Jammu: Depositors’ money in Jammu and Kashmir State Cooperative Agriculture and Rural Development Bank is safe, Cooperative Minister Javid Ahmad Dar said on Thursday, noting that the process to appoint a liquidator is underway following an alleged Rs 181 crore embezzlement.
The assurance was given by the minister in the Legislative Assembly after BJP legislators rose from their seats during Zero Hour, pressing for a government statement on the issue, which Speaker Abdul Rahim Rather described as “very serious”.
“We have already initiated the process to appoint a liquidator. The matter involves various technicalities and pertains to around Rs 181 crore, so it cannot be resolved overnight. I want to assure accountholders that their money is safe and backed by a government guarantee-it is not lost anywhere; it is with the government,” Dar said.
He said the file has been returned to the Cooperatives Department from the Finance Department, and the process of appointing a liquidator is likely to be completed within the next few days, with the entire exercise expected to conclude within one to two months.
While assuring of stern action against those involved in the scam, the minister said the government will look into the issue of genuine employees after getting a report.
Earlier, the minster had informed the House that the State Co-operative Agriculture and Rural Development (SCARD) bank is not registered under the Banking Regulation Act, 1949 and therefore does not fall under the purview of the Reserve Bank of India.
The bank is presently under the control of the UT government through the Registrar of Co-operative Societies (RCS) and the Administrative Department of Cooperatives, he had said.
The bank has not been declared bankrupt and the government has initiated the process of liquidation in accordance with the provisions of the Jammu and Kashmir Co-operative Societies Act, 1989 due to prolonged financial and operational distress.
