Govt flayed over inaction in Amanath Co-op Bank scam

The State government, on Thursday, came in for much flak from Opposition MLCs for not taking action against the culprits in the Amanath Bank scam.

Raising the issue, JD(S) senior MLC M C Nanaiah urged the government to hand over the probe to the Central Bureau of Investigation (CBI), and specifically investigation pertaining to irregularities by the Congress MP, K Rahman Khan’s companies.

He charged that successive governments, since 2003, have tried to shield the MP and not investigate the irregularities by the 17 companies registered under the names of his wife and children.

He said Khan’s family had misappropiated funds to the tune of Rs 45.39 crore by taking loans from Amanath Co-operative Bank.

Earlier, Leader of Opposition D V Sadananda Gowda chided the government for not even heeding their own senior leader C K Jaffer Sharief, who had sought CBI investigation into the matter.

Home Minister K J George said the government had already filed a charge sheet with the court on misappropriation by three officials of the bank and that the case was still pending.

“As regards Rahman Khan, there is no mention of such person in the CID report,” he claimed.

 Co-operation Minister H S Mahadev Prasad said the government had launched two inquiries into the bank’s misappropriation, totalling Rs 102.3 crore under Section 64 of Karntaka Co-operative Societies Act , 1959 . “But they have disputed the content of the two inquiries and have approached the High Court,” he said.