Tribal families in Gudalur allege loan fraud by trust office-bearers

Around 60 families in Gudalur have alleged that they were defrauded by the office-bearers of a trust that arranged small loans in their name but did not repay the money to the bank.

The Tamil Nadu Tribal People's Association, which took up their case, said its district organiser K. Mahendran and the affected residents petitioned the Superintendent of Police on Tuesday, seeking action against those responsible.

According to the complaint, representatives of the trust approached tribeswomen belonging to the Kattunayakan and Paniya communities in Devarshola, Nellakottai and Sri Madurai panchayats and offered to arrange loans for them through the Indian Bank branches at Gudalur and Devarshola.

The loans were secured under a joint liability group system, with each beneficiary receiving between ₹50,000 and ₹1 lakh. The complainants alleged that trust representatives visited the women every month to collect the instalments, but diverted the money instead of depositing it with the bank.

The collections are said to have continued even after the 30-month repayment period had ended. Because the amounts were not remitted, the bank accounts of members of the groups were frozen, Mr. Mahendran alleged.

The complainants also raised allegations of fraud against the bank, saying it had seized money deposited in the women's accounts for government housing schemes.

Mr. Mahendran said the tribespeople in these areas depend on seasonally collecting and selling pepper, honey and areca nuts, and on occasional work in plantations and as estate labourers. With no continuous source of employment and with many men reportedly addicted to alcohol, the group loans have added to strains within families, he said.

The association has demanded action against the trust's chairman, secretary, co-ordinator and others, and has sought that a case be registered under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act.