Dattatreya allays Krushi Bank depositors' fears

By Our Staff Reporter

HYDERABAD, AUG. 26. The Central Government would introduce a bill in the Lok Sabha soon to protect the interest of depositors of cooperative banks, the Union Minister of State for Urban Development, Mr. Bandaru Dattatreya, said on Sunday.

``There should be no replay of the Krushi bank fiasco,'' Mr. Dattatreya told a delegation of aggrieved depositors of the Krushi Cooperative Urban Bank who met him here.

He assured them that he would take up the matter pertaining to the revival of the crisis-ridden bank with the Governor of the Reserve Bank of India and the Ministers concerned. He also promised to initiate efforts to secure higher amounts against their deposits. The aspect of providing deposits above Rs. 1 lakh and not insured under rules would also be looked into.

The Union Minister said the properties of all Krushi Bank directors would be seized forthwith, adding that he would discuss the issue with the Registrar of Cooperative Societies and the police as well.

The depositors expressed anguish at the inordinate delay in bringing the culprits to book. ``No headway has been made by the police so far. Not a single director of the bank has been arrested by them. We doubt the sincerity of the police,'' they said. The vice-chairman of the bank, K. Venugopal Rao, had voluntarily surrendered before the police, they pointed out.

On the elusive Chairman of the cooperative bank, K. Venkateswara Rao, they said, ``Police initially claimed he was in the United States trying to mobilise NRI funds and now their version is that he is within the country itself. No one knows what is happening. There is total confusion,'' the depositors bemoaned.

The Union Minister said he would pursue the matter with the State Government and the police top brass as well. ``Closure of the bank is not our demand. The Centre or the State Government should put the bank back on the rails so that there is money flow and we get back our deposits,'' was their fervent plea.

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