FIR against Rehman Khan

Alleged misappropriation of funds in Amanath Bank

A criminal case was filed on Wednesday at the Commercial Street police station by the bank Chief Executive Officer Shamar Banu, Cooperative Minister Lakshman Savadi told reporters in Bangalore, on Thursday.

The FIR states that Khan and others had sanctioned Rs seven crore to PHR Developers for construction of a commercial complex in Bangalore without calling tenders. Besides, Rs 17 crore had been illegally drawn from the bank.

Savadi said inquiry by senior officials of the cooperative department had revealed misappropriation to the tune of Rs 102 crore during the tenure of Rehman Khan as president of the bank (1998-2002). It was found that loans had been sanctioned to benami names. Along with Khan, Zia-Ul-Sharief, former president of the bank has been named in the FIR, Savadi said.

Benami names

Shortcomings in the transactions of the bank was first detected by RBI during 2001-02. The departmental inquiry report said that loans totalling  Rs 57.66 crore were advanced to 48 benami names between 1998 and 2002.

The inquiry report further states that misappropriation to the tune of Rs 57.77 crore took place between 2002 and 2005 when Zia-Ul-Sharief was the president and Rehman Khan was one of the directors of Amanath Cooperative Bank.

When contacted, Rehman Khan said he was not even issued a notice by the CEO of Amanath Cooperative Bank before filing the FIR.

“I am not bothered. Let the law take its own course. After all an FIR has been filed. Let the police investigate,” he said. Khan said that his detractors were instigating the administration of Amanath bank, which is taken over by the government, to foist false cases against him.He said, in 2002 when Mallikarjun Kharge was the Home Minister, the alleged irregularities of the bank were referred to the CoD.

“I deposed before the investigating agency for eight months. Three officers were chargesheeted. Now, in the FIR, it is alleged that the bank constructed a building for which bills have not been submitted. Though I was the president, it was non-officials who handled the building case. How can I be made responsible ?” he said.