Syndicate Bank told to pay Rs 250-cr interest on RDPR dept deposits

Minister for Rural Development and Panchayat Raj H K Patil on Friday said the state government will initiate legal action against Syndicate Bank if it fails to pay Rs 250 crore as interest towards crores of rupees deposited in its branches, unauthorisedly by his department over the years.

Replying to Kota Srinivas Poojary (BJP) in the Legislative Council, he said the bank has been given 15 days time to pay the interest. Otherwise, legal action will be initiated. More than Rs 900 crore was deposited in various branches of Syndicate bank between 2008-09 and 2013-14 unauthorisedly. But, the bank has not paid interest to the government for the deposits, the minister added.

The government acted immediately after it learnt about the unauthorised deposits by RD&PR department officials and ensured that the entire money was transferred to the state treasury. Criminal and civil actions have been taken against the officials who were responsible for depositing the money unauthorisedly, he added. The money was meant for implementing various rural development schemes, including rural drinking water supply, Patil said.

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