THRISSUR: Rs 250 crore will be raised for the revival of Karuvannur Co-operative Bank. Kerala Bank, which leads the consortium, is known to take over Rs 150 crore loan from Karuvannur. It is learned that Rs 50 crore will be raised from the members of the consortium and the rest from the deposit guarantee scheme. According to the investigation report of the co-operation department, Rs 226.77 crore was swindled in Karuvannur.

A decision on the consortium will be taken at a meeting chaired by the co-operation minister next week and a government order will be issued soon. The consortium will then be formed.

M Binoy Kumar, Additional Registrar who is in charge as the Registrar, had visited Thrissur last week and held discussions with the department officials. 48 co-operative societies are willing to join the consortium. The readiness of the other groups will be known this week after the board meeting. The final list of banks will then be given. The government is of the opinion that those who come forward voluntarily should be made members of the consortium and they can pay whatever amount they wish.

Kerala Bank to lead

Kerala Bank will also head the fund management committee as it takes on more liabilities. The Joint Registrar has recommended the formation of a five- or seven-member fund management committee as part of the consortium. Kerala Bank Manager or an official holding the post not less than that of Secretary of Primary Co-operative Societies will be in charge of the post. The committee will also be responsible for repaying deposits, collecting arrears and reviving the bank.