Justice Ramachandran, who deals with cases involving co-operative societies, made scathing remarks against the functioning of such banks in Kerala.
Kerala: The Kerala High Court has strongly criticised co-operative banks in the State for repeatedly failing to return depositors’ money, leaving ordinary people helpless.
The observations were made by Justice Devan Ramachandran on Thursday while hearing a review petition filed by the Chandanapally Service Cooperative Bank.
The case was related to an earlier order that directed the bank to return the fixed deposit proceeds of one Rosamma Rajan.
Justice Ramachandran, who deals with cases involving co-operative societies, made scathing remarks against the functioning of such banks in Kerala.
He said:
“Kerala is the no.1 in the world in this. You (co-operative bank) will not return the money. People like you (creditors) who go and deposit money and other instruments in co-operative societies stand to lose money. There is no doubt about it.”
The judge also pointed out a disturbing political angle. He remarked that many people deposit money in these societies not for financial reasons, but to show support for political parties that control them.
He stated:
“Even today people are going and depositing in co-operative societies. That is one of their ways of showing their allegiance to their political party. As long as this continues nothing can happen. No court can help you, nothing can come to your aid when this is how the system functions. You lose your money.”
Drawing a sharp comparison, Justice Ramachandran said the functioning of these banks is no better than blade companies, a term used in Kerala for ruthless illegal money lenders.
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He shared his emotional response to the crisis:
“I am concerned about what is happening in my State. I am in love with this State and I can see where this is going. It is easy for us judges to dispose of these matters just saying there is an alternate remedy. But I am not doing it because I can see the plight of the ordinary people who are in front of me. And there is absolutely no support from the stakeholders to the High Court. If a judge writes a judgment in favour of a common man, the attack is that the judge has some other political affiliation.”
The judge expressed disappointment that the State government has not come forward to support people who have lost their hard-earned money due to failures by co-operative banks.
He said:
“The fact is that you (the co-operative bank) have squandered the hard earned money that people gave. A welfare state should have stepped in. This is the life of ordinary people. Why is it that the authorities have no heart at all?”
The bank, through its lawyers, argued that the money could not be returned because it had not been able to recover amounts misappropriated by its former Secretary. It blamed the government and its agencies for failing to help them recover the funds.
However, Justice Ramachandran rejected this excuse and adjourned the case to June 19 for further hearing.
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He remarked towards the end:
“Common man has no support in this State. You (petitioner) unfortunately have the common man tag. Find yourself a political affiliation, maybe then you will get your money. How many people in Kerala are suffering because they can’t get their fixed deposits back. We are powerless now.”
- Chandanapally Service Cooperative Bank was represented by advocates Manu Ramachandran, TS Sarath, M Kiranlal, Sameer M Nair, R Rajesh, Sailakshmi Menon, Jothisha KA, and Shifana M.
- Rosamma Rajan, the depositor, was represented by advocates Susanth Shaji, Sidharth O, and Albin A Joseph.
Case Name: Chandanapally Service Cooperative Bank v. Rosamma Rajan
