The Government of Tamil Nadu has issued an order waiving the jewelery loans obtained from the cooperative banks. Accordingly, jewelery loans of less than 40 grams are waived. Government announces Rs 6,600 crore jewelery loan waiver subject to Rs 5 lakh per family
The Government of Tamil Nadu has stated that this jewelery loan waiver will be waived under certain conditions including 5 shavings per family. It has also been announced that the Registrar of Co-operative Societies may lay down additional rules regarding waivers.
16 lakh jewelery borrowers benefit
The total cost to the state, preliminary assessment, the study will cost the state of Tamil Nadu up to Rs 6000 crore, the government said. It has been announced that the government will accept the principal and interest on the jewelery loan and the discounted amount will be given to the co-operatives. The government will also accept interest on the original amount of the rebate from April 2024 until the date of birth. The Tamil Nadu government has announced that 16 lakh jewelery lenders will benefit from this.
Government of Tamil Nadu
In this connection, the Government of Tamil Nadu has issued a notification under the Rule No.110 of the Legislative Assembly on 13.09.2024 stating that the waiver of jewelery loans up to Rs. According to preliminary estimates and studies, the cost to the government of waiving jewelery loans of up to 5 5 per eligible family is estimated at Rs 6,000 crore.
Jewelry discount
In order to implement the Chief Minister’s announcement, a family of co-operatives had a family card under the Family Card up to 31.03-2024 subject to 5 Pounds (up to a total weight of 40 g) of gold jewelery mortgaged to a few borrowers: excluding part or all of their loan amount. The outstanding amount as on 31-03-2024 was Rs.17,114.64 crore, after which from 01.04.2024 to 30.09.2024 partial or complete repayment of public jewelery loans and excluding unqualified instances including principal, interest, penalty interest and other expenses 6,000 crore (approximately).
Criminal action against those involved in fraud
Therefore, in order to carry out the notification of the Chief Minister of Tamil Nadu, the Government orders the waiver of these jewelery loans as per the norms, based on the concept of the Registrar of Co-operative Societies. The Registrar of Co-operative Societies is requested to advise all Co-operative Societies to follow these guidelines. Jewelry loans found in the list related to the above jewelry loan waivers should be inspected by the Co-operative Audit Officers of the neighboring district. Further, criminal action will be taken against all persons involved in blatant jewelery loan fraud.
Original & Interest
About 16 lakh jewelery lenders in Tamil Nadu will benefit from this jewelery loan waiver. As all the jewelery loans provided by the Co-operative Societies are disbursed from the own funds of the Co-operative Societies, ie from the deposits received from the general public, the Government will accept the interest on the above amount and the interest on the co-operatives from 01.04-2024 up to the date of issue of this Order.
Registrar of Co-operative Societies
The Registrar of Co-operative Societies is empowered to make additional protocols as required in the guidelines attached to this Ordinance. Quantification (Reimbursement) of the amount of the general jewelry loan discounted as above and the issuance of appropriate orders. The Registrar of Co-operative Societies is requested to send the relevant concept to the Government. ”
