Cooperation Minister S T Somashekhar on Tuesday said that the government will recommend handing over to the CBI, the probe into irregularities at Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN) and Sri Vasista Credit Souharda Sahakari Ltd (SVCSSL).
Somashekhar chaired a meeting of stakeholders, public representatives and officials concerned, to take stock of the investigation progress in these scam-hit banks.
The minister directed the officials concerned to take necessary steps to prepare a detailed note that will be tabled in the next Cabinet meeting to hand over the cases to the CBI.
Expressing displeasure over progress of investigation in the two cases, the minister said that these banks have failed to recover the loans disbursed to various people in the city.
“We need to protect the interests of depositors and common people, who have deposited their hard earned money in these banks,” he said and reiterated that the state government was not protecting anyone in these cases.
Congress MLC U B Venkatesh said the two scams run into nearly Rs 2,800 crore. The CID, which is currently probing the scams, does not even have the required human resources, he charged. “Is the government trying to shield the defaulters? Let the government release the name of the defaulters,” he said.
In 2020, the Reserve Bank of India (RBI) had imposed withdrawal restrictions on Sri Guru Raghavendra Sahakara Bank Niyamitha. The probe had revealed that more than 2,500 crore was misappropriated by the bank management.
Presently, the Enforcement Directorate (ED) is investigating the case. In July 2021, several depositors had filed complaints with the Bengaluru city police suspecting misappropriation in SVCSSL and the directors were later arrested by the police.
Published 17 January 2023, 16:56 IST