Srinagar, Sep 09 (KNS): The cooperative banks established in the state are riddled with political intervention even in their day to day working including sanction of loans, deferring of recoveries and recruitment of staff.
Sources while disclosing this to KNS revealed that the CEOs of non backing backgrounds imposed over the managements of these cooperative banks are ruling the roost.
Presently almost the CEOs of almost all the cooperative banks including J&K State Cooperative Bank, Central Cooperative Bank Anantnag, Central Cooperative Bank Baramulla, Jammu & Kashmir State Cooperative Agriculture & Rural Development Bank (SCARDB) and Jammu Central Cooperative Bank are directly or indirectly aligned to present political establishment of the state. Put at a disadvantage by the autocratic style of the working of CEO’s of non banking backgrounds the government is itself contributing to the overall failures of almost all the cooperative banks in the State.
Though target of the activities of these banks was agriculture horticulture & other sectors of rural Economy, but the loans are sanctioned under the political recommendations with the purpose of never being returned. In certain cases even the rules have been flouted to sanction loans to the non deserving clients even without sufficient security.
Consequently there are huge outstanding loans which have almost eaten up the capital of the cooperative banks.
With the result that all these banks became liability for the state which had to sanction grants to these banks every year. However these grants failed to get the desired results as the govt support did not come without taking its pound of flesh. Since the funds had to be released by the Finance Deptt, the incumbents are getting their own men recruited in these banks, mostly without any requirement. This has created a culture of nepotism , corruption , lack of accountability in these banks with the result every one made the hay when the sun shined.
The banking activity failed, the govt assistance is used to pay the salaries & perks of the management, The SCARDB (State Cooperative Agriculture & Rural Development Bank) is worst hit by the messy corporative banking policies adopted by the successive governments in Jammu & Kashmir. The present Managing Director SCARDB is there on a court stay order as he was given a temporary charge till posting of a qualified IAS / KAS officer.Click Here To Follow Our WhatsApp ChannelIronically no one has represented the government in the court to challenged the officers stay order during last four years.
The Managing Director in connivance with his high ups in the cooperative department is sanctioning loans in favour of his own staff & management on low rates beyond their entitlement the bank neither starts any initiative for the recovery of bad loans nor any action takes against the defaulters under law.
The bank has become insolvent and the government assistance is utilized for the salaries of the staff. The SCARD bank in the year 2012, went into recruitment of more staff under the garb of improving the recovery of loans. The rules were flouted, no selection list was publicized & 46 such illegal appointments of recovery helpers was made in 2013. Many of the appointees are related to management bosses which can be gauged from the fact that half of them are from Bhilawar area of Kathua District wherefrom the then Minister hails .It is strange that the bank appointed 55 sweepers on regular basis while such job is given on contractual basis or outsourced to a private service provider.
The M D & GM of the Bank had tried their best & lobbied for the regularization of this unwanted staff in the successive Board Meetings but have failed to do so till now.
It is has been reliably learnt that the MD has now got the BOD meet fixed only to get these illegal appointments approved by it besides his other contentious proposal ,believing that nobody is going to take the notice , given the extra ordinary engagement of the state govt in tackling the present unrest.
When contacted a number of shareholders, clients & the employees of the SCARDB bank confirmed the worst corruption practices of the management of this bank. They added that a number of petitions were made to former Chief Minister, Ex Cooperative Minister, Registrar cooperatives, state vigilance & other anti graft bodies but to no avail.
The MD & GM of SCARD Bank are running it like an underworld mafia which not only threaten the scrupulous staff raising voice against them but also ensure that no action is taken by the high ups of the cooperative department. (KNS)