'Apex Bank flouts norms, sanctions Rs 25 cr loan'

'Apex Bank flouts norms, sanctions Rs 25 cr loan'

It cannot give more than Rs 30 lakh: Revanna

Raising the issue in the Legislative Assembly, he said the Apex Bank cannot sanction more than Rs 30 lakh loan to anybody as per the NABARD guidelines. Besides, the person who has got the loan is not a resident of Karnataka.

The loan has been sanctioned despite the then Managing Director of the Bank opposing it, he charged and demanded that the Government should order a CBI probe into the issue.

He further alleged that Reliable Developers, who have received the loan, has already defaulted Rs 10 crore to a private bank.

The Administrative Board of the Apex Bank in its meeting held on April 25, 2008 to verify the loan application filed by the real estate firm, had concluded that the company is eligible for only Rs 17.54 crore loan. “Some of the Board members had also opposed sanctioning the loan,” he charged.

This apart, Revanna also alleged that the government has recently superseded Chikmagalur District Cooperative bank for political reasons. The bank, which had incurred Rs 19 crore loss in 2004-05, had recovered in the recent years. In 2007-08, it had made Rs 4 crore profit. Still the government superseded it for the only reason that its director was a JD (S) man, Revanna alleged.

Illegal disbursal of loans

In Chitradurga, the district cooperative bank has illegally disbursed loans to the tune of Rs 4 crore. The money was sanctioned by the Centre’s Safai Karmachari Commission for giving Rs 10,000 loan to pourakarmikas. Though the bank has shown on records that the loan has been disbursed to 40,000 beneficiaries, not a single person has got it. The State Social Welfare Minister is the Chairman of the district cooperative bank, Revanna said.

‘No violation’

Replying to the charges, Cooperation Minister Lakshman Savadi said Apex bank has not violated any of its rules while sanctioning Rs 25 crore loan. NABARD guidelines say more than Rs 30 lakh loan should not been sanctioned to any individual. But it doesn’t say it cannot be sanctioned to a company.

However, the Apex bank has decided to recall the loan sanctioned to the company and has already recovered Rs 4 crore. By saying so, he rejected Revanna’s demand for a CBI probe. Upset with the reply, the JD(S) members staged a walk out.

DH Newsletter Privacy Policy Get top news in your inbox daily
Comments (+)