: The Madras High Court bench today stayed the auction/sale of jewels by private small bankers where some office bearers of Nadayaneri Primary Agricultural Cooperative Credit society allegedly repledged the jewellery of farmers and swindled the money.
Justice B Rajendran issued the interim direction on a petition by a farmer Rajesh Kannan,who had pledged 123.4 grams of jewellery with the society for 0.5 per cent Interest in 2013.
The Petitioner submitted that he pledged his jewels and had taken agricultural loan on March 23 and June 25 2013. Instead of charging 0.5 per cent interest, he was charged seven per cent interest.
He said when he wanted to redeem the jewels in Feb 2014, society chairman Rajagopal and an official Krishnamoorthy told him that the jewels were in the custody of Mariamman Bankers and asked him to redeem it from them. Though he gave a complaint to the Collector and Superintendent of Police of virudhunagar district, no action was taken, he said.
On a petition by Kannan, the High Court directed police to register an FIR. But no action was taken even after registering it, he said.
Hence he prayed for a direction from the court to the Collector to attach gold ornaments of farmers re-pledged with the private finance firms and hand them over to the original owners.
Kannan also sought a direction to the Collector, Joint registrar of society, who failed to inspect the society to see if the jewels were intact, to return his Jewels.
Expressing concern about the action of the society office bearers, the court suo motu stayed the auction or sale of jewels by private finance firms as the jewels had been repledged without the knowledge of the farmers.
Counsel for farmers said the issue had shocked many farmers who were under the impression that their pawned jewels were safe in the hands of the society. Its office bearers had committed a major fraud, equal to looting the bank, by repledging jewels in private finance firms and asking farmers to pay interest ranging from 14 to 20 per cent, he said.
The very objective of giving interest free loan by the Government for farmers would be defeated by such acts, he added.
