Assurance Amid Embezzlement Scandal: Cooperative Bank's Safe Deposit Pledge

The Jammu and Kashmir State Cooperative Agriculture and Rural Development Bank’s deposits are safe, confirmed Cooperative Minister Javid Ahmad Dar, despite a Rs 181 crore embezzlement. The government is appointing a liquidator, ensuring depositor protection backed by a guarantee, promising resolution within two months while pursuing stern actions against the culprits.

Depositors at the Jammu and Kashmir State Cooperative Agriculture and Rural Development Bank can breathe a sigh of relief as their funds remain secure despite an alleged Rs 181 crore embezzlement, reassured Cooperative Minister Javid Ahmad Dar. The assurance was provided during the Legislative Assembly session, following significant concern raised by BJP legislators.

The minister confirmed ongoing efforts to appoint a liquidator amid the financial scandal but insisted that the safety of depositors' money, backed by a government guarantee, remains a top priority. This assurance comes while the bank navigates complex technical proceedings after reports of substantial financial malfeasance.

Although not registered under the Banking Regulation Act, 1949, the bank falls under UT government oversight through the Registrar of Co-operative Societies and the Administrative Department of Cooperatives. Efforts to resolve the issue are expected to culminate within two months, while investigations continue into identifying those culpable in the embezzlement.

(With inputs from agencies.)