Nation Current Affairs 07 Mar 2018 Exposing scam: KVS r ...

Exposing scam: KVS role in loan case under lens

Published Mar 7, 2018, 6:56 am IST
Updated Mar 7, 2018, 6:56 am IST
The sleuths recorded statements of complainants and self-help groups.
Fr Thomas Peelianickal
 Fr Thomas Peelianickal

ALAPPUZHA: The crime branch has intensified the probe into the agriculture loan fraud in Kuttanad. The sleuths recorded statements of complainants and self-help groups.    

Vijayakumaran Nair, the investigation officer, said they were looking into the role of NGO Kuttanad Vikasana Samithy (KVS), which helped people to obtain loans, and had questioned its officials.


The probe is on complaints filed by three Kavalam farmers accusing the "non-existent" farmer joint liability group of taking loans from the Canara Bank in their names without their knowledge.

In November 2014, six farmers under the aegis of Karshaka Mithra Nel Karshka Joint Liability Group availed loans to the tune of Rs 5 lakh. They maintain they had never joined the group, but received the bank's notice for loan default.

They alleged other people had forged their signatures.

Following this, another group of six from Mithrakary came up alleging KVS supported them to obtain Rs 5.4 lakh loan from a bank and they were asked to pay Rs 30,000 each to KVS on the promise of repayment at the time of loan maturity. 


The complainants allege that the KVS threatened them when they demanded  money back.

Several joint liability groups and self-help groups had obtained agriculture loan on its recommendation.  

KVS executive director Fr Thomas Peelianickal refuted the allegations saying they only recommended the joint liability groups to the banks and had nothing to do with the alleged fraud. 

"Banks disburse loans directly to them. If they failed to repay, they would contact us. We urge the farmer group to repay then," he said.


Regarding the allegation that KVS was accepting commission from the groups, he said it was an internal matter, and the money collected from the groups returned to them.