Kerala govt clarifies of not writing-off debts of cooperatives

The Kerala government has recently clarified that it has not “written off” the debts of three cooperative institutions which had availed huge loans from the state and district cooperative banks. Cooperation minister Kadakampally Surendran said that Rubco, Marketfed and Rubber Mark had only been given loans by the government to tide over their losses.

The Minister said the governments’ settlement plan had no connection with the Chief Minister’s Distress Relief Fund as is being reported by a section of the media. Instead of paying back their dues to the cooperative bank, the institutions will have to pay it to the state government. The cooperative institutions have been asked to come up with their revival plan so their debts can be repaid in a timely manner.