The Tamil Nadu Government has decided to cancel Jewel loans upto five sovereigns in cooperative banks resulting in an expense of six thousand crore rupees.
In a suo-moto statement in the State Assembly, Chief Minister M. K. Stalin said that the government had looked into the issue and has decided to cancel the loans obtained by people who are unable to pay back. According to the Chief Minister, the loans will be cancelled after taking into consideration 51 different basic points.
The Gold loans amounting to five sovereigns will be cancelled subjecting to 51 conditions specified. This was due to misappropriation in giving loans to those who did not deserve. The Chief Minister in his speech blamed the earlier government for cancelling the loans of more than two lakh people who had wrongly benefitted upto a total amount of two thousand 749 crore 10 lakh rupees. Several irregularities were also found in Gold loan obtained from Cooperative Society Banks. The government is preparing a data about the irregularities and to avoid such misgivings in future, core banking is to be introduced in Cooperative banks.