The J&K State Cooperative Agriculture & Rural Development Bank (SCARDB) has become the proverbial white elephant for the State. This is perhaps the solitary bank in the State that has been constantly running on loss, which for the previous financial year is computed at 6 crore rupees.
We learn that there was a move in the bank at the level of the Managing Director and other officials to regularize the services of about 120 of its employees but the Minister for Cooperatives has turned down the proposals for some strong reasons. The bank is expecting further loss to the tune of 3 crore rupees for current financial year. It has come to light that about 120 backdoor appointments were made in the bank during the regime of NC-Congress coalition on the recommendation of the then Minister for Cooperatives. These appointments were made in contravention of the bank rules and the appointees did not face any competition which is against the service rules. The regularization of services of 120 employees, the Minister of Cooperatives since the bank is already running into huge losses, it is unable to face additional burden on account of the hiked salary of the employees appointed during 2014. Not content with that, further boost was given and this monthly salary was raised to rupees 10,000. The State Cooperatives Depart-ment that the bank which always remained a `white elephant’ for the Government has already been black listed by the National Bank for Agriculture and Rural Development (NABARD). It has stopped financial assistance to this bank about 16 years ago. The bank has come under fire and hit the headlines of several newspapers in the recent past due to alleged nearly 120 `backdoor’ entries. In a recent meeting of the Board, the Minister for Cooperatives had insisted on all senior officers that efforts need to be made to improve the fiscal health of the bank failing which it may be difficult to stop the downslide. Some slight improvement has been seen though small one and that is only in Jammu region. In Kashmir region there appears no impact of Minister’s suggestion.
We propose that the Minister should constitute an inquiry committee to find out why this bank has been running on losses and what could be means and methods of improving its fiscal health. The bank is not allowed to have its own way.
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