"Also, the government is forcing the banks to implement schemes that would empty funds and manpower. The banks are heading towards closure. The government waived off agriculture loans, gold loans, and self-help group loans in 2021 and 2022. But the government is yet to return Rs. 10,000 crore to the banks," he added.

He said that the government is forcing the banks to function as multi-service centers to provide tractors, harvesting machines, trucks, and others on a rental basis.

"Implementing such schemes without providing sufficient funding and infrastructure will affect the banks. It is not wrong to implement a scheme to provide equipment at lower rents. However, the modality of implementing the scheme is wrong. The government should have procured the equipment and provided it to the banks," he said.

Ramadoss pointed out that of 4,500 cooperative societies in the State, 2,500 are loss-making.

"They do not have funds to disburse salaries to the employees. The government should procure the equipment in its own fund and ensure the societies are functioning properly," he urged.

In a separate statement, party president Anbumani Ramadoss urged the government to waive off the pending lease to be paid as paddy by the farmers farming on temple lands.